Group Members: Manjunath Ronald Jacinta Carl Jaquline

GROUP MEMBERS
Manjunath
Ronald
Jacinta
Carl
jaquline
BOMBAY STOCK EXCHANGE
•BOMBAY STOCK EXCHANGE IS THE
OLDEST STOCK EXCHANGE IN ASIA
WITH RICH HERITAGE
•IT SPANS OVER THREE CENTURIES

WITH 133 YEARS OF EXISTENCE
•BSE WAS EXTABLISHED AS “THE

NATIVE SHARE AND STOCK BROKERS
ASSOCIATION” IN 1875
FEATURES
SALIENT FEATURES
PERMANENT RECOGNITION
EARLIER OPEN OUTCRY SYETEM NOW BOLTS
T+1 = TRANSACTION + 1 DAY
EARLIER AOP NOW LTD COMPANY

(CORPORAISATION AND DEMUTUALISATION)
STRATEGIC PARTNERS
SALIENT FEATURES
NATIONWIDE REACH IN MORE THAN 359 CITIES
FIRST EXCHANGE IN INDIA TO OBTAIN

ISO 9001:2000 CETIFICATION
FIRST EXCHANGE IN COUNTRY TO OBTAIN

INFORMATION SECURITY MANAGEMENT SYSTEM
STANDARD BS 7799-2-2002 CERTIFICATION
WEBSITE IN GUJRATI AND HINDI

BSE INDEX
FEATURES OF SENSEX
SENSEX IS A VALUE WEIGHTED INDEX
COMPOSED OF 30 STOCKS REPRESENTING

VARIOUS SECTORS
THESE COMPANIES ACCOUNTS FOR ONE FIFTH

OF MARKET CAPITALIZATION
BASE VALUE OF SENSEX IS 100 (APRIL 1,1979)

BASE YEAR (1978-79)
FEATURES OF SENSEX
FREE FLOAT CAPITALIZATION METHOD
ICONIC STATURE-TRACKED WORLDWIDE
INDEX COOPERATION AGREEMENT WITH

DEUTSCHE BORSE HAS MADE SENSEX AVAILABLE
TO INVESTORS IN EUROPE AND AMERICA
ALSO AVAILABLE IN HONG KONG

30 COMPANIES OF SENSEX
ACC HDFC BANK ITC ONGC SUN
PHARMA
AIRTEL HERO JAIPRAKASH RELIANCE TATA

HONDA AS MOTORS
BHEL HINDALCO L&T REL COMMU TATA

POWER
DLF HUL MAH N MAH REL INFRA TATA STEEL
GRASIM ICICI BANK MARUTI SUZ SBI TCS
HDFC INFOSYS NTPC STRELITE WIPRO

SIGNIFICANCE
Barometer of Business climate.
Facilitates capital formation.
Domestic Market/ Institutions.
FIIs.
FDIs.
Likely to lead to boom in other asset classes as the
profits get ploughed.
FEATURES
NSE has a market capitalization of around Rs
47,01,923 crore (7 August 2009) and is expected to
become the biggest stock exchange in India in terms
of market capitalization by 2009 end.
NSE is mutually-owned by a set of leading financial

institutions, banks, insurance companies and other
financial intermediaries in India but its ownership
and management operate as separate entities[3]
FEATURES
As of 2008, the NSE VSAT terminals, 2799 in total,
cover more than 1500 cities across India
There are at least 2 foreign investors NYSE Euronext

and Goldman Sachs who have taken a stake in the NSE
It is the second fastest growing stock exchange in the

world with a recorded growth of 16.6%
1587 is number of listings.
OBJECTIVES
Establishing nationwide trading facility
Ensuring equal access to investors
Providing fair, efficient & transparent securities
market using electronic trading system
Enabling shorter settlement cycles and book entry
settlements
Meeting International benchmarks and standards
Screen Based Trading System
(SBTS)
MARKET PHASES
Opening
Open Phase
Market Close
Surcon
Markets
Equity
Futures and Options
Wholesale Debt Market
Currency futures
ETF’S
Interest rate futures

