Comparative Study of NSE & BSE

A COMPARATIVE STUDY OF NSE AND BSE

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1. INTRODUCTION 1.1.INTRODUCTION TO FINANCE Finance is one of the major elements, which activates the overall growth of economy. Finance is the lifeblood of economic activities. The study of business finance is concerned with the provision, flow and use of finance within a business organization and with demand for, and supply of, funds for business within the economy as a whole. This would enable the country to have supply of funds to the industry and agriculture continuously. Economics problems of the nation can be solved comfortably through which selfsufficiency can be attained. Thus the financial system plays a significant role in the building up the economy. Every enterprise, whether big, medium or small needs finance to carry on its operations to achieve its targets. Hence, finance is so indispensable today that it is rightly said it is life blood of an enterprise. Without adequate finance, no enterprise can possibly accomplish its objectives. The function of finance has been traditionally classified into two type's namely private finance and public finance. It deals with the requirements, receipts and disbursement of funds in government institutions like state, local, self-government. Private finance is concerned with the requirement, receipts and disbursement of funds in case of an individual, a profit seeking business organization and a non-profit organization. During the pre-independence period, financial constraints

have hampered the rapid development of

industry in the country. 1.2.DEFINITION OF FINANCE According to Howard and Upton, "finance may be defined as that administrative area or set of administrative functions in an organization which relates with the arrangement of each and credit so that the organization may have the means to carry out the objectives as satisfactorily as possible. According to Anthony, “Financial statements essentially, are interim reports, presented annually and reflect a division of the life of an enterprise into more or less arbitrary accounting

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period more frequently a year”. The day-to-day transactions of a business are recorded in different subsidiary books. These transactions are reported in various ledgers and their balances are taken out at the end of the financial period. The aim of maintaining various records is to determine the profitability of the enterprise from the operations of the business and the financial position. 1.3.BUSINESS FINANCE The term 'business finance‟ is very comprehensive, as it implies finances of business activities. The term, 'business' can be categorized into three groups: commerce, industry and service. It is a process of rising, providing and managing of all the money to be used in connection with business activities.

THE MAIN FEATURES OF FINANCE

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1. Investment Opportunities In Finance, Investment can be explained as a utilization of money for profit or returns. Investment can be done by:Creating physical assets with the money (such as development of land, acquiring commercial assets, etc.), Carrying on business activities (like manufacturing, trading, etc.), and Acquiring financial securities (such as shares, bonds, units of mutual funds, etc.). Investment opportunities are commitments of monetary resources at different times with an expectation of economic returns in the future.

2. Profitable Opportunities

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In Finance, Profitable opportunities are considered as an important aspiration (goal). Profitable opportunities signify that the firm must utilize its available resources most efficiently under the conditions of cut-throat competitive markets. Profitable opportunities shall be a vision. It shall not result in short-term profits at the expense of long-term gains. For example, business carried on with non-compliance of law, unethical ways of acquiring the business, etc., usually may result in huge short-term profits but may also hinder the smooth possibility of long-term gains and survival of business in the future.

3.Optimal Mix of Funds Finance is concerned with the best optimal mix of funds in order to obtain the desired and determined results respectively. Primarily, funds are of two types, namely, Owned funds (Promoter Contribution, Equity shares, etc.), and Borrowed funds (Bank Loan, Bank overdraft, Debentures, etc). The composition of funds should be such that it shall not result in loss of profits to the Entrepreneurs (Promoters) and must recover the cost of business units effectively and efficiently. 4. System of Internal Controls Finance is concerned with internal controls maintained in the organization or workplace. Internal controls are set of rules and regulations framed at the inception stage of the organization, and they are altered as per the requirement of its business. However, these rules and regulations are monitored at various intervals to accomplish the same which have been consistently followed. SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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5. Future Decision Making Finance is concerned with the future decision of the organization. A "Good Finance” is an indicator of growth and good returns. This is possible only with the good analytical decision of the organization. However, the decision shall be framed by giving more emphasis on the present and future perspective (economic conditions) respectively. CORPORATE FINANCE Corporation finance deals with the financial problems of a corporate enterprise. These problems include the financial aspects of the promotion of new enterprises and their administration during their early period ; the accounting problems connected with the distinction between capital and income, the administrative problems arising out of growth and expansion, and, finally, the financial' adjustments which are necessary to booster up to rehabilitate a corporation which has run into financial difficulties.

FINANCIAL ANALYSIS Financial analysis is the process of identifying the financial strength and weakness of the firm by properly establishing relationships between the items of the balance sheet and the profit and loss account. Financial Analysis can be defined as a study of relationship between many factors as disclosed by the statement and study of the trend of these factors. The basis for financial planning, analysis and Decision-making is the financial information. Financial information is needed to predict, compare and evaluate the firm‟s earning ability. SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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AIMS OF FINANCE Acquiring sufficient funds Proper utilization of funds Increasing profitability Maximizing firms value Estimating financial requirements Deciding capital structure Selecting a source of finance Selecting a pattern of investment Proper cash management Implementing financial control Proper use of surplus

STOCK EXCHANGE IN INDIA Ahmedabad stock exchange

Bangalore stock exchange

Bhubaneswar stock exchange

BOMBAY STOCK EXCHANGE

Kolkata stock exchange

Cochin stock exchange

Coimbatore stock exchange

Delhi stock exchange

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Guwathi stock exchange

Hyderabad stock exchange

Indore stock exchange

Jaipur stock exchange

Kanpur stock exchange

Ludhiana stock exchange

Madras stock exchange

Magadhstock exchange

Mangalore stock exchange

Pune stock exchange

Saurashtra stock exchange

Vadodara stock exchange

NATIONAL STOCK EXCHANGE

Over the counter exchange of India [OTCEI]

Inter connected stock exchange [ICSE]

Stock exchanges are the physical location where stocks are bought and sold. They are the sisters of the Over-The - Counter (OTC) market. The OTC refers to market in which securities transactions are conducted through a telephone and computer networks connecting dealers in stocks and bonds, rather than on the floor of an exchange. Together, these two markets form the secondary market. The primary and secondary markets together form the stock mark.

WORLD WIDE STOCK EXCHANGES American Stock Exchanges American Stock Exchange (AMEX) Chicago Mercantile Exchange (CME) New York Stock Exchange (NYSE) NASDAQ Stock Exchange SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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Toronto Stock Exchange (TSX) European Stock Exchange: London Stock Exchange (LSE) London Metal Exchange (LME) Irish Stock Exchange (ISE) Italian Stock Exchange (BIT) Frankfurt Stock Exchange (FSE) OMX Stock Exchanges (OMX) Moscow Stock Exchange(MICEX) Athens Stock Exchange (ASE) Asian and Pacific Stock Exchanges: Hong Kong Stock Exchanges (HKSE) Bombay Stock Exchange (BSE) Tokyo Stock Exchange (TSE) Singapore Exchange (SGX) Australian Stock Exchange (ASX) National Stock Exchange of India (NSE) Karachi Stock Exchange (KSE) Philippine Stock Exchange (PSE) Shanghai Stock Exchange (SSE) SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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New Zealand Stock Exchange (NZX) Dubai Stock Exchange (DIFX) African Stock Exchange: Johannesburg Stock Exchange (JSE) New Zealand Stock Exchange (NZX) Johannesburg Stock Exchange (JSE) List of Top Companies of NSE (National Stock Exchange)

