Preface

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Preface The research report entitled, “A study on development of capital market Indices in India NSE & BSE” was really a great interest to do. We really enjoyed working on it. A was so interesting that it aroused my interest to do more and more work regardin The first real insight of an organization for management student comes onl preparation of project work because student first interacts with real practical introduction to industry and its working. This project work synthesize the theor learn in the class room and its practical orientation in organization. Research reports are backbone of any management education program. The too learn in the class room, we apply these tools in project work. I hae seen the s which were taught by our respectful teachers. A management master should fre!uen research work during her"her entire course plan. This research report is diided in fie chapters and each chapter has its Together they show the entire picture of “A study on development of capital market Indices in India NSE & BSE”. The #irst chapter deals with the introduction of the topic, introduction of Capital market . The objectie and need of research is also mentioned in section of project work. The $econd chapter deals with research methodology. The process of carryin whole research problem is defined in it. It contains information about the objec research, methods of data collection, sampling and sample design. Third chapter is on data analysis and interpretation. This is the most impo the project work. This section contains the analysis of all the data collected s %age & '

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Transcript of Preface

PrefaceThe research report entitled, A study on development of capital market Indices in India NSE & BSE was really a great interest to do. We really enjoyed working on it. Also, the topic was so interesting that it aroused my interest to do more and more work regarding it. The first real insight of an organization for management student comes only during her preparation of project work because student first interacts with real practical work. This is first introduction to industry and its working. This project work synthesize the theoretical concept learn in the class room and its practical orientation in organization. Research reports are backbone of any management education program. The tools that we learn in the class room, we apply these tools in project work. I have seen the same problems which were taught by our respectful teachers. A management master should frequently do research work during her/her entire course plan. This research report is divided in five chapters and each chapter has its own importance. Together they show the entire picture of A study on development of capital market Indices in India NSE & BSE. The First chapter deals with the introduction of the topic, introduction of Capital market. The objective and need of research is also mentioned in section of project work. The Second chapter deals with research methodology. The process of carrying out the whole research problem is defined in it. It contains information about the objectives of the research, methods of data collection, sampling and sample design. Third chapter is on data analysis and interpretation. This is the most important section of the project work. This section contains the analysis of all the data collected so far and they are interpreted to produce the final conclusion. It contains all the tables and charts which depicts the result. Chapter four contains the finding and recommendation of the research. This is based on the data analyzed and interpreted in the previous chapter. This is the most important section of the research report for a report is evaluated on the validity ad correctness of findings. Chapter five depicted conclusion which concludes the whole report, that is, gives a brief description of the process employed so far. And later chapters contain bibliography. Which describes the list of sources from where the matter and information is collected? It contains the list of books, authors, web sites use etc.

Seema Bharti B.B.A. VI Semester

Acknowledgement I sincerely express my deep sense of gratitude to Mr. Vijay Kumar Pandey, Assistant professor, Department of Business Administration, TERI, Ghazipur, for his extraordinary cooperation, invaluable guidance and supervision. This thesis is the result of his painstaking and generous attitude. I would like to thank the head of department Mr. Rahul Anand Singh, who gives me chance to work on this topic and valuable suggestions and useful comments throughout this research work. I owe and respectfully offer my thanks to my noble parents for their constant moral support and mellifluous affection which helped me to achieve success in every sphere of life and without their kind devotion this thesis would have been a sheer dream. I am also thankful to my siblings for their constructive discussions, perseverance and encouragement during this research work. I sincerely acknowledge the efforts of all those who have directly or indirectly helped me in completing my thesis successfully. It is the kindness of these acknowledged persons that this thesis sees the light of the day. I submit this thesis of mine with great humility and utmost regard.

Seema Bharti BBA 6th Semester Department of Business Administration Technical Education & Research Institute P.G. College, Ghazipur

About NSE-The 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, speed & efficiency, safety and market integrity. It has set up facilities that serve as 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.

About BSEBombay 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 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 demutualised and corporative entity incorporated under the 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 concerns regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. The 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 over-all 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 7799-2-2002 certified. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

About NSEThe 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, speed & efficiency, safety and market integrity. It has set up facilities that serve as 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, dematerialisation 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.

NSE MilestonesNovember 1992Incorporation

April 1993Recognition as a stock exchange

May 1993Formulation of business plan

June 1994Wholesale Debt Market segment goes live

November 1994Capital Market (Equities) segment goes live

March 1995Establishment of Investor Grievance Cell

April 1995Establishment of NSCCL, the first Clearing Corporation

June 1995Introduction of centralized insurance cover for all trading members

July 1995Establishment of Investor Protection Fund

October 1995Became largest stock exchange in the country

April 1996Commencement of clearing and settlement by NSCCL

April 1996Launch of S&P CNX Nifty

June 1996Establishment of Settlement Guarantee Fund

November 1996Setting up of National Securities Depository Limited, first depository in India, co-promoted by NSE

November 1996Best IT Usage award by Computer Society of India

December 1996Commencement of trading/settlement in dematerialized securities

December 1996Dataquest award for Top IT User

December 1996Launch of CNX Nifty Junior

February 1997Regional clearing facility goes live

November 1997Best IT Usage award by Computer Society of India

May 1998Promotion of joint venture, India Index Services & Products Limited (IISL)

May 1998Launch of NSE's Web-site: www.nse.co.in

July 1998Launch of NSE's Certification Programme in Financial Market

August 1998CYBER CORPORATE OF THE YEAR 1998 award

February 1999Launch of Automated Lending and Borrowing Mechanism

April 1999CHIP Web Award by CHIP magazine

October 1999Setting up of NSE.IT

January 2000Launch of NSE Research Initiative

February 2000Commencement of Internet Trading

June 2000Commencement of Derivatives Trading (Index Futures)

September 2000Launch of 'Zero Coupon Yield Curve'

November 2000Launch of Broker Plaza by Dotex International, a joint venture between NSE.IT Ltd. and i-flex Solutions Ltd.

