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BOMBAY STOCK EXCHANGE

Overview OF Bombay Stock Exchange



BSE Limited HJHJ


Location of Bombay Stock Exchange in India
Type
Stock Exchange
Location
Mumbai, Maharashtra, India
Founded
1875
Owner
BSE Limited
Key people
Ashish Chauhan (MD & CEO)
Currency
Indian rupee ( )
No. of listings 5,163 (as of September 2012)
Market Cap US$1.203 trillion (Oct 2012)
Volume
US$231 billion (Nov 2010)
Trading
Trading on the BOLT System from Monday to Friday between 9:15
Website

a.m. to 3:30 p.m. normally.


www.bseindia.com

Bombay Stock Exchange (BSE), (Bombay hare Bazaar) is a stock exchange located on Dalal
Street, Mumbai, and Maharashtra, India. It is the11th largest stock exchange in the world
by market capitalisation as on 31 December 2012.[2] Established in 1875, BSE Ltd. (formerly
known as Bombay Stock Exchange Ltd.), is the India's oldest Stock Exchange, one of Asia's

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oldest stock exchange and one of Indias leading exchange groups. Over the past 137 years, BSE
has facilitated the growth of the Indian corporate sector by providing it an efficient capitalraising platform. Popularly known as BSE, the bourse was established as "The Native Share &
Stock Brokers' Association" in 1875.
BSE is a corporatized and demutualized entity, with a broad shareholder-base which includes
two leading global exchanges, Deutsche Bourse, Fuse and Singapore Exchange as strategic
partners. BSE provides an efficient and transparent market for trading in equity, debt
instruments, derivatives, mutual funds. It also has a platform for trading in equities of small-andmedium enterprises (SME). More than 5000 companies are listed on BSE making it world's No.
1 exchange in terms of listed members. The companies listed on BSE Ltd command a total
market capitalization of USD Trillion 1.32 as of January 2013. BSE Ltd is world's fifth most
active exchange in terms of number of transactions handled through its electronic trading system.
It is also one of the worlds leading exchanges (3rd largest in December 2012) for Index options
trading
BSE also provides a host of other services to capital market participants including risk
management, clearing, settlement, market data services and education. It has a global reach with
customers around the world and a nation-wide presence. BSE systems and processes are
designed to safeguard market integrity, drive the growth of the Indian capital market and
stimulate innovation and competition across all market segments. BSE is the first exchange in
India and second in the world to obtain an ISO 9001:2000 certification. It is also the first
Exchange in the country and second in the world to receive Information Security Management
System Standard BS 7799-2-2002 certification for its BSE On-Line trading System (BOLT).
It operates one of the most respected capital market educational institutes in the country (the
BSE Institute Ltd.). BSE also provides depository services through its Central Depository
Services Limited (CDSL) arm.
BSEs popular equity index - the S&P BSE SENSEX [Formerly SENSEX] - is India's most
widely tracked stock market benchmark index. It is traded internationally on the EUREX as well
as leading exchanges of the BRCS nations (Brazil, Russia, China and South Africa). On Tuesday,

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19 February 2013 BSE has entered into Strategic Partnership with S&P DOW JONES INDICES
and the SENSEX has been renamed as "S&P BSE SENSEX".
HISTORY
The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to 1855, when
four Gujarati and one Parsi stockbroker would gather under banyan trees in front of Mumbai's
Town Hall. The location of these meetings changed many times, as the number of brokers
constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an
official organization known as 'The Native Share & Stock Brokers Association'.
On 31 August 1957, the BSE became the first stock exchange to be recognized by the Indian
Government under the Securities Contracts Regulation Act. In 1980 the exchange moved to
the PhirozeJeejeebhoy Towers at Dalal Street, Fort area. In 1986,it developed the BSE
SENSEX index, giving the BSE a means to measure overall performance of the exchange. In
2000 the BSE used this index to open its derivatives market, trading SENSEX futures contracts.
The development of SENSEX options along with equity derivatives followed in 2001 and 2002,
expanding the BSE's trading platform.
Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to an
electronic trading system in 1995. It took the exchange only fifty days to make this transition.
This automated, screen-based trading platform called BSE On-line trading (BOLT) had a
capacity of 8 million orders per day. The BSE has also introduced the world's first centralized
exchange-based internet trading system, BSEWEBx.co.in to enable investors anywhere in the
world to trade on the BSE platform.