Reliance industries ltd. Oil and natural gas corporation ltd. Bharti airtel limited NTPC ltd Reliance Hero Honda motors ltd, Communications ltd. ICICI bank ltd. Infosys technologies ltd. Tata consultancy services ltd,s Bhel, State bank of India, SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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Steel authority of India, Larsen & turbo ltd., Zee entertainment ltd, Indian petrochemicals corporation ltd., Bharat petroleum corporation ltd., Videsh sanchar nigam ltd, Mahan agar telephone nigam ltd, Power grid corporation of India, Reliance energy ltd, Siemens ltd, ACC limited, Ambuja cements ltd, HCL technologies ltd, Hindalco industries ltd, National aluminium co ltd, Sun pharmaceuticals ind., Mahindra & mahindra ltd, TATA power co ltd, Punjab national bank, ITC ltd, SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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Reliance petroleum ltd., HDFC ltd, Wipro ltd, HDFC bank ltd, TATA steel limited, Hindustan unilever ltd. TATA motors limited, Maruti udyog limited

INTRODUCTION OF NSE The National Stock exchange was incorporated for the first time in November, 1992. The national stock exchange was not incorporated as the national stock exchange; rather, it had got the recognition of the recognized stock exchange in April, 1993. The National stock Exchange has increased its trading facilities in June 1994 when the WDM (Wholesale Debt Market Segment) was gone live. It is basically one of the three market segments in which the national stock Exchange works. In the same year, 1994 November, the Capital Market (CM) segment of the stock exchange goes live through VSAT. The National Stock Exchange has become the first Clearing Corporation in India by the introduction of NSCCL in April 1995. In the same year, 1995 July, it has introduced the Investor protection fund which is a very important function introduced by the national Stock Exchange. SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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The National stock Exchange had grown with leaps and bounds and had shown tremendous growth mainly in all the fields and thus making it the largest stock exchange of India by October, 1995. The concept of NSCCL was extended by the introduction of clearing and settlement with the help of NSCCL in year 1996. The National stock Exchange has introduced its Index for the first time in year April 1996. The index was known as the S&P CNX nifty index. In year June 1996, it has introduced the Settlement Guarantee Fund. The National Securities Depositor Fund was launched by the National Stock exchange in year 1996, November, and thus making it the first stock exchange who becomes the first depository in India. National stock exchange (NSE) is India‟s leading stock exchange covering

various cities and

towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The exchange has brought about unparalleled transparency, speeds & efficiency, safety and market integrity. It has set up facilities that Serve a model for the securities industry in terms of systems, practices and procedures. NSE played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state art information technology to provide an efficiency and transparent trading , clearing and settlement mechanism and has witnessed several innovations in products & services viz demutualization of stock exchange governance, screen based trading compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading‟s members, fine-tuned risk management systems, counterparty risks, market of debt and derivatives instruments and intensive use of information technology.

NSE INDEX OR NIFTY: The NSE Index or the Nifty Index as it is popularly known, is the index of the performance of SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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the 50 largest & most profitable, popular companies listed in the index. Each company that is part

of

the

index

has

its

own

weightage

in

the

value

of

the Index. The value of the Nifty Index is the weighted average of the prices of these 50 compani es.

THE ORGANISATION The national stock exchange of the e of India limited has genesis in the report of the high powered study group on establishment of new stock exchanges, which recommended promotion of a national stock exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. based on the recommendations, NSE was promoted by leading financial institution at the behest of the government of India and was incorporated in November 1992 as a tax –paying company unlike other stock exchange in the country. On its recognition as a

stock exchange under the securities contracts(regulation) act,1956 in April

1993, NSE commenced operations in the wholesale debt market (WDM) segment in June 1994. The capital market (equities) segment commenced operations in November 1994 and operations in derivatives segment commenced in June 2000.

MISSION NSE's mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of:

establishing a nation-wide trading facility for equities, debt instruments and hybrids,

Ensuring equal access to investors all over the country through an appropriate communication network. SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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*Providing a fair, efficient and transparent securities market to investors using electronic trading systems, Enabling shorter settlement cycle and book entry settlements systems, and meeting the current international standards of securities markets. The standards set by NSE in terms of market practices and technologies have become industry bench market and being emulated by other market participants. NSE is more than a mere market facilitator. Its that force which is guiding industry to wards new horizons and greater opportunities.

Logo The logo of the NSE symbolizes a single nationwide securities trading facility ensuring equal and fair access to investors, trading members and issuers all over the country. The initials of the Exchange viz., NSE have been etched on the logo and are distinctly visible. The logo symbolizes use of state of the art information technology and satellite connectivity to bring about the change within the securities industry. The logo symbolizes vibrancy and unleashing of creative energy to constantly bring about change through innovation

ABOUT BSE Bombay stock exchange limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as “BSE”. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the government of India under the securities contracts (regulation) act, 1956. The exchange‟s pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons(AOP), the exchange is now a demutualized and corporatized under the SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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provisions of the companies Act,1956, pursuant to the BSE (corporatization and demutualization ) scheme,

2005 notified by the securities and exchange board of India (SEBI). With

demutualization, the trading rights and ownership rights have been de-linked effectively addressing concern regarding perceived and real conflicts of interest. The exchange is professionally managed under the overall direction of the board direction. The board comprises eminent professional‟s, representatives of trading members and the managing director of the exchange. The board is inclusive and is designed to benefits from the participation of market intermediaries.

In terms of organization structure, the board formulates large policy issues and exercises overall control. The committees constituted by the board are board based. The day to day operations of the exchange are managed by the managing directors and a management team of professionals. The exchange has a nation wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth. The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives. The BSE's On Line Trading System (BOLT) Is a proprietary system of the Exchange and is BSE certified. The surveillance and clearing & settlement functions of the exchange are ISO 9001:2000 certified.

BSE INDEX OR SENSEX: The BSE index or the Sensex as it is popularly known, is the index of the performance of the 30 largest & most profitable, popular companies listed in the index. Each company that is part of the index has its own weightage in the value of the index. since the number of companies is lesser , the index variations are higher when compared to the Nifty index.

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LIST OF COMPANIES OF BSE 1.ACC Ltd. Cement and cement products 2.Ambuja Cements Ltd. Cement and Cement Products 3.Bajaj Auto Ltd. Automobiles – 2 and 3 Wheelers 4.Bharat Heavy Electricals Ltd. Electrical Equipment 5.Bharti Airtel Ltd. Telecommunication Services 6.Cipla Ltd. Pharmaceuticals 7.DLF Ltd. Developers/Construction 8.Grasim Industries Ltd. Diversified 9.Housing Development Finance Corporation Ltd. Finance -Housing 10.HDFC Bank Ltd. Banks 11.Hindalco Industries Ltd. Aluminium 12.Hindustan Unilever Ltd. FMCG 13.ICICI Bank Ltd. Banks 14.Infosys Technologies Ltd. Information Technology 15.ITC Ltd FMCG 16.Larsen & Toubro Ltd. Engineering1Mahindra & Mahindra Ltd. Automobile – 4 wheelers 17.Maruti Udyog Ltd. Automobiles 4 wheelers 18.NTPC Ltd. Power 19.Oil & Natural Gas Corporation Ltd. Oil Exploration/Production

Logo of BSE The BSE is a potent symbolism of the Indian

capitalist economy, and is an important landmark

in the financial domain. Till the national stock exchange was found in 1992, the BSE continued to be the center of the Indian corporate world. Its traditional “open outcry” system of trading, SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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with a milling crowd of brokers jostling with each other to make deals, inspired many an aspiring entrepreneur. Over the years, BSE has been pivotal in providing the Indian business in that most vital of resources – Capital. Every Indian corporate worth its salt has tapped the Indian capital market through the exchange, and every major company ha its shares listed on the BSE. A listing on the BSE was considered as the „holy grail‟ in the Indian corporate and business world. BSE lost a substantial amount of reputation after the securities scam perpetrated by harsh ad Mehta, and various scams in the following years have continued to pound its goodwill. Yet, the BSE continues to move from strength to strength, and continues to be the flagship of the Indian capital markets. The location of BSE – dalal street – has become the Indian equivalent of Wall Street.

