A presentation on the history of stock exchange in india, along with its membership requirements and importance
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The document provides an overview of stock exchanges in India, including their history and membership requirements. It discusses that India has 19 stock exchanges, with BSE being the oldest established in 1875. NSE was formed more recently in 1992 as an electronic exchange. Membership on the exchanges is open to individuals, firms, LLPs, and companies meeting certain criteria like minimum age, no bankruptcies or convictions, and minimum paid-up capital for companies. The admission process involves applying and agreeing to certain conditions. Stock exchanges are important for facilitating investment and raising capital for companies while providing markets for investors.
A presentation on the history of stock exchange in india, along with its membership requirements and importance
- 2. TOPIC • A presentation on the History of Stock Exchange in India, along with its membership requirements and Importance
- 3. CONTENTS Stock Market of India – facts Functions of Stock Market Objectives of Stock Market History Introduction to leading stock exchanges in India Membership Requirement Who can be a member Qualification of member Criteria for registering for Individual, LLP and Company Admission Process Importance
- 4. STOCK MARKETS OF INDIA - Facts • There are 19 stock exchange in India • BSE has the highest no. of companies in the world • Indian stock market is one of the top 10 markets in the world • There are more than 20 million Demat Account holders in India • In January 2015, Nifty witnessed the record market capitalization of 98,45,639 crores
- 5. FUNCTIONS OF STOCK EXCHANGE In accordance to SEBI, they can form By-Laws for regulations and control of contracts They provide the timings of Opening and Closing of the market Acts as a Clearing house Regulates and prohibits blank transfers Can alter the date of final settlement To determine and declare market rates Provide methods and procedures for settlement of claims
- 6. OBJECTIVES OF STOCK MARKET To establish a nation wide trading facility To ensure an appropriate communication network To facilitate Electronic Payment System To enable shorter settlement cycles To meet the current international standards of the security market
- 7. HISTORY • Indian Stock market dates back to the close of 18th Century when the East india Company used to transact loan securities. • Trading by a group of 22 stock brokers under a Banyan tree opp. The Town Hall of Bomabay. • Formation of Bombay Stock Exchange(BSE) in 1875 • Premchand Roychand was the leading stock broker at that time who provided some rules and regulations which are still followed.
- 8. Contd. • In 1956, BSE was recognized as the first stock exchange in India under SCRA • The happening of a tragic event in 1992 which marked the failure of BSE. • Formation of an electronic marketplace known as National Stock Exchange(NSE) in 1994.
- 9. Introduction to the leading Stock Exchanges of India • Bombay Stock Exchange - BSE was set up in the year 1875 and is the oldest stock exchange in Asia. It has evolved in to its present status as the premier stock exchange. • National Stock Exchange - National Stock Exchange incorporated in the year 1992 provides trading in the equity as well as debt market. Maximum volumes take place on NSE and hence enjoy leadership position in the country today.
- 11. Who can be a Member? Individual Registered Firms Limited Liability Partnership Body Corporates Companies as defined in Companies Act, 1956 Any other persons or entities as may be permitted under the Securities Contracts (Regulation) Act, 1956
- 12. Qualifications of the Member The proposed member :- should be an individual who has completed 21 years of age should not be an individual who is engaged as a principal or employer in any business other than that of securities has not been adjudged bankrupt has not convicted of any fraud or dishonesty has not been previously refused admission
- 13. Criteria for Individual The individual person shall be eligible for admission to trading membership of the Exchange if : he has worked as a partner for more than 2 years he agrees to work for a minimum period of two years as a partner or representative member with another member of the Exchange he succeeds to the established business of a deceased or retiring member of the Exchange
- 14. Criteria for Limited Liablility Partnership It has to be formed under Limited Liability Partnership Act, 2008 The Limited Liability Partnership complies with the conditions laid down in Rule 8(6) of the Securities Contracts (Regulation) Rules, 1957
- 15. Criteria for Companies The company should be formed in compliance with the provisions of section 12 of the Companies Act, 1956 Minimum paid up equity capital should be more than 30 lakhs it undertakes to comply with such other financial requirements and norms as may be specified by the Securities and Exchange Board of India
- 17. IMPORTANCE OF REGISTERING Fund raising and exit routes for investors Ready marketability of security Ability to raise further capital Supervision and control of Trading in Securities Fair price for the securities Timely disclosure of corporate information Collateral value of securities Better corporate practice Benefits to the public Sub-divison and Consolidation of Holdings
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