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Various Stock Exchanges In India - BSE, NSE and OTCEI

square 1. Bombay Stock Exchange BSE

BSE is the leading and the oldest stock exchange in India as well as in Asia. It was established in 1887 with the formation of "The Native Share and Stock Brokers' Association". BSE is a very active stock exchange with highest number of listed securities in India. Nearly 70% to 80% of all transactions in the India are done alone in BSE. Companies traded on BSE were 3,049 by March, 2006. BSE is now a national stock exchange as the BSE has started allowing its members to set-up computer terminals outside the city of Mumbai (former Bombay). It is the only stock exchange in India which is given permanent recognition by the government. At present, (Since 1980) BSE is located in the "Phiroze Jeejeebhoy Towers" (28 storey building) located at Dalal Street, Fort, Mumbai. Pin code - 400021.

Bombay Stock Exchange BSE

Image Credits © Vikram Walia.

In 2005, BSE was given the status of a full fledged public limited company along with a new name as "Bombay Stock Exchange Limited". The BSE has computerized its trading system by introducing BOLT (Bombay On Line Trading) since March 1995. BSE is operating BOLT at 275 cities with 5 lakh (0.5 million) traders a day. Average daily turnover of BSE is near Rs. 200 crores.

square 2. National Stock Exchange NSE

Formation of National Stock Exchange of India Limited (NSE) in 1992 is one important development in the Indian capital market. The need was felt by the industry and investing community since 1991. The NSE is slowly becoming the leading stock exchange in terms of technology, systems and practices in due course of time. NSE is the largest and most modern stock exchange in India. In addition, it is the third largest exchange in the world next to two exchanges operating in the USA.

National Stock Exchange NSE

Image Credits © Wikimedia.

The NSE boasts of screen based trading system. In the NSE, the available system provides complete market transparency of trading operations to both trading members and the participates and finds a suitable match. The NSE does not have trading floors as in conventional stock exchanges. The trading is entirely screen based with automated order machine. The screen provides entire market information at the press of a button. At the same time, the system provides for concealment of the identify of market operations. The screen gives all information which is dynamically updated. As the market participants sit in their own offices, they have all the advantages of back office support, and facility to get in touch with their constituents.

  1. Wholesale debt market segment,
  2. Capital market segment, and
  3. Futures & options trading.

square 3. Over The Counter Exchange of India OTCEI

The OTCEI was incorporated in October, 1990 as a Company under the Companies Act 1956. It became fully operational in 1992 with opening of a counter at Mumbai. It is recognised by the Government of India as a recognised stock exchange under the Securities Control and Regulation Act 1956. It was promoted jointly by the financial institutions like UTI, ICICI, IDBI, LIC, GIC, SBI, IFCI, etc.

Over The Counter Exchange of India OTCEI

Image Credits © Siddhartha Shukla.

The Features of OTCEI are :-

  1. OTCEI is a floorless exchange where all the activities are fully computerised.
  2. Its promoters have been designated as sponsor members and they alone are entitled to sponsor a company for listing there.
  3. Trading on the OTCEI takes place through a network of computers or OTC dealers located at different places within the same city and even across the cities. These computers allow dealers to quote, query & transact through a central OTC computer using the telecommunication links.
  4. A Company which is listed on any other recognised stock exchange in India is not permitted simultaneously for listing on OTCEI.
  5. OTCEI deals in equity shares, preference shares, bonds, debentures and warrants.
  6. The Participants of OTCEI are :-
    1. Members and dealers appointed by OTCEI,
    2. Companies whose securities are listed,
    3. Investors who trade in the OTCEI,
    4. Registrar who keeps custody of scrip certificates,
    5. Settlement Bank which clears the payment between counters, and
    6. SEBI and Government who supervise and regulate the working.

This was a brief outline of the various Stock Exchanges in India.

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