Bombay Stock Exchange Building

FUNCTIONALITY AND ROLE OF BSE

BSE has pioneered various innovations into the Indian capital market. The BSE Index – called the Sensex is considered the pulse of the Indian capital system and industry. In addition to the main index – the Sensex – BSE also offers several sub-indices and sectorial indices. BSE has also introduced ETF (An Exchange Traded Fund) in collaboration with Hong Kong based Barclays Global Investors. The ETF enables foreign investors to invest in the Indian stock market. BSE has been at the forefront of introducing transparency and successful investor friendliness in the trading of various instruments such as stocks, derivate and debt instruments. It is a global SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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pioneer in achieving the coveted ISO 9001:2000 certification, and the introduction of BOLT – BSE Online Trading System. BOLT is currently available to thousands of traders across the country, and provides access to markets from the computer screens. BSEWEBX, a service introduced in 2001, was first of its kind in the world – and enabled investors to deal in shares and stocks from the comfort of their computers. In addition to the equity market, BSE is also taking important steps to develop the retail debt market. This step will help the common investors to gain access to an alternative investment option, and provide greater diversification opportunities. BSE is also involved in a number of initiatives to educate the investors, monitor the markets and provide training and education on various aspects related to the Indian capital markets.

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CHAPTER -2 REASRCH DESIGN

DESIGN OF THE STUDY A background of the area chosen for study has been presented in the previous chapter. This chapter is devoted for research design. Research design is defined as a particular procedure or a set of procedures, the analysis of principles of the enquiry in a particular field. The value of any scientific and systematic study lies in its methodology. A central part of research design is to develop an effective research strategy. It constitutes the blue print for the collection, measurement and analysis of data.

TITEL OF THE STUDY A Comparative study of NSE & BSE

STATEMENT OF THE PROBLEM India NSE and BSE is growing at a rapid pace, thereby giving an impetus to the Indian economy. The study has been carried out to provide a comparative analysis of 6 companies listed in NSE. SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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OBJECTIVES OF NSE & BSE To gain an insight of national stock exchange and Bombay stock exchange towards the listing procedures To explore the benefit of listing on the stock exchange with a comparative study. To know the recent trends in NSE&BSE To offer suggestions based on the findings arrived from the study LIMITATIONS OF THE STUDY As per the study, it was supposed to collect information from many sub brokers but due to time constraint and physical constraint most of the information was not collected. Analysis and interpretation are purely based on the data collected from various websites. The accuracy of interpretation depends upon accuracy of these data. Data collected for analysis were only for limited period. Hence findings of study can be varying. There are some changes in stock market in daily basis.

METHODOLOGY The methodology used for the implementation of the assigned projects is based on primary data & secondary data & with the help of custom type pie explore chart.

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Research design for the descriptive study is of exploratory type & the forms is given to discover the possible measures by detailed analysis this report also based on descriptive research because it provide the detailed knowledge about the NSE & BSE & its listing procedures.

SOURCES OF DATA PRIMARY DATA SECONDARY DATA

PRIMARY DATA Primary data are those, which are collected directly from the different company investors who are investing in BSE & NSE.

SECONDARY DATA Secondary data is to be used in the research have been collected from various magazines, newspapers, websites, & questionnaires others sources. Research design: descriptive types & analytical type Data collection :secondary data collection method

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CHAPTER SCHEMES

CHAPTER 1: INTRODUCTION CHAPTER 2: RESEARCH DESIGN CHAPTER 3: COMPANY PROFILE CHAPTER 4: DATA ANALYSIS AND INTERPRETATION CHAPTER 5: SUMMARY OF FINDINGS, CONCLUSIONS AND SUGGESTIONS ANNEXURE BIBLIOGRAPHY CHAPTER-3 COMPANY PROFILE

NATIONAL STOCK EXCHANGE National stock exchange (NSE) is India‟s leading stock exchange covering

various cities and

towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The exchange has brought about unparalleled transparency, speeds & efficiency, safety and market integrity. It has set up facilities that serve a model for the securities industry in terms of systems, practices and procedures. NSE played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state art information technology to provide an efficiency and transparent trading , clearing and settlement mechanism and has witnessed several innovations in products &

services demutualization of stock exchange

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governance, screen based trading compression of settlement cycles, dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading‟s members, fine-tuned risk management systems, counterparty risks, market of debt and derivatives instruments and intensive use of information technology. The national stock exchange is India‟s leading stock exchange covering various cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen –based trading system with national reach. The exchange has brought about unparalleled transparency, speed & efficacy safety and market integrity.it has set up facilities that serve a model for the securities industry in terms of systems, practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualization of stock exchange governance,

screen

based

trading,

compression

of

settlement

cycles,

dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, fine –tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology. AWARDS & RECOGNITION OF NSE NSCCL Rated “CCR AAA” for fourth consecutive year - 28th Dec 2011. For fourth consecutive year CRISIL has assigned its highest corporate credit rating of „CCR AAA‟ to the National Securities Clearing Corporation Ltd (NSCCL). 'CCR AAA' rating indicates highest degree of strength with regard to honoring debt obligations. As per CRISIL the rating reflects NSCCL‟s status as Clearing Corporation for NSE. The rating also factors in NSCCL‟s rigorous risk management controls and adequate settlement guarantee cover. CRISIL has further stated that NSCCL‟s risk management system is comprehensive, and is regularly upgraded to pre-empt market failures. The company addresses risks in clearing and SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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settlement with its stringent norms for selection of members, robust margining system, and riskbased position limits and surveillance mechanism. NSE and NSCCL receive Asian Banker awards NSE has been awarded 'The Asian Banker Financial Derivative Exchange of the Year Award" NSCCL has been awarded 'The Asian Banker Clearing House of the Year Award"

ACIEVEMENTS OF NSE The industrial organization is created to meet the demands “trade” essential to the success of the project. With the concern to bring together the expertise and the knowledge strictly necessary, in an optimized configuration, with the qualities of excellence, transparency and respect for all people involved, in an economic efficiency context, functional and technical. NSE is sized to industrialize your projects through the phases of prototype and prototyping, in order to validate the technical solutions considered. NSE implements throughout its projects, a system of risk management related to products, under the supervision of an account manager who will be your main contact. NSE provides a global Project management of its supply chain. NSE selects, assures the follow up and the quotation of its suppliers to ensure the quality of the process supply (mechanical, electronic card, low cost solutions).

Aeronautic

Defense

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CORPORATE STRUCTURE NSE is one of the first de-mutualized stock exchanges in the country, where the ownership and management of the Exchange is completely divorced from the right to trade on it. Though the impetus for its establishment came from policymakers in the country, it has been set up as a public limited company, owned by the leading institutional investors in the country. From day one, NSE has adopted the form of a demutualized exchange - the ownership, management and trading is in the hands of three different sets of people. NSE is owned by a set of leading financial institutions, banks, insurance intermediaries and is managed by professionals, who do not directly or indirectly trade on the Exchange. This has completely eliminated any conflict of interest and helped NSE in aggressively pursuing policies and practices within a public interest framework. The NSE model however, does not preclude, but in fact accommodates involvement, support and contribution of trading members in a variety of ways. Its Board comprises of senior executives from promoter institutions, eminent professionals in the fields of law, economics, accountancy, finance, taxation, etc, public representatives, nominees of SEBI and one full time executive of the Exchange. While the Board deals with broad policy issues, decisions relating to market operations are delegated by the Board to various committees constituted

by it .Such committees include

representatives from trading members, professionals, the public and the management. The dayto-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff. SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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NSE MILESTONES May 13, 2013

NSE launches the first dedicated Debt Platform on the Exchange

January 10, 2013

Agreement on Launch of S&P CNX Nifty Futures in Japan

January 03, 2013

NSCCL Rated CCR AAA for fifth consecutive year

September 18, 2012

NSE launches SME operations

June 27, 2012

NSE launches financial literacy initiative ' Jagruti' in Mohali, in partnership with India Post

May 03, 2012

Futures and Options contracts on FTSE 100

March 22, 2012

NSE and India Post start Unique Financial Inclusion Initiative "Jagruti"

March 14, 2012

NSE launches “EMERGE” - SME Platform NSCCL Rated “CCR AAA” for fourth

December 2011

consecutive year - 28th Dec 2011 Launch of derivatives on CNX PSE and CNX

September 2011

Infrastructure Indices

August 2011

Launch of derivatives on Global Indices

July, 2011 Commencement of trading in 91 Day GOI Treasury Bill – Futures

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MISSION NSE's mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of:

Establishing a nation-wide trading facility for equities, debt instruments and hybrids,

Ensuring equal access to investors all over the country through an appropriate communication network. *Providing a fair, efficient and transparent securities market

to investors

using

electronic trading system, Enabling shorter settlement cycle and book entry settlements systems, and meeting the current international standards of securities markets. The standards set by NSE in terms of market practices and technologies have become industry bench market and being emulated by other market participants. NSE is more than a mere market facilitator. Its that force which is guiding industry to wards new horizons and greater opportunities.