What is the NSE CNX S&P Nifty 50?
FEATURES
NIFTY 50 IS A VALUE WEIGHTED INDEX
COMPOSED OF 50 STOCKS REPRESENTING
VARIOUS SECTORS
THESE COMPANIES ACCOUNTS FOR 77% of all the
trading volume on the NSE and 60% of the total
market capitalization.
The index started with a base value of 1000 on
November 3, 1995 and is calculated using the free float
method which takes in account of market
capitalization.
COMPONENTS OF THE NIFTY 50
ABB Dr. Hero Larsen & Power Satyam TCS
Reddy's Honda Toubro Grid
ACC Hindalco MTNL PNB Tata
GAIL India Siemens Motors
Ambuja GlaxoSmi HUL Mahindra Ranbaxy State Tata
Cements thKline & Labs Bank of Power
Pharma Mahindra India
Grasim IPCL MARUTI Reliance SAIL Tata Steel
BPCL Comm
Bharti HCL ICICI National
Reliance Sterlite VSNL
Airtel Techno Bank Aluminium Co. ENERGY
BHEL HDFC Infosys NTPC Reliance Sun Wipro
Ind. Pharma
Cipla HDFC ITC ONGC RPL Suzlon Zee
BANK Energy
OTHER INDICES
CNX Nifty Junior
S&P CNX 500

HARSHAD MEHTA
EARLY LIFE
Born in gujrati jain family
Early childhood was spent in mumbai
Later moved to raipur in M.P.
Back in mumbai after completing the schooling

STOCK MARKET SCAM
Harshad mehta was making waves in stock in early
90’s
Heavy Buying of ACC shares.
Price rose upto Rs 10000/-
Replacement cost theory.

SCAM EXPOSED
IN 1991, HE BECOME THE DARLING OF BUSINESS
MEDIA AND GAINED THE NICKNAME “BIG BULL”
ENDLESS SUPPLY OF MONEY
ON APRIL 23,1992. JOURNALIST SUCHETA DALAL
EXPOSED THE DUBIOUS WAYS OF HARSHAD
MEHTA.
 DIPPING INTO THE BANKING SYSTEM.

 SWIPED 600 CRORE FROM SBI
FUNDING
BR WAS AN IMPORATANT INSTRUMENT USED.
BR “confirms the sale of securities. It acts as a receipt

for the money received by the selling bank.
NEEDED BANKS TO ISSUE FAKE BR’S.
BANK OF KARAD
METROPOLITIAN COOPERATIVE BANK
USING OF BR’S
FAKE BR’S WERE PASSED ON TO OTHER BANKS
IN EXCHANGE OF MONEY
THIS MONEY WAS PUMPED IN THE MARKET TO

RISE STOCK PRISES.
PRISES KEPT ON RISING.

MARKET CRASH
EFFECTS
MANY BANKS WERE LEFT HOLDING BR’S OF NO
VALUE.
BANKING SECTOR DIPPED.
THE ENTIRE SCAM ACCOUNTED TO RS.4000

CRORE
Securities and Exchange Board of India
SEBI
Securities and Exchange Board of India
The Government of India set up a body called

Securities and Exchange Board of India in April
1988.However,the real beginning of SEBI started
in 1992,when the SEBI Act, 1992 was passed and
assented by the President of India.
Objectives of SEBI
 The main objectives of SEBI are as follows:
Objectives towards the Investors.
Objectives towards Capital Issuers.
Objectives towards Intermediaries.
Role And Functions Of SEBI
1. Protection of Investors’ Interest.
2. Guidelines on Capital Issues.
3. Regulates Working of Mutual Funds.
4. Regulates Merchant Banking Services.
5. Regulates Stock Brokers Activities.
continued….
1.
6. Portfolio Management.
7. Restrictions on Insider Trading.
8. Regulates Take-over, and Mergers.
9. Research and Publicity.
10. Dematerialization of Shares.
MESSAGE FOR INVESTORS
Do’s and Don'ts relating to..
ISSUE OF SECURITIES
INVESTING IN DERIVATIVES
DEALING WITH BROKERS & SUB - BROKERS
INVESTING IN MUTUAL FUNDS
BUYBACK OF SECURITIES
OPEN OFFER UNDER TAKEOVER REGULATIONS
DEALING IN SECURITIES
Chairman : Shri C. B. Bhave, SEBI
The Ketan Parekh (KP) scam
KETAN PAREKH
A Chartered Accountant by profession
Used to handle his family business
• NH securities
• Known as Bombay bull
• Connections with film stars ,politicians ,

international entrepreneurs
NETWORK
Built a network of companies mainly in mumbai
Concentrated mainly in ICE (i.e Information

Communication and entertainment)
Invested in 10 companies which is known as k-10
Shares held through KPs co.

