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August 31, 2014

Important details you should know about the Stock Exchanges in India

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Friends, we have already learned about the Introduction, Role and Functions of Secondary Markets (Stock Exchanges). Today we shall learn some important details about the Stock Exchanges in India.

Stock Exchanges in India

  • The Stock Exchange is the market for buying and selling of stocks, shares, securities, bonds and debentures etc. It increases the market ability of existing securities by providing simple method for public and others to buy and sell securities.
  • The first organized stock exchange in India was started in Bombay (now Mumbai) when the "Native Share Brokers' Association" known as the Bombay Stock Exchange (BSE) was formed by the brokers in Bombay. BSE was Asia's oldest stock exchange.
  • In 1894, the Ahmedabad Stock Exchange was started to facilitate dealings in the shares of textile mills there.
  • The Calcutta Stock Exchange was started in 1908 to provide a market for shares of plantations and jute mills.
  • The number of stock exchanges rose from 7 in 1939 to 21 in 1945.
  • Under the Securities Contract (Regulation) Act of 1956, the Government of India has so far recognized 23 Stock Exchanges. Bombay is the premier exchange in the country.
  • With the setting up of National Stock Exchange, all regional stock exchanges have lost relevance.
  • The BSE transformed itself into a corporate entity from being a brokers association, from the middle of August, 2005.
  • As a public limited company, BSE (Bombay Stock Exchange) is obliged to dilute stock brokers stake to 49%.
  • To prevent excessive speculation and volatility in the stock market SEBI has introduced rolling settlements from 2nd July 2001, under which settlement has to be made everyday.

Some Important Share Price Index of India

  • BSE SENSEX : This is the most sensitive share index of the Mumbai Stock Exchange. This is the representative index of 30 main shares. Its base year is 1978-79. BSE is the oldest stock exchange of India, founded in 1875.
  • BSE 200 : This represents 200 shares of Mumbai Stock Exchange. Its base year is 1989-90.
  • DOLLEX : Index of 200 BSE Dollar Value Index is called DOLLEX. Its base year is 1989-90.
  • NSE-50 : From 28th July 1998, its name is S and P CNX Nifty. National Stock Exchange has launched a new share Price Index, NSE-50 in place of NSE-100 in April 1996. NSE-50 includes 50 companies' shares. This stock exchange was founded on Ferwani Committee's recommendation in 1994.
  • Note : CRISIL Set up in 1998 is, a credit rating agency. It undertakes the rating fixed deposit programmes, convertible and non-convertible debentures and also credit assessment of companies.
  • CRISIL 500 : It is the new share Price Index introduced by Credit Rating Agency, the "Credit Rating Information Services of India Limited" (CRISIL) on 18tj January 1996
    • Apart from CRISIL, ther is another credit rating agency called "Investment Information and Credit Rating Agency of India Limited (ICRA)". It rates debt instruments of both financial and manufacturing companies.
  • The National Stock Exchange (NSE) has launched a new version of its online trading software called "National Exchange for Automatic Trading (NEAT)"
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45 comments:

  1. thanks for this commendable Information ....

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  2. Hlo mam thanx 4 d information bt plz do tell me dat which credit rating agency has recently changed its name and what is the new name,, I think its CRISIL bt dont knw d new name

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  3. mam pls provide maths and reasoning quiz.

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  4. i am applied for ibps clerks on 13/08/14 and i paid the fee on 22 /08/14 , but till now i am not getting any email regarding the payment. mam is there any solution plz help me

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  5. anybody want banking abbreviation full set put ur mail id here.

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  6. gmohandattu@gmail.com pls mail to me

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  7. Great Motivation comes from great Minds...!!!

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  8. friends share ur experience today sbi clerk exam

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  9. ranandr.r7@gmail.com .. Kindly mail

    ReplyDelete
  10. what are convertible and non convertible debentures?

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  11. swapna@rediffmail.com

    ReplyDelete
  12. mam pls suggest me i lost my rrb po and rrb clerk application form what i do

    ReplyDelete
  13. Plz mail me at "mail2shravanraju@gmail.com"

    Thanks in advance

    ReplyDelete
  14. dear,its fitch india .that changed name to india rating and research pvt lmt

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  15. which is best online test series for ibps po ?

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  16. Thanks sir

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  18. Bharath7007@gmail.com

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  19. Khandelwaldivya07@yahoo.in

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  20. plz send current affair and bank awareness

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  21. plz send it to jamiabbs@gmail.com

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  22. prasad.kkns09@gmail.com

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  23. sehwag1608@gmail.com please mail me that material

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  24. thnx.... thi is really helpful....

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  25. hello sir please send me SBI PO associated post study material

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  26. rajiprasad369@gmail.com

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  27. somnath242488@gmail.com..
    mail me.. thank you

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  28. mam i want all in pdf please provide me

    ReplyDelete
  29. Hello Admin will you provide the list of all important ABBRIVATIONS which is useful for
    PO exam?? If you do so i would be thankful to you...

    ReplyDelete
  30. RAHUL KUMAR SRIVASTAVASeptember 4, 2014 at 10:32 AM

    if the team is provide study material for various exam in hindi language it also benfited many students who are preparation their exam in hindi medium...so if it is possible, then i request the team please provide these material in hindi language also....thanx ..

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  31. HY EVERYONE I JST WANT TO KNW THAT MAINE IBPS KA PO Apllication form ka print out nikalana bhull gayi toh problem toh ni hogi bcoz at the tym of interview they ask the application from and the link bhi deactivate ho gaya hai so wht 2 do can't understand??????/

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  32. Richa..seriously what have u done..you must have the print out of application form at the PIs..now you are in deep trouble God. Bless u bachha..tu to gyi ab..!!

    ReplyDelete
  33. Please post expected current monthly affairs by quiz

    ReplyDelete
  34. Thank U so much
    Can we get Monthly Current affairs in practice sets

    ReplyDelete
  35. could u pls help me i cant open the application for sbi po

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  36. This is one of the best blog that details very informative and important details. Epic Research will look forward to latest update .

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