PROMOTERS NSE has been promoted by leading financial institutions, banks, insurance companies and other financial intermediaries: SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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1. Industrial Development Bank of India Limited

2. Industrial Finance Corporation of India Limited

3. Life Insurance Corporation of India

4. State Bank of India

5. ICICI Bank Limited

6. IL & FS Trust Company Limited

7. Stock Holding Corporation of India Limited

8. SBI Capital Markets Limited

9. The Administrator of the Specified Undertaking of Unit Trust of India

10. Bank of Baroda SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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11. Canara Bank

12. General Insurance Corporation of India

13. National Insurance Company Limited

14. The New India Assurance Company Limited

15. The Oriental Insurance Company Limited

16. United India Insurance Company Limited

17. Punjab National Bank

18. Oriental Bank of Commerce

19. Corporation Bank

20. Indian Bank SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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21. Union Bank of India

GROUP OF NSE

National Securities Clearing Corporation Ltd. (NSCCL) The national securities clearing corporation ltd. (NSCCL), a wholly owned subsidiary of NSE, was incorporated in august 1995. It was set up to bring and sustain confidence in clearing and settlement of securities: to promote and maintain, short and consistent settlement cycles; to provide country party risk guarantee, and to operate a tight risk containment system. NSCCL commenced clearing operation on April 1996. N SCCL carries out the clearing and settlement of the trades executed in the equities and derivatives segments and operates subsidiary general ledger (SGL) for settlement of trades in government securities. It assumes the counter party risk of each member and guarantees financial settlement of transactions on other stock exchange like, the over the counter exchange of India NSCCL has successfully brought about an up gradation of the clearing and settlement procedures and has brought Indian financial markets in line with international markets.

NSE.IT Ltd

SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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a 100% subsidiary of National Stock Exchange of India Limited (NSE), is the

information technology arm of the largest stock exchange of the country. A leading edge technology user, NSE houses state-of-the-art infrastructure and skills. NSE.IT possesses the wealth of expertise acquired in the last six years by running the trading and clearing infrastructure of largest stock exchange of the country. NSE .IT is uniquely positioned to provide products, services and solutions for the securities industry. There has been a long felt need for top of the line products, services and solutions in the areas of trading, broker front end and backoffice, clearing and settlement, web- based trading, risk management, treasury management, asset liability management, banking. Insurance ect. NSE.ITs expertise in these areas is the primary focus. The company also plans to provide consultancy and implementation services in the areas of data warehousing, business continuity plans, stratus main frame facility management, site maintenance and backups, real time market analysis & financial news over NSE- Net, ect. NSE.IT is an export oriented unit with STP and plans to go global for various IT service in due course. In the near future the company plans to release new products for broker back office operations and enhance Neat XS / Neat is to support straight through processing on the net.

INDIA INDEX SERVICES & PRODUCTS LTD. (IISL) India index services and products limited (IISL), a joint venture between NSE and CRISIL Ltd.( formerly the credit rating information services of India limited), was set up in May 1998 to provide a variety of indices and index related services and products for the Indian capital markets. It has a consulting and licensing agreement with standard and poor‟s (S &P),the world‟s leading provider of investible equity indicates, for co- branding equity indices. IISL provides a broad range of services, products and professional index services. It maintains over 80 equity SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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indices comprising broad-based benchmark indices, sectorial indices and customized indices. Many investment and risk management products based on IISL indices have been developed in the recent past, within India and abroad. These include index based derivatives traded on NSE and Singapore exchange (SIMEX) and a number of index funds.

National Securities Depository Ltd. (NSDL) In order to solve the myriad problems associated with trading in physical securities, NSE joined hands with the industrial development bank of india (IDBI) and the unit trust of India (UTI) to promote dematerialization of securities. Together they set up national securities depository limited (NSDL), the first depositary in India. NSDL commenced operations in November 1996 and has since established a national infrasture of international standards to handle trading and settlement in dematerialized from and thus completely eliminated the risks to investors associated with fake / bad / stolen paper.

Dot Ex International Limited Dot Ex was formed to provide world class internet trading platforms which allow members of NSE to offer online trading facilities to their customers. Members of NSE can service a larger clientele by using the automated risk management features and thus increase volumes. Investors get comprehensive and updated information necessary to trade, along with a single- click convenience to fulfill their obligations. The initial offering of dot Ex is dot Ex plaza where multiple market participants such as members of NSE, depository participants and banks can offer web- based services to their customers. As a neutral aggregator and infrastructure provider, dot Ex offers choice and convenience to investors. Dot Ex was a joint venture between i-flex solutions ltd. And NSE.IT ltd. Recently NSE has taken over the shareholding and management of dot Ex . SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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Dot Ex product may be classified under the following broad categories; Equity trading module F & O trading module

NSE TECHNOLOGY Across the globe, developments in information, communication and network technologies have created paradigm shifts in the securities market operations. Technology has enable organizations to build new sources of competitive advantages, bring about innovations in

products and

services, and to provide for new business opportunities. Stock exchange all over the world has realized the potential of IT and Have moved over to electronic trading systems, which are cheaper, have wider reach and provide a better mechanism for trade and post trade execution‟s believes that technology will continue to provide the necessary impetus for the organization to retain its competitive edge and ensure timeliness and satisfaction in customer service. In recognized of the fact that technology will continue to redefine the shapes of the securities industry, NSE stresses on innovation and sustained investment in technology to remain a head of competition. NSE‟S set up is the largest by any company in india . it uses satellite communication technology to energies participation from around 400 cities spread all over the country. In the recent past, capacity enhancement measures taken up in regard to the trading systems so as effectively meet the requirements of increase users and associated trading loads. With up gradation of trading hardware, NSE can handle up to 1 million trades per day‟s has also put in place NIBIS ( NSE‟s internet based information system ) for on line real time dissemination of trading information over the internet. In order to.

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EQUITIES OF NSE NSE started trading in the equities segment (capital market segment) on November 3, 1994 and within a short span of 1 year became the largest exchange India in terms of volumes transited. Trading volumes in the equity segment have grown rapidly with average daily turnover increasing from Rs. 17 crores during 1994-95 to Rs. 4,328 crores during 2003 -04. During the year 2003-04, NSE reported a turnover of rs. 1,099,535 crores in the equities segment accounting for 68.60% of the total Indian securities market. The equities section provides you with an insight into the equities segment of NSE ans also provides real- time quotes and statistics of the equities market. In depth information regarding listing of securities, trading systems

&

processes, clearing and settlement, risk management, trading statistics ect. Are available here. .