December 2000Commencement of WAP trading

June 2001Commencement of trading in Index Options

July 2001Commencement of trading in Options on Individual Securities

November 2001Commencement of trading in Futures on Individual Securities

December 2001Launch of NSE VaR for Government Securities

January 2002Launch of Exchange Traded Funds (ETFs)

May 2002NSE wins the Wharton-Infosys Business Transformation Award in the Organization-wide Transformation category

October 2002Launch of NSE Government Securities Index

January 2003Commencement of trading in Retail Debt Market

June 2003Launch of Interest Rate Futures

August 2003Launch of Futures & options in CNXIT Index

June 2004Launch of STP Interoperability

August 2004Launch of NSEs electronic interface for listed companies

June 2005Launch of Futures & options in BANK Nifty Index

The OrganizationThe National Stock Exchange 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 Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges 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.

MissionNSE'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 systems, enabling shorter settlement cycles 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 technology have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. It's that force which is guiding the industry towards 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., N, S and E 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 innovationPromotersNSE has been promoted by leading financial institutions, banks, insurance companies and other financial intermediaries:1. Industrial Development Bank of India Limited 2. Industrial Finance Corporation of India Limited 3. Life Insurance Corporation of India4. State Bank of India5. 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 India10. Bank of Baroda11. Canara Bank 12. General Insurance Corporation of India13. 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 Bank21. Union Bank of India

Corporate StructureNSE is one of the first de-metalized 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 policy makers 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 demutualised 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 companies and other financial 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, and 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 day-to-day management of the Exchange is delegated to the Managing Director who is supported by a team of professional staff.Board of Directors

ChairmanMr. S. B. MathurAdministrator of the Specified Undertaking of Unit Trust of India

Managing DirectorMr. Ravi NarainNational Stock Exchange of India Ltd.

Deputy Managing DirectorMs. ChitraRamkrishnaNational Stock Exchange of India Ltd.

Directors

Mr. S. P. ChhajedPartnerM/s. Chhajed&DoshiChartered AccountantsMr. R. P. ChitaleManaging PartnerM/s. M.P.Chitale& Co.Chartered Accountants

Mr. S. H. KhanChairmanFeedback First Urban Infrastructure Development Comp. Ltd.Prof. (Dr.) K.R.S.MurthyProfessor and Former DirectorIndian Institute of Management, Bangalore

Mr. Anand G. MahindraVice Chairman & Managing DirectorMahindra & Mahindra LtdMr. N.S. KannanChief Financial Officer & TreasurerICICI Bank Ltd

Mr. Indrajit GuptaManaging Director & CEOSBI Capital Markets Ltd.Mr. A. P. KurianChairmanAssociation of Mutual Funds in India

Mr. Justice M.L. Pendse (Retd.)Former Chief Justice of Karnataka High Courtand Judge of Bombay High CourtMr. Ravi ParthasarathyChairman & Managing DirectorInfrastructure Leasing & Financial Services Ltd

Mr. R. N. BhardwajChairmanLife Insurance Corporation of IndiaMr. M. RaghavendraEx-General ManagerGeneral Insurance Corporation of India

Dr. R. H. PatilChairmanThe Clearing Corporation of India Ltd.Mr. S.VenkiteswaranSr. Advocate & Mr. Y. H. MalegamChartered Accountant

CommitteesThe Exchange has constituted various committees to advise it on areas such as good market practices, settlement procedures, risk containment systems etc. These committees are manned by industry professionals, trading members, Exchange staff as also representatives from the market regulator. Executive Committee Committee On Trade Related Issues (COTI) Advisory Committee - Listing of Securities

Executive CommitteeObjective: To manage the day-to-day operations of the Exchange Composition:1.Mr. Ravi NarainManaging DirectorNational Stock Exchange of India Ltd.Chairman

2.Mr. MukeshKansalManaging DirectorM/s. K & A Securities (P) Ltd.Trading Member

3.Mr. Hemang RajaManaging DirectorM/s IL&FS Investsmart Ltd.Trading Member

4.Mr. ShaileshSarafWholetime DirectorM/s. Dynamic Equities Pvt. Ltd.Trading Member

5.Mr. C.ParthasarathyDirectorM/s. Karvy Stock Broking Ltd. Trading Member

6.Mr. R. P. ChitaleManaging PartnerM/s. M. P. Chitale& Co. Chartered AccountantsPublic Representative

7.Mr. Y. H. MalegamChartered AccountantPublic Representative

8.Mr. S. VenkiteswaranSr. AdvocatePublic Representative

9.Ms. ChitraRamkrishnaDeputy Managing DirectorNational Stock Exchange of India Ltd.Other Nominee

10.Mr. P. M. VenkatasubramanianEx-Managing Director, GICOther Nominee

11.Mr. N.S.KannanChief Financial Officer & TreasurerICICI Bank Limited Other Nominee

For Futures & Options Segment1.Mr. Ravi NarainManaging DirectorNational Stock Exchange of India Ltd.Chairman

2.Mr. Shitin D DesaiExecutive Vice Chairman M/s. DSP Merrill Lynch Ltd.Trading Member

3.Mr. VineetBhatnagarManaging DirectorM/s Refco-Sify Securities India (Pvt.) Ltd.Trading Member

4.Mr. D.C.AnjariaDirectorInternational Finance Solutions Pvt. Ltd.Public Representative

5.Mr. ShaileshHaribhaktiPartnerM/s. Haribhakti& Co.Public Representative

6.Prof. V. Ravi AnshumanIndian Institute of ManagementBangalorePublic Representative

7.Mr. M. RaghavendraEx-General ManagerGeneral Insurance Corporation of IndiaOther Nominee

8.Ms. ChitraRamkrishnaDeputy Managing DirectorNational Stock Exchange of India Ltd.Other Nominee

9.Mr. M. L. SonejiDirector (Operations & Surveillance)National Stock Exchange of India Ltd.Other Nominee

Committee on Trade Issues (COTI)Objective: To provide guidance on trade related issues which crop up during the day-to-day functioning of the Exchange Composition:Mr. Atul KumarManaging DirectorPractical Financial Services Pvt. Ltd.(Chairman of the committee)Mr. S.RamasubramanianPartnerM/s. Venkatraman& Co

. Mr. Dhiraj SingleHead of Market OperationsASK Raymond James Financial Services (I) Ltd.Mr. Dikul PatelExecutive DirectorJK Securities Pvt. Limited

Mr. ShreekantPhumbhraProprietorShreekantPhumbhraMr. G V NageswaraRaoManaging DirectorIDBI Capital Market Services Ltd.