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Indices

Graph of S&P BSE SENSEX monthly data


The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE
National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major stock
exchanges in India - Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE National Index
was renamed BSE-100 Index from 14 October 1996 and since then, it is being calculated taking
into consideration only the prices of stocks listed at BSE. BSE launched the dollar-linked version
of BSE-100 index on 22 May 2006. BSE launched two new index series on 27 May 1994: The
'BSE-200' and the 'DOLLEX-200'. BSE-500 Index and 5 sectoral indices were launched in 1999.
In 2001, BSE launched BSE-PSU Index, DOLLEX-30 and the country's first free-float based
index - the BSE Tieck Index. Over the years, BSE shifted all its indices to the free-float
methodology (except BSE-PSU index). BSE disseminates information on 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 are updated on real time basis during market
hours and displayed through the BOLT system, BSE website and news wire agencies. All BSE
Indices are reviewed periodically by the BSE Index Committee. This Committee which

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comprises eminent independent finance professionals frames the broad policy guidelines for the
development and maintenance of all BSE indices. The BSE Index Cell carries out the day-to-day
maintenance of all indices and conducts research on development of new indices. Popularly
known as BSE.
SENSEX is significantly correlated with the stock indices of other emerging markets

Market Picture Display


The following information will be disseminated to the market at regular intervals during
the order entry period pre-open session

Indicative market opening price, populated in the 'LTP' field

Match able quantity at the indicative market opening price, populated in the 'LTQ' field

If the indicative open price/match able quantity at the indicative open price is not available
then the 'LTP'/'LTQ' field is right blank.

Total buy /sell depth of the book will be populated in the 'Buy /Sell depth' fields

Percentage change in the indicative price

High/ Low prices will be disseminated based on the indicative opening prices

The 'open' field in the BOLT system will be populated only when the actual opening price
has been determined in the order matching and confirmation period.

The 'Close' field will display issue price in case of IPO

The market depth would display:

Indicative opening price with next best 4 bids and offers. If the indicative opening price is
not determined, then the best bids and offers will be displayed

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Cumulative quantities at each of these price points

Example of the market depth display

Buy Quantity

Buy Price

Sell Price

Sell Quantity

200

96

91

100

150

95

91.5

100

50

93

93

100

100

91.5

95

100

100

91

96

200

100

90

97

50

98.5

50

99

100

Demand Supply Schedule

Price
Point

Cumulative

Cumulative

Buy

Sell

96

Quantity
200

Quantity
600

95

350

93

Tradable
Quantity

Absolute
Order

200

Imbalance
400

400

350

50

400

300

300

100

91.5

500

200

200

300

91

600

100

100

500

Here the opening price determined is 95.00 at which the tradable quantity is maximized. The
market depth display would be as

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follows:

Market Wide Circuit Breakers of BSE:


Based on SEBI Circular No. SMDRPD/Policy/Cir-37/2001 dated June 28, 2001, the Exchange
implemented index-based market-wide circuit breakers with effect from July 02, 2001. SEBI
vide its Circular no. CIR/MRD/DP/ 25 /2013 dated September 03, 2013 has partially modified
the provisions of the it aforementioned circular and have introduced daily calculation of circuit
breaker limits for 10%, 15% and 20% based on the previous day's closing level of the index.
Additionally, a 15 minutes pre opening session post each trading halt has been introduced.
Based on the said circular, the Exchange on a daily basis disseminates the 10%, 15% and 20%
circuit breaker limits on the closing value of S & P BSE Sensex for the next trading day. The
rounding off the circuit breaker limits to nearest 25 points as prescribed in SEBI circular dated
June 28, 2001 has been done away with SEBI Circular dated September 3, 2013.
The index-based market-wide circuit breaker system applies at 3 stages of the index movement,
either way viz. at 10%, 15% and 20%. These circuit breakers when triggered bring about a
coordinated trading halt in all equity and equity derivative markets nationwide. The market-wide
circuit breakers are triggered by movement of either the S & P BSE Sensex or the NSE CNX
Nifty, whichever is breached earlier.

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The Trigger Limits And The Respective Halt Duration Is Given Below:

Trigger
Limit
10%

15%

20%

Trigger Time

Halt duration

Pre

Before 1 Pm
At or After 1 PM

45 Minutes
15 Minutes

duration post each halt


15 Minutes
15 Minutes

to 2.30 PM
At or after 2.30

No Halt

PM
Before 1 PM
At or after 1 PM

1 Hour 45 minutes
45 Minutes

15 Minutes
15 Minutes

before 2 PM
On or after 2 PM

Trading

the

Any time of the

remainder of the day.