LISTING OF NSE Listing means admission of securities of an issuer to trading privileges on a stock exchange through a formal agreement. The prime objective of admission to dealing on the exchange is to provide liquidity and marketability to securities, as also to provides a mechanism for effective management of trading. Listing on NSE provides qualifying companies with the broadest access to investors, the greatest market depth and liquidity, SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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Cost effective access to capital, the highest visibility, the fairest pricing, and investor benefits. NSE trading terminals are now situated in various towns across the length the eligibility criteria for listing. Various types of securities of a company are traded under a unique symbols and different series. NSE played an important role in helping an Indian companies access equity capital, by providing a liquid and well- regulated market. NSE has about 800 companies listed representing the length, breadth and diversity of the Indian economy which includes from hi-tech to heavy industry, software, refinery, public-sector units, infrastructure, and financial services. Listing on NSE raises a company‟s profile among investors in India and abroad. Trade data is distributed worldwide through various news-vending agencies. More importantly, each and every NSE listed company is required to satisfy stringent financial, public distribution and management requirements. High listing standards foster investor confidence and also bring credibility into the markets. NSE listed securities in its capital market (equities) segment and its wholesale debt market segment.

LISTING PROCEDURES OF NSE An issuer has to take various steps prior to making an application for listing its securities on the NSE. These steps are essential to ensure the compliance of certain requirement by the issuer before listing its securities on the NSE. The various steps to be taken include:

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1. Initial Discussions 2. Approval of Memorandum and Articles of Association 3. Approval of draft prospectus 4. Submission of Application 5. Listing conditions and requirements

LISTING PROCEDURE

Initial Discussions Authorized persons of the concerned issuer should discussions with NSE personnel regarding various requirements to be fulfilled by the issuer for listing its securities. The discussions should particularly cover the qualifications of the issuer which are required for an issuer to be admitted for listing on the NSE and to understand all the conditions that are precedent to listing on the NSE. The proposed memorandum & articles of Association and the draft prospectus may be presented to the NSE for examination before finalizing them

Approval of draft prospectus The Issuer shall file the draft prospectus and application forms with NSE. In case NSE is not the Regional Stock Exchange then the draft prospectus and application forms have to be filed SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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simultaneously with the NSE when the same is filed with the Regional Stock Exchange pertaining to the issue, for the perusal of NSE. The draft prospectus should have been prepared in accordance with the statutes, notifications, circulars, guidelines, etc. governing preparation and issue of prospectus prevailing at the relevant time. The Issuers may particularly bear in mind the provisions of Companies Act, Securities Contracts (Regulation) Act, the SEBI Act and the relevant subordinate legislations thereto. NSE will peruse the draft prospectus only from the point of view of checking whether the draft prospectus is in accordance with the listing requirements, and therefore any approval given by NSE in respect of the draft prospectus should not

be

construed

as

approval under any laws, rules, notifications, circulars, guidelines etc.

The Issuers shall file a copy of the prospectus given by the respective Regional Stock Exchange with NSE.The Issuer should also submit the SEBI acknowledgment card or letter indicating observations on draft prospectus or letter of offer by SEBI. Submission of Application For issuers listing on NSE for the first time Listing of Further issues by issuers already listed on NSE listing fees security deposit (for new & fresh issues and when NSE is the regional stock exchange) supporting document

Submission of Application (For Issuers listing on NSE for the first time) Issuers desiring to list existing/new securities on the NSE shall make application for admission of their securities to dealings on the NSE in the forms prescribed in

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This regard as per details given hereunder or in such other form or forms as the Relevant Authority may from time to time prescribe in addition thereto or in modification or substitution thereof. Appendix 'A' - Clauses of Articles of Association .Appendix 'B'- Application Letter for Listing. Appendix 'C-1' - Listing Application providing pre-issue details of securities .Appendix 'C-2' - Listing Application providing post-issue details of securities .Appendix 'D'- Checklist for supporting documents ( as applicable to the issuer) Appendix 'E' - Schedule of Distribution Appendix 'F'- Listing Agreement

Submission of Application (Listing of further Issues by Issuers already listed on NSE) Issuers whose securities are already listed on the NSE shall apply for admission to listing on the NSE of any further issue of securities made by them. The application for admission shall be made in the forms prescribed in this regard or in such other form or forms as the Relevant Authority may from time to time prescribe in addition thereto or in modification or substitution thereof. Appendix 'E' - Schedule of Distribution Appendix 'G'- Application Letter for Listing of further issues. Kindly draw your Cheques/Demand Drafts favoring National Stock Exchange of India Limited, payable in Mumbai. Listing Procedure

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Submission of Application (Security Deposit)

(Payable only for new and fresh issues and only when NSE is the Regional Stock Exchange)The Relevant Authority shall not grant admission to dealings of securities of an Issuer which is not listed or of any new (original or further) issue of securities of an Issuer excepting Mutual Funds, which is listed on the NSE unless the Issuer deposits and keeps deposited with the NSE (in cases where the securities are offered for subscription, whether through the issue of a prospectus, letter of offer or otherwise, and NSE is the Regional Stock Exchange for the Issuer) an amount calculated at 1% of the amount of securities offered for subscription to the public and or to the holders of existing securities of the Issuer, as the case may be for ensuring compliance by the Issuer within the prescribed or stipulated period of all requirements and conditions hereinafter mentioned and shall be refundable or forfeitable in the manner hereinafter stated: The Issuer shall comply with all prevailing requirements of law including all requirements of and under any notifications, directives and guidelines issued by the Central Government, SEBI or any statutory body or local authority or any body or authority acting under the authority or direction of the Central Government and all prevailing listing requirements and conditions of the NSE and of each recognized Stock Exchange where the Issuer has applied for permission for admission to dealings of the securities, within the prescribed or stipulated period; If the Issuer has complied with all the aforesaid requirements and conditions including, wherever applicable, its obligation under Section 73(or any

statutory

modification or re-enactment thereof) of the Companies Act, 1956 and obligations arising therefrom, within the prescribed or stipulated period, and on obtaining a No Objection Certificate from SEBI and submitting it to NSE , NSE shall refund to the Issuer the said deposit without interest within fifteen days from the expiry of the prescribed or stipulated period;

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If on expiry of the prescribed or stipulated period or the extended period referred to hereafter, the Issuer has not complied with all the aforesaid requirements and conditions, the said deposit shall be forfeited by the NSE, at its discretion, and thereupon the same shall vest in the NSE. Provided the forfeiture shall not release the Issuer of its obligation to comply with the aforesaid requirements and conditions;

If Issuer is unable to complete compliance of the aforesaid requirements and conditions within the prescribed or stipulated period, the NSE, at its discretion and if the Issuer has shown sufficient cause, but without prejudice to the obligations of the Issuer under the laws in force to comply with any such requirements and conditions within the prescribed or stipulated period, may not forfeit the said deposit but may allow such further time to the Issuer as the NSE may deem fit; provided that;

the Issuer has at least ten days prior to expiry of the prescribed or stipulated period applied in writing for extension of time to the NSE stating the reasons for non-compliance, and

the Issuer, having been allowed further time by the NSE, has before expiry of the prescribed or stipulated period, published in a manner required by the NSE, the fact of such extension having been allowed; provided further that where the NSE has not allowed extension in writing before expiry of the prescribed or stipulated period, the request for extension shall be deemed to have been refused; provided also that any such extension shall not release the Issuer of its obligations to comply with the aforesaid requirements and conditions 50% of the above mentioned security deposit should be paid

to the NSE in cash. The balance amount can be provided by way of a

bank guarantee, in the format prescribed by or acceptable to NSE. The amount to be paid in cash is limited to Rs.3 crores.

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Submission of Application (Supporting Documents) Issuers applying for admission of their securities to dealings on the NSE shall submit to the NSE the following:

• Documents and Information The documents and information prescribed in Appendix D or Appendix I (as the case may be) to this Regulation or such other documents and information as the Relevant Authority may from time to time prescribe, in addition thereto or in modification or substitution thereof together with any other documents and information which the Relevant Authority may require in any particular case;

• Distribution Schedules Distribution Schedules duly completed in respect of each class and kind of security in the form prescribed in Appendix E (Table I, II & III) to this Regulation or in such other form or forms as the Relevant Authority may from time to time prescribe in addition thereto or in modification or substitution thereof.