Mr. Ashok KakkarWholetime DirectorVivek Financial Focus Ltd.Mr. Ketan H. MarwadiManaging DirectorMarwadi Shares & Finance Pvt. Ltd.

Mr.K. RavindraBabuManaging DirectorZen Securities Ltd.Mr. Ravindra Kumar AgrawalWholetime DirectorShriParashram Holdings P. Ltd.

Advisory Committee - Listing of SecuritiesObjective: To advise NSE on The suitability of the Companies for listing on the Exchange within the parameters set out by the listing agreement To ensure that the applicant company has complied with all the conditions set out in the listing agreement as well as other formalities, SEBI regulations, etc. Systems and procedures to be adopted for listing of securities Composition:1Mr. N Ganga RamFormer Executive Director, Industrial Development Bank of India

2Mr. UdayKotakExecutive Vice Chairman and Managing Director, Kotak Mahindra Bank Ltd.

3Mr. M R MondkarChairman, Mondkar Computers Pvt. Ltd.

4Mr. S RamadoraiChief Executive Officer, Tata Consultancy Services

5Mr. PrithviHaldeaManaging Director, Prime DatabasePraxis Cons. & Information Services Pvt. Ltd.

6Mr. PrakashKarnikDirector-Asia, Electrapartners Asia Pvt. Ltd.

7Mr. S.V. PrasadChief Executive Officer, Birla Sunlife Mutual Fund

8Mr. Pradip P. ShahChairman, Indasia Fund Advisors Pvt. Ltd.

9Mr. VimalBhandariExecutive Director, Infrastructure Leasing & Financial Services Ltd.

10Mr. J. RavichandranCompany Secretary &Sr.Vice PresidentNational Stock Exchange of India Ltd.

11.Mrs. ChitraRamkrishnaDeputy Managing Director, Head of ListingNational Stock Exchange of India Ltd.

Management Team (Personal Staff)Mr. Ravi NarainMANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER

Ms. ChitraRamkrishnaDeputy Managing Director

Mr. J RavichandranDirectorLegal & Secretarial , Inspection, Finance & Accounts

Mr. M L SonejiDirectorCapital Market (Trade & Surveillance), F&O (Trade & Surveillance), WDM (Trade & Surveillance), IPO and Investigation

Mr. R SundararamanVice PresidentNSCCL - F&O Clearing, Risk Management & Collaterals

Mr. Yatrik R VinVice PresidentFinance & Accounts

Mr. A SebastinAsst. Vice PresidentRisk Management

Mr. Arup MukherjeeAsst. Vice PresidentNCFM & Economic Analysis & policy

Mr. C. N. UpadhyayAsst. Vice PresidentInspection

Mr. D Satish KumarAsst. Vice PresidentLegal

Mr. DhruvkumarPatilAsst. Vice PresidentArbitration, Defaulters Section & Investor Grievances

Mr. Mahesh HaldipurAsst. Vice PresidentPremises

Mr. Narendra Kumar AhlawatAsst. Vice PresidentNSCCL - Development

Mr. Nayan MehtaAsst. Vice PresidentFinance & Accounts

Mr. Suresh NarayanAsst. Vice PresidentIndia Index Services & Products Ltd.

