Chirag jain 17

8/7/2019 Chirag jain 17

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NAME: CHIRAG B JAIN

ROLL NO : 17

STD : F Y FM

SUBJECT: EFSCOLLEGE: M D COLLEGE


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TOPIC:

BOMBAYSTOCK

EXCHANGE


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Board Of Directors of BSE

Mr. S. RamadoraiNon-Executive Chairman

Mr. Madhu KannanManaging Director &

Chief Executive Officer


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IntroductionIntroduction

Bombay stock exchange is the oldest stock exchange in Asiawith rich heritage

It spans over three centuries with 133 years of existence

BSE was established as the native share and stock brokersassociation in 1875

BSE is first in the country to be granted permanentrecognition under the securities contract regulation act,1956.


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FeaturesFeatures

WORLDS NO.1EXCHANGE IN

TERMS OFLISTED

COMPANIES

OVER 5019

LISTEDCOMPANIES

WORLDS 5TH

EXCHANGE INTERMS OF

TRANSACTION

MARKETCAPITALIZATION

USD 1.39TRILLION ON

Aug, 2010


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STRATEGIC PARTNERSSTRATEGIC PARTNERS


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BSE is 4th largest stock exchange in Asia & 11th largest in the world.

Nationwide reach in more than 359 cities

First exchange in India to obtain ISO 9001:2000 certification

First exchange in country to obtain Information securitymanagement system Standard BS 7799-2-2002 certification

Website in Marathi, Gujarati, Hindi & English.

Over 7700 scrips on the stock exchange.


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Earlier open outcry system now BOLTS(BSE on-line trading system)

T+1 = transaction + 1 day

Earlier AOP now Ltd company(Corporatization and demutualization)

Profit before tax for the year ended March 31, 2010 is Rs. 293crore.


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BSE INDEX

SENSITIVE INDEX SENSEX


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FEATURES OF SENSEXFEATURES OF SENSEX

y Sensex is a value weighted index

y Composed of 30 stocks representing various sectors

y These companies accounts for one fifth of marketcapitalization

y Base value of sensex is 100 (April 1,1979)

y Base year (1978-79)


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FEATURES OF SENSEXFEATURES OF SENSEX

y Free float capitalization method

y

Iconic stature-tracked worldwide

y Index cooperation agreement with deutsche borse hasmade sensex available to investors in Europe and America

y Also available in Hong Kong


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30 COMPANIES OF SENSEX30 COMPANIES OF SENSEXACC HDFC ICICI BANK MARUTI

SUZUKIRIL

BHEL HDFC BANK INFOSYS TATA STEEL RELIANCE

INFRA

BHARTIAIRTEL

HEROHONDA

JAPEE ASSOC NTPC SBI

CIPLA HINDALCO JSPL TATA POWER STERLITE

DLF HUL L & T ONGC TCS

WIPRO ITC M & M RELIANCECOMM

TATAMOTORS


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SENSEXSENSEXSensex is an index, an index is basically an indicator.It gives you a general idea about whether most of the stocks have gone up ormost of the stocks have gone down. The sensex is an indicator of all theprices of the major companies of the BSE(Bombay stock exchange)

HOWSENSEX IS CALCULATEDHOWSENSEX IS CALCULATED

Sensex is calculated using a marketcapitalization weighted

methodology. As per this methodology, the level of index at any point oftime reflect the total market value of 30 components stock relative to abase period. (the market capitalization of a company is determined bymultiplying the price of its stock by the number of shares issued by thecompany).


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OBJECTIVE OF SENSEXy To measure market movements

y Benchmark for funds performance

y For index based derivatives products


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SIGNIFICANCESIGNIFICANCE

y Barometer ofBusiness climate.

y Facilitates capital formation.y Domestic Market/ Institutions.

y FIIs.

y FDIs.

y Likely to lead to boom in other asset classes as theprofits get ploughed.


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Listing

Objectives of ListingObjectives of Listingy Provide liquidity to securities

y Mobilize savings for economic development

y

Protect Interest of investors by ensuring all disclosures .

Guidelines for Following OperationsGuidelines for Following Operationsy Public Issues (For IPO & FPO)

y Preferential Issues

y Indian Depository Receipts

y Amalgamation


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Guideline For Issues (IPO & FPO)Guideline For Issues (IPO & FPO)

For Large Cap CompaniesFor Large Cap Companies

Large cap Co. means a company with a minimum issue size of Rs. 10 crore& market capitalization of not less than Rs. 25 crore.

y The minimum post-issue paid-up capital of the applicant company(hereinafter referred to as "the Company") shall be Rs. 3 crore; and

y The minimum issue size shall be Rs. 10 crore; and

y

The minimum market capitalization of the Company shall be Rs. 25 crore(market capitalization shall be calculated by multiplying the post-issuepaid-up number of equity shares with the issue price).


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For Small Cap CompaniesFor Small Cap Companies

A small cap company is a co. other than large cap co.

y The minimum post-issue paid-up capital of the Company shall be Rs. 3crore; and

y The minimum issue size shall be Rs. 3 crore; and

y The minimum market capitalization of the Company shall be Rs. 5 crore(market capitalization shall be calculated by multiplying the post-issuepaid-up number of equity shares with the issue price); and

y The minimum income/turnover of the Company shall be Rs. 3 crore ineach of the preceding three 12-months period; and

y The minimum number of public shareholders after the issue shall be 1000.


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A due diligence study may be conducted by an independent team ofChartered

Accountants or Merchant Bankers appointed by BSE, the cost of which will be borne bythe company. The requirement of a due diligence study may be waived if a financial

institution or a scheduled commercial bankhas appraised the project in the preceding 12

months.

For all companiesFor all companies

In respect of the requirement of paid-up capital and market capitalization, theissuers shall be required to include in the disclaimer clause forming a part of theoffer document that in the event of the market capitalization (product of issueprice and the post issue number of shares) requirement ofBSE not being met,the securities of the issuer would not be listed on BSE.

The applicant, promoters and/or group companies, shall not be in default incompliance of the listing agreement.

The above eligibility criteria would be in addition to the conditions prescribedunder SEBI (Disclosure and Investor Protection) Guidelines, 2000.


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Thank you

Chirag jain 17

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