Listing conditions and requirements All Issuers whose securities are listed on the NSE shall comply with the listing conditions and requirements contained in the Listing Agreement Form appearing in Appendix F to this SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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Regulation or such other conditions and requirements as the Relevant Authority may from time to time prescribe in addition thereto or in modification or substitution thereof. After fulfilling these criteria, a company has to send the following information for further processing: 1. A brief note on the promoters and management 2. Company profile. 3. Copies of the Annual Report for last 3 years. 4. Copies of the Draft Offer Document. 5. Memorandum & Articles of Association

BORD OF DIRECTORS OF NSE Chairman

Mr. S.B Mathur Administrator of the specified under taking of unit trust of india

Managing director

Mr,Ravi Narain national stock exchange of india ltd

Deputy managing director

Ms.chitra ram krish National stock exchange of india ltd

ABOUT BSE Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share &Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market

is

widely

recognized

and

its

index,

SENSEX ,

is tracked worldwide. Earlier an Association of Persons(AOP), the Exchange is now a demutuali zed and corporatized entity incorporated under the provisions of the Companies Act, 1956,pursua nt to the BSE(Corporatization and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).With demutualization, the trading rights and ownership rights have

been

de-linked

effectively

addressing

concerns

regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. T he Board comprises eminent professionals, representatives of

Trading

Members

and

the

Managing Director of the Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries. In terms of organization structure, the Board formulates larger policy issues and exercises overall control. The committees constituted by the Board are broad-based. The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth. The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives. The BSE's On Line Trading System (BOLT) Is a proprietary system of the Exchange and is BS certified. The surveillance and clearing & settlement functions of the Exchange are ISO9001:2000 certified.

AWARDS & RECOGNITIONS As a pioneering financial institution in the Indian capital market, BSE has won several awards and recognitions that acknowledge the work done and progress made. SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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The Golden Peacock Global CSR Award for its initiatives in Corporate Social Responsibility BSE has won NASSCOM - CNBC-TV18‟s IT User Awards, 2010 in Financial Services category BSE has won Skoch Virtual Corporation 2010 Award in the BSE StAR MF category Responsibility Award (CSR), by the World Council of Corporate Governance Annual Reports and Accounts of BSE have been awarded the ICAI awards for excellence in financial reporting for four consecutive years from 2006 onwards Human Resource Management at BSE has won the Asia - Pacific HRM awards for its efforts in employer branding through talent management at work, health management at work and excellence in HR through technology

ACHIEVEMENTS OF BSE At par with international standards, BSE Ltd. has been a pioneer in several areas over the decades and has many firsts and key achievements to its credit. BSE is the first exchange in India to Launch a special platform for trading in SME securities Introduce Equity Derivatives Launch a Free Float Index - S&P BSE SENSEX Launch Exchange Enabled Internet Trading Platform Obtain ISO certification for a stock exchange Exclusive facility for financial training – BSE Institute Ltd. Launch its website in Hindi and regional languages SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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Host the popular opening-bell ceremony in Indian capital markets Launch mobile-based trading in India in Sept 2010 Become securities market infrastructure member of SWIFT in India and provide corporate actions to custodians in ISO 15022 format Launched S&P BSE SENSEX Realized S&P BSE Volatility (REALVOL) Index in Nov 2010

HERITAG OF BSE The oldest exchange in Asia and the first exchange in the country to be granted permanent recognition under the Securities Contract Regulation Act, 1956, Bombay Stock Exchange Limited (BSE) has had an interesting rise to prominence over the past 130 years. While the BSE is now synonymous with Dalal Street, it wasn‟t always so. In fact the first venues of the earliest stock broker meetings in the 1850s were amidst rather natural environs - under banyan trees - in front of the Town Hall, where Horniman Circle is now situated. A decade later, the brokers moved their venue to another set of foliage, this time under banyan trees at the junction of Meadows Street and Mahatma Gandhi Road. As the number of brokers increased, they had to shift from place to place, and wherever they went, through sheer habit, they overflowed in to the streets. At last, in 1874,found a permanent place, and one that they could, quite literally, call their own. The new place was, aptly, called Dalal Street. The is as eventful and interesting as the history of India‟s securities market. India‟s biggest bourse, in terms of listed companies and market capitalization, BSE has played a pioneering role in the Indian securities market- one of the oldest in the world. Much before actual legislations were enacted, BSE had formulated SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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comprehensive set of Rules and Regulations for the Indian Capital Markets. It also laid down best practices adopted by the Indian capital markets after India gained its independent. Perhaps, there would not be any leading corporate in India, which has not sourced BSE‟s services in resource mobilization‟s as a brand is synonymous with capital markets in India. The BSESENSEX is the benchmark equity index that reflects the robustness of the economy and finance. At par with international standards, BSE has been a pioneer in several areas. It has several firsts to its credit even in an intensely competitive environment. First in India to introduce Equity Derivatives First in India to launch a Free Float Index First in India to launch US$ version of BSE Sensex First in India to launch Exchange Enabled Internet Trading Platform First in India to obtain ISO certification for surveillance, clearing & settlement. 'BSE On-Line Trading System‟ (BOLT) has been awarded the globally recognized the Information Security Management System standardBS7799-2: 2002. First to have an exclusive facility for financial training Moved from Open Outcry to Electronic Trading within just 50 days An equally important accomplishment of BSE is the launch of a nationwide investor awareness campaign - Safe Investing in the Stock Market - under which nationwide awareness campaigns and dissemination of information through print and electronic medium was undertaken. BSE also actively promoted the securities market awareness campaign of the Securities and Exchange Board of India. In 2002, the name The Stock Exchange, Mumbai, was changed to BSE. BSE ,which had introduced securities trading in India, replaced its open outcry system of trading in 1995, when the totally automated trading through the BSE Online trading (BOLT) system was put into practice. The BOLT network was expanded, nationwide, in 1997. It was at the BSE's International Convention Hall that India‟s 1st Bell ringing ceremony in the history Capital Markets were held on February 18th, 2002. It was the listing ceremony of Bharti Tele ventures Ltd. BSE with its long history of SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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capital market development is fully geared to continue its contributions to further the growth of the securities markets of the

country, thus helping India increase its sphere of influence in

international financial markets. For the premier Stock Exchange that pioneered the stock broking activity in India, 125 years of experience seem to be a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called "Bombay Stock Exchange Limited" by paying a princely amount of Re1.Since then, the stock market in the country has passed through both good and bad periods. The journey in the 20th century has not been an easy one. Till the decade of eighties, there was no measure or scale that could precisely measure the various ups and downs in the Indian stock market. Bombay Stock Exchange Limited (BSE) in 1986 came out with a Stock Index that subsequently became the barometer of the Indian Stock Market. BSE-SENSEX, first compiled in 1986 is a "Market Capitalization-Weighted “index of 30 component stocks representing a sample of large, well-established and financially sound companies. The base year of BSE-SENSE. Is 1978-79. The index is widely reported in both domestic and international markets through print as well as electronic media. BSE-SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. The "Market Capitalization Weighted" Methodology is a widely followed index construction methodology on which majority of global equity benchmarks are based. The growth of equity markets in India has been phenomenal in the decade gone by. Right from early nineties the stock market witnessed heightened activity in terms of various bull and bear runs. More recently, the bourses in India witnessed a similar frenzy in the 'TMT' sectors. The BSE-SENSEX captured all these happenings in the most judicial manner. One can identify the booms and bust of the Indian equity market through BSESENSEX. The launch of BSE-SENSEX in 1986 was later followed up in January 1989by introduction of BSE National Index (Base: 1983-84 = 100). It comprised of 100 stocks listed at five major stock exchanges in India at Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE National Index was renamed asBSE-100 Index from October 14, 1996 and since then it is calculated taking into consideration only the prices of stocks listed at BSE.