Mr. R JayakumarAsst. Vice PresidentSecretarial

Mr. R Nanda KumarAsst. Vice PresidentDevelopment

Mr. Ravi VaranasiAsst. Vice PresidentInvestigation & Surveillance

Ms. T S JagadhariniAsst. Vice PresidentListing & Membership

NSE GroupNSCCL IISL NSE.IT

NSE

DotEx Intl. Ltd. NSDL

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 counter-party risk guarantee, and to operate a tight risk containment system. NSCCL commenced clearing operations in April 1996. NSCCL 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. It also undertakes settlement of transactions on other stock exchanges 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.NSE.IT, 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 area of trading, broker front-end and back-office, clearing and settlement, web-based trading, risk management, treasury management, asset liability management, banking, insurance etc. NSE.IT's 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 Mainframe Facility Management, Site Maintenance and Backups, Real Time Market Analysis & Financial News over NSE-Net, etc.NSE.IT is an Export Oriented Unit with STP and plans to go global for various IT services in due course. In the near future the company plans to release new products for Broker Back-office Operations and enhance NeatXS / Neat iXS 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 indices, for co-branding equity indices.IISL provides a broad range of services, products and professional index services. It maintains over 80 equity indices comprising broad-based benchmark indices, sectoral 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 depository in India.NSDL commenced operations in November 1996 and has since established a national infrastructure of international standard to handle trading and settlement in dematerialized form and thus completely eliminated the risks to investors associated with fake/bad/stolen paper.DotEx International LimitedDotEx 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 fulfil their obligations. The initial offering of DotEx is DotExPlaza 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, DotEx offers choice and convenience to investors. DotEx was a joint venture between i-flex Solutions Ltd. and NSE.IT Ltd. Recently NSE has taken over the shareholding and management of DotEx.DotEx products may be classified under the following broad categories: Equity Trading Module F&O Trading Module.NSE TechnologyAcross the globe, developments in information, communication and network technologies have created paradigm shifts in the securities market operations. Technology has enabled organizations to build new sources of competitive advantage, bring about innovations in products and services, and to provide for new business opportunities. Stock exchanges all over the world have realised 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.NSE believes that technology will continue to provide the necessary impetus for the organisation to retain its competitive edge and ensure timeliness and satisfaction in customer service. In recognition of the fact that technology will continue to redefine the shape of the securities industry, NSE stresses on innovation and sustained investment in technology to remain ahead of competition. NSE's IT set-up is the largest by any company in India. It uses satellite communication technology to energise participation from around 400 cities spread all over the country. In the recent past, capacity enhancement measures were taken up in regard to the trading systems so as to effectively meet the requirements of increased users and associated trading loads. With upgradation of trading hardware, NSE can handle up to 1 million trades per day. NSE 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 capitalize on in-house expertise in technology, NSE set up a separate company, NSE.IT, in October 1999. This is expected to provide a platform for taking up new IT assignments both within and outside India and attaining global exposure.NEAT is a state-of-the-art client server based application. At the server end, all trading information is stored in an in-memory database to achieve minimum response time and maximum system availability for users. The trading server software runs on a fault tolerant STRATUS main frame computer while the client software runs under Windows on PCs.The telecommunications network uses X.25 protocol and is the backbone of the automated trading system. Each trading member trades on the NSE with other members through a PC located in the trading member's office, anywhere in India. The trading members on the Wholesale Debt Market segment are linked to the central computer at the NSE through dedicated 64Kbps leased lines and VSAT terminals. These leased lines are multiplexed using dedicated 2 Mbps, optical-fibre links. The WDM participants connect to the trading system through dial-up links.The Exchange uses powerful RISC -based UNIX servers, procured from Digital and HP for the back office processing. The latest software platforms like ORACLE 7 RDBMS, GUPTA - SQL/ORACLE FORMS 4.5 Front - Ends, etc. have been used for the Exchange applications. The Exchange currently manages its data centre operations, system and database administration, design and development of in-house systems and design and implementation of telecommunication solutions.NSE is one of the largest interactive VSAT based stock exchanges in the world. Today it supports more than 3000 VSATs and is expected to grow to more than 4000 VSATs in the next year. The NSE- network is the largest private wide area network in the country and the first extended C- Band VSAT network in the world. Currently more than 9000 users are trading on the real time-online NSE application. There are over 15 large computer systems which include non-stop fault-tolerant computers and high end UNIX servers, operational under one roof to support the NSE applications. This coupled with the nation wide VSAT network makes NSE the country's largest Information Technology user.

In an ongoing effort to improve NSE's infrastructure, a corporate network has been implemented, connecting all the offices at Mumbai, Delhi, Calcutta and Chennai. This corporate network enables speedy inter-office communications and data and voice connectivity between offices.In keeping with the current trend, NSE has gone online on the Internet. Apart from having a 2mbps link to VSNL and our own domain for internal browsing and e-mail purposes, we have also set up our own Web site. Currently, NSE is displaying its live stock quotes on the web site (www.nseindia.com) which are updated online.EquitiesNSE 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 in India in terms of volumes transacted.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 and 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 etc are available here.

ListingListing means admission of securities of an issuer to trading privileges on a stock exchange through a formal agreement. The prime objective of admission to dealings on the Exchange is to provide liquidity and marketability to securities, as also to provide 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, cost-effective access to capital, the highest visibility, the fairest pricing, and investor benefits. NSE trading terminals are now situated in various cities and towns across the length and breath of India.Securities listed on the Exchange are required to fulfill the eligibility criteria for listing. Various types of securities of a company are traded under a unique symbol and different series.NSE plays an important role in helping an Indian companys 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 companys 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 lists securities in its Capital Market (Equities) segment and its Wholesale Debt Market segmentListing ProcedureAn 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 requirements by the Issuer before listing its securities on the NSE. The various steps to be taken include: 1. Initial Discussions2. Approval of Memorandum and Articles of Association3. Approval of draft prospectus4. Submission of Application5. Listing conditions and requirementListing Procedure Initial DiscussionsAuthorized persons of the concerned Issuer should hold 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.

Listing ProcedureApproval of Memorandum and Articles of AssociationRule 19(2) (a) of the Securities Contracts (Regulation) Rules, 1957 requires that the Articles of Association of the Issuer wanting to list its securities must contain provisions as given hereunder.The Articles of Association of an Issuer shall contain the following provisions namely: a. That there shall be no forfeiture of unclaimed dividends before the claim becomes barred by law; b. That a common form of transfer shall be used; c. That fully paid shares shall be free from all lien and that in the case of partly paid shares the Issuer's lien shall be restricted to moneys called or payable at a fixed time in respect of such shares; d. that registration of transfer shall not be refused on the ground of the transferor being either alone or jointly with any other person or persons indebted to the Issuer on any account whatsoever; e. that any amount paid up in advance of calls on any share may carry interest but shall not in respect thereof confer a right to dividend or to participate in profits; f. That option or right to call of shares shall not be given to any person except with the sanction of the Issuer in general meetings. g. Permission for Sub-Division/Consolidation of Share Certificate.Note: The Relevant Authority may take exception to any provision contained in the Articles of Association of an Issuer which may be deemed undesirable or unreasonable in the case of a public company and may require inclusion of specific provisions deemed to be desirable and necessary.If the Issuer's Articles of Association is not in conformity with the provisions as stated above, the Issuer has to make amendments to the Articles of Association. However, the securities of an Issuer may be admitted for listing on the NSE on an undertaking by the Issuer that the amendments necessary in the Articles of Association to bring Articles of Association in conformity with Rule 19(2)(a) of the Securities Contract (Regulation) Rules, 1957 shall be made in the next annual general meeting and in the meantime the Issuer shall act strictly in accordance with prevalent provisions of Securities Contract (Regulation) Act, 1957 and other statutes.It is to be noted that any provision in the Articles of Association, which is not in tune with sound corporate practice, has to be removed by amending the Articles of Association.

Listing ProcedureApproval 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 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 draft 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

Listing Procedure

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 documents.Listing Procedure

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 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 DistributionAppendix 'F'- Listing Agreement Listing ProcedureSubmission 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 DistributionAppendix 'G'- Application Letter for Listing of further issues.Appendix 'H' - Listing Application providing details of securities.Appendix 'I' - Checklist for supporting documents submitted (as applicable)

Listing FeesThe listing fees depend on the paid up share capital of your Company:ParticularsAmount (Rs.)