Triumph international
FUNDING
Simple method of funding
Buying shares at low price & using them as collateral

to borrow from banks
Madhavapura Mercantile Cooperative Bank (MMCB)
KP used it in 2 ways- 1 Pay order rout

2 Borrowing from
mandhavi branch
The shock that shook the nation
The sensex crashed by 176 points on march 2001.
The total scam was nearly 2000 billion
Which set back the country's economy by a year
Many small investors lost their savings of life
Ketan Parekh was released on bail in May 2001

References
www.bseindia.com
www.moneycontrol.com
http://en.wikipedia.org/wiki/BSE_Sensex
www.nseindia.com
http://en.wikipedia.org/wiki/BSE_Sensex
http://en.wikipedia.org/wiki/Harshad_Mehta
www.sebi.gov.in
http://en.wikipedia.org/wiki/Ketan_Parekh
REFERENCES
NCFM BEGINNERS MODULE
NCFM CAPITAL MARKETS MODULE
BUSINESS ECONOMICS TYBCOM

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GROUP MEMBERS

•IT SPANS OVER THREE CENTURIES

•BSE WAS EXTABLISHED AS “THE

EARLIER OPEN OUTCRY SYETEM NOW BOLTS

T+1 = TRANSACTION + 1 DAY

EARLIER AOP NOW LTD COMPANY

FIRST EXCHANGE IN INDIA TO OBTAIN

FIRST EXCHANGE IN COUNTRY TO OBTAIN

WEBSITE IN GUJRATI AND HINDI

COMPOSED OF 30 STOCKS REPRESENTING

THESE COMPANIES ACCOUNTS FOR ONE FIFTH

BASE VALUE OF SENSEX IS 100 (APRIL 1,1979)

ICONIC STATURE-TRACKED WORLDWIDE

INDEX COOPERATION AGREEMENT WITH

ALSO AVAILABLE IN HONG KONG

AIRTEL HERO JAIPRAKASH RELIANCE TATA

BHEL HINDALCO L&T REL COMMU TATA

DLF HUL MAH N MAH REL INFRA TATA STEEL

GRASIM ICICI BANK MARUTI SUZ SBI TCS

HDFC INFOSYS NTPC STRELITE WIPRO

NSE is mutually-owned by a set of leading financial

There are at least 2 foreign investors NYSE Euronext

It is the second fastest growing stock exchange in the

Futures and Options

Wholesale Debt Market

Interest rate futures

S&P CNX 500

Early childhood was spent in mumbai

Later moved to raipur in M.P.

Back in mumbai after completing the schooling

Heavy Buying of ACC shares.

Price rose upto Rs 10000/-

Replacement cost theory.

 DIPPING INTO THE BANKING SYSTEM.

BR “confirms the sale of securities. It acts as a receipt

NEEDED BANKS TO ISSUE FAKE BR’S.

THIS MONEY WAS PUMPED IN THE MARKET TO

PRISES KEPT ON RISING.

BANKING SECTOR DIPPED.

THE ENTIRE SCAM ACCOUNTED TO RS.4000

The Government of India set up a body called

Used to handle his family business

• Known as Bombay bull

• Connections with film stars ,politicians ,

Concentrated mainly in ICE (i.e Information

Invested in 10 companies which is known as k-10

Shares held through KPs co.

Buying shares at low price & using them as collateral

Madhavapura Mercantile Cooperative Bank (MMCB)

KP used it in 2 ways- 1 Pay order rout

The total scam was nearly 2000 billion

Which set back the country's economy by a year

Many small investors lost their savings of life

Ketan Parekh was released on bail in May 2001

NCFM CAPITAL MARKETS MODULE

BUSINESS ECONOMICS TYBCOM

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