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BROAD OF DIRECTORS OF BSE Non executive chairman

Mr. jag dish Capoor Chairman, HDFC bank

MD & CEO

Mr. Rajnikant Patel

LISTING OF SECURITIES OF BSE LISTING OF SECURITIES Listing means admission of the securities to dealings on a recognized stock exchange. The securities may be of any public limited company, Central or State Government, quasigovernmental and other financial institutions/corporations, municipalities, etc. The objectives of listing are mainly to : provide liquidity to securities; mobilize savings for economic development;

Protect interest of investors by ensuring full disclosures. The Exchange has a separate Listing Department to grant approval for listing of securities of companies in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of the Exchange. A company intending to have its SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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securities listed on the Exchange has to comply with the listing requirements prescribed by the Exchange. Some of the requirements are as under: Minimum Listing Requirements for new companies Minimum Requirements for companies delisted by this Exchange seeking relisting of this Exchange Minimum Requirements for companies delisted by this Exchange seeking relisting of this Exchange Permission to use the name of the Exchange in an Issuer Company‟s prospectus Submission of Letter of Application Allotment of Securities Trading Permission Requirement of 1% Security Payment of Listing Fees Compliance with Listing Agreement "Z" Group Cash Management Services (CMS) - Collection of Listing Fees.

Minimum listing requirements for new companies

Minimum Capital:

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New companies can be listed on the Exchange, if their issued &subscribed equity capital after the public issue is Rs.10 crores. In addition to this the issuer company should have a post issue net worth (equity capital + free reserves excluding revaluation reserve) of Rs.20 crores.

For new companies in high technology ( i.e. Information technology, internet E commerce telecommunication, media including advertisement, Entertainment. The following criteria will be applicable regarding threshold limit:

1.The total income/sales from the main activity, which should be in the field of information technology, internet, e-commerce,

telecommunication,

media

including

advertisement, entertainment etc. should not be less than 75% of the total income during the two immediately preceding years as certified by the Auditors of the company.

The minimum post-issue paid-up equity capital should be Rs.5Crores

The minimum market capitalization should be Rs.50 Crores. (The capitalizations will be calculated by multiplying the post issue subscribed number of equity shares with the Issue price). Post issue net worth (equity capital + free reserves excluding revaluation reserve) of Rs.20 Crores.

(b) Minimum public offer:

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As per Rule 19(2) (b) of the Securities Contracts (Regulation) Rules, 1957,securities of a company can be listed on a Stock Exchange only when at least25% of each class or kind of securities is offered to the public for subscription. In case of IPOs by unlisted companies in the IT & entertainment sector, at least10% of the securities issued by the company may be offered to the public subject to the following: Minimum 20 lac securities are offered to the public (excluding reservation, firm allotment and promoters contribution) The size of the offer to the public is minimum 50 crores.

For this purpose, the term "offered to the public" means only the portion offered to the public and does not include reservations of securities on firm or competitive basis. SEBI may, however, relax this condition on the basis of recommendations of stock exchange(s), only in respect of a Government company defined under Section 617 of the Companies Act, 1956.

Minimum listing requirements for companieslisted on other stock exchanges

The Governing Board of the Exchange at its meeting held on 6th August, 2002 amended the direct listing norms for companies listed on other stock exchange and seeking listing at BSE. These norms are applicable with immediate effect.

The company should have minimum issued and paid up equity capital of Rs. 3 crores.

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The Company should have profit making track record for last three years. The revenues/profits arising out of extra ordinary items or income from any source of non-recurring nature should be excluded while calculating distributable profits.

Minimum net worth of Rs. 20 crores (net worth includes Equity capital and free reserves excluding revaluation reserves).

Minimum market capitalizations of the listed capital should be at least two times of the paid up capital. The company should have a dividend paying track record for the last 3consecutive years and the minimum dividend should be at least 10%.

Minimum Requirements for companies delisted by this Exchange seeking relisting of this Exchange SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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The companies delisted by this Exchange and seeking relisting are required to make a fresh public offer and comply with the prevailing SEBI's and BSE's guidelines regarding initial public offerings.

[IV] Permission to use the name of the Exchange in an Issuer Company's prospectus The Exchange follows a procedure in terms of which companies desiring to list their securities offered through public issues are required to obtain its prior permission to use the name of the Exchange in their prospectus or offer for sale documents before filing the same with the concerned office of the Registrar of Companies. The Exchange has since last three years formed a "Listing Committee" to analyses draft prospectus/offer documents of the companies in respect of their forthcoming public issues of securities and decide upon the matter of granting them permission to use the name of "Bombay Stock Exchange Limited" in their prospectus/offer documents. The committee evaluates the promoters, company, project and several other factors before taking decision in this regard.

[V] Submission of letter of application As per Section 73 of the Companies Act, 1956, a company seeking listing of its securities on the Exchange is required to submit a Letter of Application to all the Stock Exchanges where it proposes to have its securities listed before filing the prospectus with the Registrar of Companies.

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[VI] Allotment of securities As per Listing Agreement, a company is required to complete allotment of securities offered to the public within 30 days of the date of closure of the subscription list and approach the Regional Stock Exchange, i.e. Stock Exchange nearest to its Registered Office for approval of the basis of allotment. In case of Book Building issue, Allotment shall be made not later than 15 days from the closure of the issue failing which interest at the rate of 15% shall be paid to the investors.

[VII] Trading permission As per Securities and Exchange Board of India Guidelines, the issuer company should complete the formalities for trading at all the Stock Exchanges where the securities are to be listed within 7 working days of finalization of Basis of Allotment. A company should scrupulously adhere to the time limit for allotment of all securities and dispatch of Allotment Letters/Share Certificates and Refund Orders and for obtaining the listing permissions of all the Exchanges whose names are stated in its prospectus or offer documents. In the event of listing permission to a company being denied by any Stock Exchange where it had applied for listing of its securities, it cannot proceed with the allotment of shares. However, the company may file an appeal before the Securities and Exchange Board of India under Section 22 of the Securities Contracts (Regulation) Act,1956.

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[VIII] Requirement of 1% security The companies making public/rights issues are required to deposit 1% of issue amount with the Regional Stock Exchange before the issue opens. This amount is liable to be forfeited in the event of the company not resolving the complaints of investors regarding delay in sending refund orders/share certificates, non-payment of commission to underwriters, brokers, etc.

[IX] Payment of listing fees All companies listed on the Exchange have to pay Annual Listing Fees by the30th April of every financial year to the Exchange as per the Schedule of Listing Fees prescribed from time to time. The schedule of listing fees for the year 2004-2005, prescribed by the Governing Board of the Exchange and approved by the Securities and Exchange Board of India is given hereunder:

[X] Compliance with listing agreement

The companies desirous of getting their securities listed are required to enter into an agreement with the Exchange called the Listing Agreement and they are required to make certain disclosures and perform certain acts. As such, the agreement is of great importance and is executed under the common seal of accompany. Under the Listing Agreement, a company undertakes, amongst other things, to provide facilities for prompt transfer, registration, subdivision and consolidation of securities; to give proper notice of closure of transfer books and record dates, to forward copies of unabridged Annual Reports and Balance Sheets to the shareholders, to file Distribution Schedule with the Exchange annually; to furnish financial results on a quarterly basis; intimate promptly to the Exchange the happenings which are likely to materially affect the financial performance of the Company and its stock prices, to comply with the conditions of Corporate Governance, etc. The Listing Department of the Exchange monitors the compliance of the companies with the provisions of the Listing Agreement, SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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especially with regard to timely payment of annual listing fees, submission of quarterly results, requirement of minimum number of shareholders, etc. and takes penal action against the defaulting companies.