Initial Listing Fees7,500

Annual Listing FeesCompanies with paid up share and/or debenture capital:

Of Rs.1 crore4,200

Above Rs.1 crore and up to Rs.5 crores8,400

Above Rs.5 crores and up to Rs.10 crores14,000

Above Rs.10 crores and up to Rs.20 crores28,000

Above Rs.20 crores and up to Rs.50 crores42,000

Above Rs.50 crores70,000

Companies which have a paid up capital of more than Rs. 50 crores will pay additional listing fees of Rs. 1400 for every increase of Rs. 5 crores or part thereof in the paid up share/debenture capital.Kindly draw your Cheques/Demand Drafts favouring National Stock Exchange of India Limited, payable in Mumbai. Listing ProcedureSubmission 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: 1. 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;2. 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;3. 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;4. If the 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 thata. 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, andb. 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.c. 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.

Eligibility Criteria for ListingAn applicant who desires listing of its securities with NSE must fulfill the following pre-requisites:A. For Initial Public Offerings (IPOs)B. For Securities of Existing CompaniesNSE staff welcomes the opportunity to discuss a companys eligibility to list before a formal application is made. On fulfillment of the eligibility criteria, the company is required to fill in the listing application form. Eligibility Criteria for Listing

IPOs by CompaniesQualifications for listing Initial Public Offerings (IPO) are as below:1. Paid up CapitalThe paid up equity capital of the applicant shall not be less than Rs. 10 crores * and the capitalization of the applicants equity shall not be less than Rs. 25 crores**In respect of the requirement of paid-up capital and market capitalization, the issuers shall be required to include, in the disclaimer clause forming a part of the offer document that in the event of the market capitalization (Product of issue price and the post issue number of shares) requirement of the Exchange not being met, the securities of the issuer would not be listed on the Exchange.* For this purpose, the post issue paid up equity capital for which listing is sought shall be taken into account.*For this purpose, capitalization will be the product of the issue price and the post issue number of equity shares. 2. Conditions Precedent to Listing:The Issuer shall have adhered to conditions precedent to listing as emerging from inter-alia from Securities Contracts (Regulations) Act 1956, Companies Act 1956, Securities and Exchange Board of India Act 1992, any rules and/or regulations framed under foregoing statutes, as also any circular, clarifications, guidelines issued by the appropriate authority under foregoing statutes.3. At least three years track record of either:a. The applicant seeking listing; orb. The promoters*/promoting company, incorporated in or outside IndiaFor this purpose, the applicant or the promoting company shall submit annual reports of three preceding financial years to NSE and also provide a certificate to the Exchange in respect of the following: The Company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR). The networth of the company has not been wiped out by the accumulated losses resulting in a negative networth. The company has not received any winding up petition accepted by a court. * Promoters mean one or more persons with minimum 3 years of experience of each of them in the same line of business and shall be holding at least 20% of the post issue equity share capital individually or severally4. The Project/ Activity plan of the applicant must have been appraised by a financial institution u/s 4 A of the Companies Act, 1956 or a state finance corporation or a scheduled commercial bank with a paid up capital exceeding Rs.50 crores or a category I Merchant Banker with a net worth of atleast Rs.10 crores or a venture capital fund with a net worth of atleastRs. 50 crores.5. The applicant should have working capital arrangements with a bank having a Networth of not less than Rs.50 crores.Provided that this Clause 4 shall not be applicable for listing of: a) Equity shares and securities convertible into equity issued by i. a banking company including a local area bank (i.e. Private Sector Banks) set up under sub-clause (c) of Section 5 of the Banking Regulation Act, 1949 and which has received license from the Reserve Bank of India orii. a corresponding new bank set up under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, State Bank of India Act, 1955 and the State Bank of India (Subsidiary Banks) Act, 1959 (i.e. Public Sector Banks) oriii. an infrastructure company (a) whose project has been appraised by a Public Financial Institution or Infrastructure Development Finance Corporation (IDFC) or Infrastructure Leasing and Financial Services Limited (IL&FS) and (b) not less than 5% of the project cost is financed by any of the institutions referred to in clause (a) above, jointly or severally, irrespective of whether they appraise the project or not, by way of loan or subscription to equity or a combination of both. iv. Securities other than equity shares or securities convertible into equity shares at a later date issued by Government Companies, Public Sector Undertakings, Financial Institutions, Nationalized Banks, Statutory Corporations, Banking Companies and subsidiaries of Scheduled Commercial Banks.5) The applicant desirous of listing its securities should satisfy the exchange on the following:a. No disciplinary action by other stock exchanges and regulatory authorities in past three years The applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) have not been in default in payment of listing fees to any stock exchange in the last three years or has not been delisted or suspended in the past, and has not been proceeded against by SEBI or other regulatory authorities in connection with investor related issues or otherwise.b. Redressal mechanism of Investor grievanceThe points of consideration are:b. The applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) track record in redressal of investor grievances b. The applicants arrangements envisaged are in place for servicing its investor.b. The applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) general approach and philosophy to the issue of investor service and protection b. defaults in respect of payment of interest and/or principal to the debenture/bond/fixed deposit holders by the applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) shall also be considered while evaluating a companys application for listing. The auditors certificate shall also be obtained in this regard. In case of defaults in such payments the securities of the applicant company may not be listed till such time it has cleared all pending obligations relating to the payment of interest and/or principal.c. Distribution of shareholdingThe applicants/promoting company(ies) shareholding pattern on March 31 of last three calendar years separately showing promoters and other groups shareholding pattern should be as per the regulatory requirements. d. Details of LitigationThe applicant, promoters/promoting company (ies), group companies, companies promoted by the promoters/promoting company(ies) litigation record, the nature of litigation, status of litigation during the preceding three years period need to be clarified to the exchange.e. Track Record of Director(s) of the CompanyIn respect of the track record of the directors, relevant disclosures may be insisted upon in the offer document regarding the status of criminal cases filed or nature of the investigation being undertaken with regard to alleged commission of any offence by any of its directors and its effect on the business of the company, where all or any of the directors of issuer have or has been charge-sheeted with serious crimes. Note: In case a company approaches the Exchange for listing within six months of an IPO, the securities may be considered as eligible for listing if they were otherwise eligible for listing at the time of the IPO. If the company approaches the Exchange for listing after six months of an IPO, the norms for existing listed companies may be applied and market capitalization be computed based on the period from the IPO to the time of listing.

