Millennium Institute of Management: Topic:B.S.E. & N.S.E. Presented By: Shaikh Abdul Hadi Guide:Sayed Farhan Sir

DR.
RAFIQ ZAKARIA CAMPUS

MILLENNIUM INSTITUTE OF
MANAGEMENT
Topic:B.S.E. & N.S.E.
Presented by: Shaikh Abdul Hadi
Guide:Sayed Farhan Sir

STOCK EXCHANGE
Place where trading of shares is done in
terms of sale and purchase.
Definition:
“Stock Exchange as any body of
individuals, whether incorporated or not,
constituted for the purpose of assisting,
regulating or controlling the business of
buying, selling or dealing in securities”.
Functions of stock exchange
 Marketability to Securities
 Transferring Ownership
 Providing Liquidity
 Allocator of Capital
 Safety to Investors
 Mobilisation of Savings
 Promoting industrial democracy
MAJOR DEPARTMENTS OF STOCK EXCHANGE
 Listing Department
 Operations Department
 Computer and EDP Department
 Inspection and Audit Department
 Monitoring Department
 Investors Service Depatment
Bombay Stock Exchange
The oldest market not only in the country, but also in Asia.
BSE is the first stock exchange in the country which obtained permanent
recognition (in 1956) from the Government of India under the Securities
Contracts (Regulation) Act 1956
It migrated from the open outcry system to an online screen-based order driven
trading system in 1995
Bombay Stock Exchange is the oldest stock
exchange in Asia What is now popularly known as
the BSE was established as "The Native Share &
Stock Brokers' Association" in 1875.
world's number 1 exchange in the world in terms of
the number of listed companies (over 4900)
It was recognised on a permanent basis on 1957.
OBJECTIVES OF B.S.E.
safeguard the establish and

interest of promote
investing just practices in
public securities.
promote, To promote
develop and industrial
maintain well- development in the
regulated market country through
for dealing in efficient resource
securities mobilization
TRADING SYSTEM
In March 1995, the BSE introduced screen
based trading called BOLT.
 BOLT is designed to get best bids and
offers from Jobbers’ book as well as the best
buy and sell orders from order book
 The capacity of the Tandem hardware of
BOLT is 5,00,000 trades per day (in 6
hours).
 BOLT is now a nation wide network
connected with the main computer at
Mumbai through WAN.
National Stock Exchange (NSE)
The National Stock Exchange of India was promoted by leading

Financial institutions at the behest of the Government of India.
Incorporated in November 1992 as a tax-paying company
In April 1993, it was recognized as a stock exchange under the

Securities Contracts (Regulation) Act, 1956.
OBJECTIVES
 To establish a nation wide trading facility for

equities, debt instruments and hybrids.
 To ensure equal access to investors all over the
country through appropriate communication network.
 To provide a fair, efficient and transparent securities
market to investors.
 To enable shorter settlement cycle and book entry
settlement system.
 To meet current international standards of securities
market.
SENSEX
and
NIFTY ?
BSE Sensex
BSE Sensex stands for Bombay Stock Exchange Sensitive

Index.
Sensex is an index, an index is basically an indicator.
The Sensex is an indicator of all the prices of the major

companies of the BSE(Bombay stock exchange)
SENSEX, first compiled in 1986
It consists of the 30 largest and most actively traded stocks,

representative of various sectors
S&P CNX NIFTY
The National Stock Exchange's key index is the S&P CNX Nifty (known as
the Nifty).
S&P - Standard & Poor's.

CNX - Credit Rating Services of India Limited (CRISIL) and the National
Stock Exchange (NSE)
The base date selected for calculation of Nifty is November 3, 1995
It represents the 50 largest and most actively traded stocks of 22 various sectors
on the National Stock Exchange.
Calculation of BSE Sensex
The formula for calculating the SENSEX

= (Sum of free flow market capital of 30 biggest
stocks of BSE)*Index Value in 1978-79/Market
Capital Value in 1978-79.
Note: The base value (index value) of the

Sensex is 100 on April 1, 1979, and the base
year of BSE-SENSEX is 1978-79.
Calculation of NSE Nifty
The formula for calculating the Nifty
= (Sum of free flow market cap of 50 biggest stocks

of NSE) * Index Value in 1995 / Market Cap Value in
1995.
Note: Base year is 1995 and base value (index
value) is 1000.
NIFTY is calculated based on 50 stocks.
Thank you!!!!!

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DR.

RAFIQ ZAKARIA CAMPUS

Topic:B.S.E. & N.S.E.

Presented by: Shaikh Abdul Hadi

Guide:Sayed Farhan Sir

safeguard the establish and

The National Stock Exchange of India was promoted by leading

Incorporated in November 1992 as a tax-paying company

In April 1993, it was recognized as a stock exchange under the

 To establish a nation wide trading facility for

BSE Sensex stands for Bombay Stock Exchange Sensitive

The Sensex is an indicator of all the prices of the major

SENSEX, first compiled in 1986

It consists of the 30 largest and most actively traded stocks,

S&P - Standard & Poor's.

The base date selected for calculation of Nifty is November 3, 1995

The formula for calculating the SENSEX

Note: The base value (index value) of the

The formula for calculating the Nifty

= (Sum of free flow market cap of 50 biggest stocks

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