[XI] "Z" Group

The Exchange has introduced a new category called "Z Group" from July 1999for companies who have not complied with and are in breach of provisions of the Listing Agreement. The number of companies placed under this group as at the end of May, 2001 was 1,475.

The number of companies listed at the Exchange as at the end of May 2001 was5,874.This is the highest number among the Stock Exchanges in the country and in the world.

New Direct Listing norms The Governing Board of the Exchange at its meeting held on 6th August, 2002amended the direct listing norms for companies listed on other Stock Exchange(s) and seeking listing at BSE. These norms are applicable with immediate effect. 1.The company should have minimum issued and paid up equity capital of Rs.3 crores.

2.The Company should have profit making track record for last three years. The revenues/profits arising out of extra ordinary items or income from any source of non-recurring nature should be excluded while calculating distributable profits.

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3.Minimum net worth of Rs. 20 crores (net worth includes Equity capital and free reserves excluding revaluation reserves)

.4.Minimum market capitalization of the listed capital should be at least two times of the paid up capital.

[XII] Cash management services (cms) - collection of listing fees As a further step towards simplifying the system of payment of listing fees, the Exchange has entered into an arrangement with HDFC Bank for collection of listing fees, from 141 locations, situated all over India. Details of the HDFC Bank branches, are available on our website site www.bseindia.comas well as on the HDFC Bank website www.hdfcbank.com The above facility is being provided free of cost to the Companies. Companies intending to utilize the above facility for payment of listing fee would be required to furnish the information, (mentioned below) in the Cash Management Cash Deposit Slip. The Cheque should be drawn in favor of Bombay Stock Exchange Limited , and should be payable, locally .Companies are requested to mention in the deposit slip, the financial year(s) for which listing fee is being paid. Payment made through any other slips would not be considered. The above slips will have to be filled in quadruplicate. One acknowledged copy would be provided to the depositor by the HDFC Bank.

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CHAPTER -4 DATE ANALYSIS & INTERPATION

DATA ANALYSIS Data analysis is a practice in which is ordered and organized so that useful information can be extracted from it. The process of organizing and thinking about data is a key to understanding what the data does and does not contain. There are a variety of ways in which people can approach data analysis, and it is notoriously easy to manipulate data during the analysis phase to push certain conclusions or agendas. For this reason, it is important to pay attention when data analysis is presented, and to think critically about the data and the conclusions which were drawn. DATA INTERPRETATION The analysis of the data via statistical measures and/or narrative themes should provide answers to the assessment questions. Interpreting the analyzed data from the appropriate perspective allows for determination of the significance and implications of the assessment.

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Table – 4.1 Table showing the information about the age group

Age

No of respondents

Percentage

15 to 25

25

25 %

25 to 30

35

35 %

30 above

40

40 %

Total

100

100 %

ANALYSIS The above table 25 % of the respondents to the age group of 15 to 25, 35 % are between 25 to 30 years, 40 % are belong to 30 above years .

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Graph - 4.1 Graph showing the information about the age group

40 35 30 25 Series1

20 15 10 5 0 15 to 25

25 to 30

30 above

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INTERPRETATION The above graph are majority of respondents are in the age group of above 30 years .

Table – 4.2 Table showing information about the occupation

Occupation

NO of respondents

Percentage

Business service

55

55%

Student

45

45 %

Total

100

100 %

ANALYSIS The above table 55% of the respondents is business service, 45 %of the respondents are student others. SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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Graph- 4.2 Graph showing the information about the occupation

Student , 45 Business service, 55

INTERPRETATION SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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The table is showing the majority of the respondents are in the employees

business

services.

Table – 4.3 Table showing the investing in NSE & BSE

Respondents

No of respondents

Percentage

Yes

50

50 %

No

50

50%

Total

100

100 %

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ANALYSIS The above table is 45 % of investing of NSE & BSE is YES, 55 % of respondents is NO.

Graph – 4.3 Graph showing the investing in NSE & BSE

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50%

No

50%

INTERPRETATION The graph we can infer that 50 % of respondents are investing in NSE & BSE.

Table - 4.4

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A COMPARATIVE STUDY OF NSE AND BSE Table showing percentage of your investment is invested in NSE & BSE

Category

No of respondents

Percentage

Less than 25 % 25-50%

40

40 %

51-75% more than75 %

60

60 %

Total

100

100 %

ANALYSIS The above table showing the 40 % of the respondents is less than 25 % 25- 50 %, 60 % of the respondents is 51- 75 % more than 75 %.

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A COMPARATIVE STUDY OF NSE AND BSE Graph-4.4

Graph showing the percentage of your investment is invested in NSE & BSE

60 50 40

Less than 25 % 25-50% 51-75% more than75 %

30 20 10

51-75% more than75 % Less than 25 % 25-50%

0 1

2

INTERPRETATION The graph showing the majority of respondents is 51- 75 % more than 75 %.

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T able - 4.5 Table showing how long you are investing in NSE & BSE

Category

Less than 1 year or 1 to 2 years

2 to 3 year or more than 3 year

Total

No of respondents

Percentage

35

35 %

65

65 %

100

100 %

ANALYSIS The above table showing that out of 100 respondents, 35% of them are investing in NSE & BSE for the period less than 1 year or 1 to 2 years.

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Graph – 4.5 The graph showing how long you are investing in NSE & BSE

70% 60% 50% 40% 2 to 3 year more than 3 year 30% 20% 10% 0% 1

2

INTERPRETATION SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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The above graph it shows that the majority are 65 %respondents are from 2 to 3 year more than 3 year.

Table -4.6 Table showing the do you invest in NSE & BSE

Category

No of respondents

Percentage

For quick short term gain

60

60 %

For high long term gain

40

40 %

Total

100

100 %

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ANALYSIS The above this table showing the out of 100 respondents, 60 % of for quick short term gain, 40 % of respondents is for high long term gain.

Graph - 4.6 Graph showing how long you are investing in NSE & BSE

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60

50 40 For quick short term gain

30

For high long term gain 20 10 0 1 2

INTERPRETATION The graph showing that the majority are 60 % respondents for quick short term gain.

Table – 4.7 Table showing the attracts you towards stock exchange market

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Category

No of respondents

Percentage

High return

18

18 %

Speculation

25

25 %

Dividend

35

35 %

Liquidity of invested fund

22

22 %

Total

100

100

ANALYSIS The

above table showing

100 respondents, 18 % high return of respondents, 25 %

speculation,35 % dividend, & 22 % liquidity of invested fund.

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A COMPARATIVE STUDY OF NSE AND BSE Graph – 4.7 Graph showing the attracts you towards stock exchange market

35 30 25 20 Series1

15

Series2

10 5 0 High return

Speculation

Dividend

Liquidity of invested fund

INTERPRETATION The graph showing majority are 35 % respondents is dividend .

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Table - 4.8 Table showing the purpose of investment

Category

No of respondents

Percentage

To meet the cost of inflation

25

25 %

34

34 %

20

20 %

uncertain future

21

21 %

Total

100

100 %

To

earn

return

on

idle

resources

To generate a specified sure of money for a specific goal in life

To make a provision for an

ANALYSIS SRI GOKULA COLLEGE OF ARTS ,SCIENCE & MANAGEMENT STUDIES (PG BLOCK)KOLAR

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The above table showing 100 respondents, 25 % to meet the of inflation, 34 % to earn return on idle resources, 20 % to generate a specified sure of money for a specific goal in life, 21 % to make a provision for an uncertain future.

Graph - 4.8 Graph showing the purpose of investment

40 35 30 25 20 15

Series1

10 5 0 To meet the cost of inflation

To earn return To generate a To make a on idle specified sure provision for resources of money for a an uncertain specific goal in future life

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INTERPRETATION

The graph showing majority are 34 % respondents are to earn on idel resources.

Table – 4.9 Table showing the how much is your total investing annually

Category

No of respondents

Percentage