Eligibility Criteria for Listing

Securities of Existing CompaniesExisting Companies listed on other stock exchanges1. Paid up Capital & Market Capitalizationa. The paid-up equity capital of the applicant shall not be less than Rs. 10 crores * and the market capitalization of the applicants equity shall not be less than Rs. 25 crores**Provided that the requirement of Rs. 25 crores market capitalization under this clause 1(a) shall not be applicable to listing of securities issued by Government Companies, Public Sector Undertakings, Financial Institutions, Nationalized Banks, Statutory Corporations and Banking Companies who are otherwise bound to adhere to all the relevant statutes, guidelines, circulars, clarifications etc. that may be issued by various regulatory authorities from time to time.b. The paid-up equity capital of the applicant shall not be less than Rs. 25 crores * (In case the market capitalization is less than Rs. 25 crores, the securities of the company should be traded for at least 25% of the trading days during the last twelve months preceding the date of submission of application by the company on at least one of the stock exchanges where it is traded.) c. The market capitalisation of the applicants equity shall not be less than Rs. 50 crores. *** Explanation 1 For this purpose the existing paid up equity capital as well as the paid up equity capital after the proposed issue for which listing is sought shall be taken into account.** Explanation 2 The market capitalization shall be calculated by using a 12 month moving average of the market capitalisation over a period of six months immediately preceding the date of application. For the purpose of calculating the market capitalisation over a 12 month period, the average of the weekly high and low of the closing prices of the shares as quoted on the National Stock Exchange during the last twelve months and if the shares are not traded on the National Stock Exchange such average price on any of the recognised Stock Exchanges where those shares are frequently traded shall be taken into account while determining market capitalisation after making necessary adjustments for Corporate Action such as Rights / Bonus Issue. Conditions precedent to Listing:The applicant shall have adhered to conditions precedent to listing as emerging from inter-alia, Securities Contracts (Regulations) Act 1956, Companies Act 1956, Securities and Exchange Board of India Act 1992, any rules and/or regulations framed under foregoing statutes, as also any circular, clarifications, guidelines issued by the appropriate authority under foregoing statutes.At least three years track record of either:a. the applicant seeking listing; orb. the promoters*/promoting company, incorporated in or outside IndiaFor this purpose, the applicant or the promoting company shall submit annual reports of three preceding financial years to NSE and also provide a certificate to the Exchange in respect of the following: The company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR). The net worth of the company has not been wiped out by the accumulated losses resulting in a negative net worth. The company has not received any winding up petition accepted by a court* Promoters mean one or more persons with minimum 3 years of experience of each of them in the same line of business and shall be holding at least 20% of the post issue equity share capital individually or severally.The applicant should have been listed on any other recognized stock exchange for at least last three years The project/activity plan must have been appraised by a financial institution u/s 4A of the Companies Act, 1956, or a state finance corporation, or a scheduled commercial bank with a paid up capital exceeding Rs. 50 crores, or a category I Merchant Banker with a net worth of at least Rs.10 crores or a venture capital fund with a net worth of at least Rs. 50 croresThe applicant should have working capital arrangements with a bank having a net worth of at least Rs.50 crores. The applicant has paid dividend in at least 2 out of the last 3 financial years immediately preceding the year in which listing application has been made.The applicant has distributable profits in at least two out of the last three financial years (an auditors certificate must be provided in this regard).The net worth of the applicant is at least Rs. 50 crores*** While considering the profitability / ability to distribute dividend, the non recurring income/extraordinary income shall be excluded from the total income. Further in case of companies where net worth criteria is satisfied on account of shares being issued at a premium for consideration other than cash, such cases be referred to the Listing Advisory Committee (LAC). Net worth means: Paid up equity capital plus Reserves excluding revaluation reserve minus Miscellaneous Expenses not written off minus balance in profit and loss account to the extent not set off "Provided that Clause 4 and Clause 5 shall not be applicable for listing of: a) Equity shares and securities convertible into equity issued byi. a banking company including a local area bank (i.e. Private Sector Banks) set up under sub-clause (c) of Section 5 of the Banking Regulation Act, 1949 and which has received license from the Reserve Bank of India or ii. a corresponding new bank set up under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, State Bank of India Act, 1955 and the State Bank of India (Subsidiary Banks) Act, 1959 (i.e. Public Sector Banks) iii. an infrastructure company (a) whose project has been appraised by a Public Financial Institution or Infrastructure Development Finance Corporation (IDFC) or Infrastructure Leasing and Financial Services Limited (IL&FS) and (b) not less than 5% of the project cost is financed by any of the institutions referred to in clause (a) above, jointly or severally, irrespective of whether they appraise the project or not, by way of loan or subscription to equity or a combination of both. b) Securities other than equity shares or securities convertible into equity shares at a later date issued by Government Companies, Public Sector Undertakings, Financial Institutions, Nationalized Banks, Statutory Corporations, Banking Companies and subsidiaries of Scheduled Commercial Banks." The applicant desirous of listing its securities should also satisfy the exchange on the following:a. No Disciplinary action has been taken by other stock exchanges and regulatory authorities in the past three years.The applicant, promoters/promoting company (ies), group companies, companies promoted by the promoters/promoting company (ies) have not been in default in payment of listing fees to any stock exchange in the last three years or has not been delisted or suspended in the past and has not been proceeded against by SEBI or other regulatory authorities in connection with investor related issues or otherwise. b. Redressed mechanism of Investor grievanceThe points of consideration are:b. The applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) track record in redressal of investor grievancesb. The applicants arrangements envisaged are in place for servicing its investor b. The applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) general approach and philosophy to the issue of investor service and protectionb. Defaults in respect of payment of interest and/or principal to the debenture/bond/fixed deposit holders by the applicant, promoters/promoting company (ies), group companies, companies promoted by the promoters/promoting company (ies) shall also be considered while evaluating a companys application for listing. The auditors certificate shall also be obtained in this regard. In case of defaults in such payments, the securities of the applicant company may not be listed till such time it has cleared all pending obligations relating to the payment of interest and/or principal. c. Distribution of shareholdingThe applicant company/promoting company(ies) shareholding pattern on March 31 of preceding three years separately showing promoters and other groups shareholding pattern should be as per the regulatory requirements.d. Details of LitigationThe applicant, promoters/promoting company(ies), group companies, companies promoted by the promoters/promoting company(ies) litigation record, the nature of litigation, status of litigation during the preceding three years need to be clarified to the exchange. e. Track Record of Director(s) of the CompanyIn respect of the track record of the directors, relevant disclosures may be insisted upon in the offer document regarding the status of criminal cases filed or nature of the investigation being undertaken with regard to alleged commission of any offence by any of its directors and its effect on the business of the company, where all or any of the directors of issuer have or has been charge-sheeted with serious crimes. f. Change in Control of a Company/Utilisation of funds raised from publicIn the event of new promoters taking over listed companies which results in change in management and/or companies utilising the funds raised through public issue for the purposes other than those mentioned in the offer document, such companies shall make additional disclosures (as required by the Exchange) with regard to change in control of a company and utilisation of funds raised from public. Note:Where an unlisted company merges with a company listed on other stock exchanges and the merged entity seeks listing on the NSE, the Exchange may grant listing to the merged entity only if the listed company (prior to the merger with the unlisted company) meets all the criteria for listing on its own account or the unlisted company meets the requirements for listing on the Exchange, except for the market capitalisation condition, on its own account. In case either of the above conditions are not met then such company may be considered for listing after a minimum period of 18 months or more or after the publication of two annual reports whichever is later, provided it satisfies the criteria at that point of time.

