BANKING AWARENESS- STOCK MARKET IN INDIA
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Stock Market refers to a market place where investors cab buy and sell stocks. The price at which each buying and selling transaction takes i determined by the market forces. Here market forces are demand and supply for a particular stock. In earlier times, stock brokers assembles at a stock exchange to purchase and sale stock or in one word to make transactions. But now stock market became paperless. Almost all transaction are done electronically.
Presently there are total 23 stock exchange in India.
1. Bombay Stock Exchange (BSE)
2. National Stock Exchange (NSE)
3. Ahmedabad Stock Exchange
4. Bangalore Stock Exchange
5. Bhubaneshwar Stock Exchange
6. Calcutta Stock Exchange
7. Cochin Stock Exchange
8. Coimbatore Stock Exchange
9. Delhi Stock Exchange
10. Guwahati Stock Exchange
11. Hyderabad Stock Exchange
12. Jaipur Stock Exchange
13. Ludhiana Stock Exchange
14. Madhyapradesh Stock Exchange
15. Madras Stock Exchange
16. Magadh Stock Exchange
17. Mangalore Stock Exchange
18. Meerut Stock Exchange
19. OTC Exchange of India
20. Pune Stock Exchange
21. Saurashtra Stock Exchange
22. Uttar Pradesh Stock Exchange
23. Vadodara Stock Exchange
Important Points
*Oldest Stock Exchange in India – Bombay Stock Exchange
*Largest Stock Exchange in India – National Stock Exchange
*Regulatory Authority of Stock Market – SEBI
*Youngest stock exchange in India – Coimbatore Stock Exchange
Bombay Stock Exchange (BSE)
Bombay Stock Exchange (BSE) is a stock exchange located on Dalal Street, Mumbai . Bombay Stock Exchange is the oldest Stock Exchange in Asia. This stock exchange was ini tial ly started by five stock broker outside Mumbai Town hall Under a banyan tree in 1850. In 1875 i t become an official organization known as ‘The Native Share & Stock Brokers Association’.
After Independence, In 1956 Bombay Stock Exchange became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.
*BSE Founded in 1875
*CEO and MD of BSE – Madhu Kannan
*No. of Company listed – 5,085
*BSE Indexes- BSE SENSEX,BSE Small Cap,BSE Mid-Cap,BSE 500
*Oldest Stock Exchange in Asia
National Stock Exchange of India (NSE)
National Stock Exchange of India (NSE) – In order to l i ft the Indian stock market trading system on par with the International standards and on the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of India, All Insurance Corporations,Selected commercial banks and others.The National Stock Exchange (NSE) is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE is located in Mumbai , Maharastra.In November,1992 SEBI was incorporated as a tax-paying company.In Apri l 1993, it was recognized as a stock exchange under the Securi ties Contracts (Regulation) Act,1956.NSE Incorporated on the recommendation of Pherwani Committee.NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994 .The Capi tal market (Equi ties) segment of the NSE commenced operations in November 1994.In October 1995 NSE Became largest stock exchange in the country
Derivatives segment commenced in June 2000.Managing Di rector of NSE- Ravi Narain.No. of l istings- 1,552.NSE Indexes – S&P CNX Ni fty,CNX Ni fty Junior,S&P CNX 500.
Bank for International Settlements (BIS) –Important points to remember
*Bank for International Settlements is an International organization.
*BIS was established by the Hague agreements.
*BIS was established in 1930.
*Fi rst General Manager of BIS was Pierre Quesnay of France.
*The purpose of is to increase the cooperation between the Central banks.
*Number of member – 58 central banks
*Location of Bank for International Settlements (BIS) – Basel , Swi tzerland
*The present General manager of – Jaime Caruana of Spain.
*Bank for International Settlements (BIS) also provides banking services, but only to central banks,
or to international organizations like itself.
*BIS has representative offices in Hong Kong and Mexico City.
*In 2004 Bank for International Settlements (BIS) has publ ished i ts accounts in terms of Special
*Drawing Rights, or SDRs, replacing the Gold Franc as the bank’s uni t of account.
International Monetary Fund (IMF) – Functions,Important Points
IMF is an intergovernmental organization that promotes international economic cooperation. International Monetary Fund (IMF) was set up by 44 nation under the Bretton Woods Agreement of July 1944. This institute was established on 27th December 1945, But i t started i t’s function on 1st march 1947.
Functions of IMF:
*To remove short term defici t in Balance of Payment (BOP).
*To maintain the stabi l i ty in Exchange rate system.
*To Focusing in particular on pol icies that have an impact on the exchange rate.
*Important Points to Remember about IMF:
*Headquarter at- Washington, D.C. ,Uni ted States
*Membership- 185 Nations (Founding); 187 Nations (To Date)
*The financial year of IMF - 1st May-30th Apri l
*The Head of IMF is known as Managing Di rector.
*The head of IMF elected for 5 years. But can be removed earl ier.
*Present head of IMF - Christine Lagarde [Former finance minister of France]
*Latest/ Last Member of IMF- Tuvalu
*Quotas and Voting Ranking- India occupy 9th Place in IMF General quotas where USA in 1st, Japan
*in 2nd, Germany in 3rd Place.
*Special Drawing Rights (SDR) - It was created by IMF in 1971. It is also known as Paper Gold.
Cuba left IMF in 1964. Cuba is not a Member of IMF.
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