About BSEBombay 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 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 demutualised and corporatised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE(Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).With demutualisation, 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.The 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 theparticipation of market intermediaries.In terms of organisation structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broad-based.The day-to-dayoperations 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 proprietory system of the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.HeritageThe 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) have had an interesting rise to prominence over the past 130 years. While the BSE is now synonymous with Dalal Street, it wasnt 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 journey of BSE is as eventful and interesting as the history of Indias securities markets. Indias 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 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 Independence.Perhaps, there would not be any leading corporate in India, which has not sourced BSEs services in resource mobilization.BSE as a brand is synonymous with capital markets in India. The BSE SENSEX 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 globallyrecognised 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 Indias 1st Bell ringing ceremony in the history Capital Markets was held on February 18th, 2002. It was the listing ceremony of Bharti Tele ventures Ltd.BSE with its long history of 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-SENSEX 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 BSE-SENSEX.The launch of BSE-SENSEX in 1986 was later followed up in January 1989 by 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 as BSE-100 Index from October 14, 1996 and since then it is calculated taking into consideration only the prices of stocks listed at BSE.With a view to provide a better representation of the increased number of companies listed, increased market capitalisation and the new industry groups, the Exchange constructed and launched on 27th May, 1994, two new index series viz., the 'BSE-200' and the 'DOLLEX-200' indices. Since then, BSE has come a long way in attuning itself to the varied needs of investors and market participants. In order to fulfill the need of the market participants for still broader, segment-specific and sector-specific indices, the Exchange has continuously been increasing the range of its indices. The launch of BSE-200 Index in 1994 was followed by the launch of BSE-500 Index and 5 sectoral indices in 1999. In 2001, BSE launched the BSE-PSU Index, DOLLEX-30 and the country's first free-float based index - the BSE TECk Index taking the family of BSE Indices to 13. The Exchange also disseminates the Price-Earnings Ratio, the Price to Book Value Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices.The values of all BSE indices (except the Dollar version of indices) are updated every 15 seconds during the market hours and displayed through the BOLT system, BSE website and news wire agencies.All BSE-Indices are reviewed periodically by the "Index Committee" of the Exchange. The committee frames the broad policy guidelines for the development and maintenance of all BSE indices. The Index Cell of the Exchange carries out the day to day maintenance of all indices and conducts research on development of new indices.

Objectives1. To know about the capital market in India.2. To know about the growth of index of capital market.3. To know the effect of capital market in the development of companies.4. To know about the growth of NSE and BSE.5. To know about the role of NSE and BSE in development of Indian economy.

Scope1. The study will help the companies in collection of finance.2. It will help in economic development of country.3. It will help in growth of NSE and BSE.4. It will help the stock market to promote the investor.5. It will help the stock market in India to motivate the foreign investor.

Importance1. It will help the investor in getting information about the customers.2. It will help the organization in plan expansion. 3. It will help the investor to know about the fluctuation in capital market.4. It will help the country in their economic development.

RESEARCH METHODOLOGY

1. Comparative Summary Of Capital Requirement.

Serial No.CriteriaBSENSE

1Capital Required(Paid-Up)MINIMUM 10 CRORESMINIMUM 10 CRORES

2Market CapitalizationMINIMUM 2 TIMES OF PAID-UP CAPITALMINIMUM 25 CRORES

3Profit Making RecordAt-least last 3 yearsN.A.

4Net Worth RequiredMinimum 20 cr.The net worth of the company has not been wiped out by the accumulated losses resulting in a negative net worth

Comparison when company/ies is/are already listed on other stock exchange/s

5Capital Required(Paid-Up)MINIMUM 3CRORESMINIMUM 10 CRORES

6Market CapitalizationMINIMUM 2 TIMES OF PAID-UP CAPITALMINIMUM 25 CRORES

7Profit Making RecordAt-least last 3 yearsAt-least two out of the last three financial years

8Net Worth RequiredMinimum 20 cr.Minimum 50 cr.

9dividend paying track recordMinimum 3 yearsMinimum 2 out of the last 3 immediately preceding financial years

10Listing RecordAt-least two years listing record with any Regional Stock Exchange.At-least three years listing record with any Regional Stock Exchange.

INTERPRETATION

As per the Table No.1 (Comparative summary of capital requirement.)Capital Required: - On NSE for new companies minimum paid up capital requirement is 10 crores, while on BSE the requirement is also 10 crores& for new companies in high technology the minimum post-issue paid-up equity capital should be Rs.5 Crores.

Market Capitalization: -On NSE the market capitalization should be 25 crores, while on BSE the minimum market capitalisation should be Rs.50 Crores (in case of new companies in high technology).

Profit Making Record: -On NSE the company must have distributable profits in at least two out of the last three financial years (an auditors certificate must be provided in this regard), while for listing company on BSE Company should have profit making track record for last three years

Net Worth Required: -On NSE the net worth of the company has not been wiped out by the accumulated losses resulting in a negative net worth, while on BSE the issuer company should have a post issue net worth (equity capital + free reserves excluding revaluation reserve) of Rs.20 crores.

dividend paying track record: -On NSE the applicant has paid dividend in at least 2 out of the last 3 financial years immediately preceding the year in which listing application has been made(in case),while on BSE the company should have a dividend paying track record for the last 3 consecutive years and the minimum dividend should be at least 10%. (when company/ies is/are already listed on other stock exchange/s).

Listing Record: - On NSE the applicant should have been listed on any other recognised stock exchange for at least last three years, while on BSE the company should have at least two years listing record with any of the Regional Stock Exchange.

COMPARISON OF LISTING FEES

BSENSE

Initial Listing Fees

Rs.20, 000Rs.7, 500

Annual Listing FeesCompanies with paid up share and/or debenture capital:

Up to Rs. 5 crores

10,000Of Rs.1 crore4,200

Above Rs.1 crore and up to Rs.5 crores8,400

Above Rs. 5 crores and up to Rs. 10 crores15,000Above Rs.5 crores and up to Rs.10 crores14,000

Above Rs. 10 crores and up to Rs. 20 crores30,000Above Rs.10 crores and up to Rs.20 crores28,000

Above 20 croresAdditional fee of Rs. 750/- for every increase of Rs. 1 crores or part thereof.Above Rs.20 crores and up to Rs.50 crores42,000

Above Rs.50 crores70,000

The comparison of INITIAL LISTING FEES is shown in the chart:-1

Initial Listing Fees (In Rs.)

NSEBSE

7,50020,000

With the help of these charts we can simplify the comparison of listing fees. These charts depict that listing fees on NSE is much lower than on BSE.

The FURTHER LISTING FEES on NSE is shown in the chart: -2

The FURTHER LISTING FEES on BSE is shown in the chart: -3

If we take the initial listing fees so we see that NSE charges less amount when BSE charges a huge amount & as we travel further the charges charged by NSE for listing on it is lower than the on BSE.

Listing Benefit1. A premier market place 2. Visibility 3. Largest exchange 4. Unprecedented reach 5. Modern infrastructure 6. Transaction speed 7. Short settlement cycles 8. Broadcast of corporate announcements 9. Trade statistics for listed companies 10. Investor service centers 11. Nominal listing fees`

1. A premier marketplaceThe sheer volume of trading activity ensure that the impact cost is lower on NSE which in turn reduces the cost of trading to the investor. NSEs automated trading system ensures consistency and transparency in the trade matching which enhances investors confidence and visibility of our market. 2. VisibilityThe trading system in NSE provides unparallel level of trade and post-trade information. The best 5 buy and sell orders are displayed on the trading system and the total number of securities available for buying and selling is also displayed. This helps the investor to know the depth of the market. Further, corporate announcements, results, corporate actions etc are also available on the trading system. 3. Largest ExchangeNSE is the largest exchange in the county in terms of trading volumes. During the year 2003-2004, NSE reported a turnover of Rs. 1,099,535 crores in the equities segment.4. Unprecedented reachNSE provides a trading platform that extends across the length and breadth of the country. Investors from 360 centres can avail of trading facilities on the NSE Trading Network. The Exchange uses the latest in communication technology to give instant access from every location. 5. Modern infrastructureNSE introduced for the first time in India, fully automated screen based trading. The Exchange uses a sophisticated telecommunication network with over 9000 trading terminals connected through VSATs (Very Small Aperture Terminals).

6. Transaction speedThe speed at which NSE processes orders, results in liquidity and better available prices. NSE's trading system on an average processes 8000 orders per minute. The highest number of trades in a day of 28,49,987 was recorded on January 05, 2005. 7. Short settlement cyclesNSE has successfully completed more than 1250 settlements without any delays. 8. Broadcast facility for corporate announcementsThe NSE network is used to disseminate information and company announcements across the country. Important information regarding the company is announced to the market through the Broadcast Mode on the NEAT System as well as disseminated through the NSE website. Corporate developments such as financial results, book closure, announcements of bonus, rights, takeover, mergers etc. are disseminated across the country thus minimizing scope for price manipulation or misuse. 9. Trade statistics for listed companiesListed companies are provided with monthly trade statistics for all the securities of the company listed on NSE.10. Investor service centersSix investor-service centers opened by NSE across the country cater to the needs of investors. 11. Nominal listing feesThe listing fee charged by NSE is much lower compared to the listing fees charged BSE.

LIMITATIONS

The limitations of this project arise from the time period assigned to me in this project. Since I had to work only for two months.

This project merely tells about the listing procedure of equities on NSE & BSE.

Conclusion

On the basis of above stated study it has been assorted that with respect to technology, listing fees, listing procedure, eligibility criteria of listing & listing requirements the National Stock Exchange has the edge.Despite the fact that Bombay Stock Exchange is older & has high level of trading volume.

However, Many market Players, Brokers, sub-brokers, trading firms etc. deal through the Bombay Stock Exchange.

Bibliography

google.com nseindia.com bse.com myiris.com indiabulls.com

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