Trading halt for the

day

remainder of the day.

halt

for

Hours of operation of BSE:


Session
Pre-open Trading Session
Trading Session

Timing
09:00 - 09:15
09:15 - 15:30

Position Transfer Session 15:30 - 15:55


Closing Session

15:50 - 16:05

Option Exercise Session 16:07

S& P SENSEX

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Opening

Session

BOMBAY STOCK EXCHANGE


The S&P BSE SENSEX (S&P Bombay Stock Exchange Sensitive Index), also-called the BSE
30 or simply the SENSEX, is a weighted stock of 30 well-established and financially sound
companies listed on Bombay Stock Exchange. The 30 component companies which are some of
the largest and most actively traded stocks, are representative of various industrial sectors of the
Indian economy. Published since 1 January 1986, the S&P BSE SENSEX is regarded as the
pulse of the domestic stock markets in India. The base value of the S&P BSE SENSEX is taken
as 100 on 1 April 1979, and its base year as 197879. On 25 July 2001 BSE launched DOLLEX30, a dollar-linked version of S&P BSE SENSEX. As of 21 April 2011, the market capitalization
of S&P BSE SENSEX was about 29733 billion (US$476 billion) (47.68% of market
capitalization

of

BSE),

while

its

free-float

market

capitalization

was 15690

billion (US$251 billion). During 2008-12, Sensex 30 Index share of BSE market capitalization
fell from 49% to 25% due to the rise of sectoral indices like BSE PSU, Bankex, BSE-Teck, etc.
The index is calculated based on a free-float capitalization method when weighting the effect of a
company on the index. This is a variation of the market cap method, but instead of using a
company's outstanding shares it uses its float, or shares that are readily available for trading. The
free-float method, therefore, does not include restricted stocks, such as those held by company
insiders that can't be readily sold.
To find the free-float capitalization of a company, first find its market cap (number of
outstanding shares x share price) then multiply its free-float factor. The free-float factor is
determined by the percentage of floated shares to outstanding. For example, if a company has a
float of 10 million shares and outstanding shares of 12 million, the percent of float to outstanding
is 83%. A company with an 83% free float falls in the 80-85% free-float factor, or 0.85, which is
then multiplied by its market cap (e.g., $120 million (12 million shares x .$10/share) x 0.85 =
$102 million free-float capitalization).

Objectives of S&P BSE SENSEX


The S&P BSE SENSEX is the benchmark index with wide acceptance among

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individual investors, institutional investors, foreign investors and fund managers. The
objectives of the index are:

To measure Market Movements


Given its long history and its wide acceptance, no other index matches the S&P BSE
SENSEX in reflecting market movements and sentiments. S&P BSE SENSEX is widely
used to describe the mood in the Indian Stock markets.

Benchmark for Funds Performance


The inclusion of Blue chip companies and the wide and balanced industry representation in
the S&P BSE SENSEX makes it the ideal benchmark for fund managers to compare the
performance of their funds.

For Index Based Derivatives Products


Institutional investors, money managers and small investors all refer to the S&P BSE
SENSEX for their specific purposes The S&P BSE SENSEX is in effect the proxy for
the Indian stock markets. Since S&P BSE SENSEX comprises of leading companies in all
the significant sectors in the economy, we believe that it will be the most liquid contract in
the Indian market and will garner a pre-dominant market share.

Criteria for selection and review of scrips for the S&P BSE
SENSEX
The scrip selection and review policy for S&P BSE SENSEX is based on the objective of:

Transparency

Simplicity

Index Review Frequency: The Index Committee meets every quarter to review all the BSE
indices including S&P BSE SENSEX. However, every review meeting need not necessarily
result in a change in the index constituents. In case of a revision in the Index constituents, the
announcement of the incoming and outgoing scrips is made six weeks in advance of the actual
implementation of the replacements in the Index, in accordance with SEBI requirements.

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Qualification Criteria: The general guidelines for selection of constituent scrips in S&P BSE
SENSEX are as follows.

A. Quantitative Criteria:

Market Capitalization: The scrip should figure in the Top 100 companies listed by full
market capitalization. The weight of each S&P BSE SENSEX scrip based on free-float
should be at least 0.5% of the Index. (Market Capitalization would be averaged for last six
months)

Trading Frequency: The scrip should have been traded on each and every trading day
for the last one year. Exception can be made for extreme reasons like scrip suspension etc.

Average Daily Trades: The scrip should be among the Top 150 companies listed by
average number of trades per day for the last one year.

Average Daily Turnover: The scrip should be among the Top 150 companies listed by
average value of shares traded per day for the last one year.

B. Qualitative Criteria:

Track Record: In the opinion of the Committee, the company should have an acceptable
track record.

Formula for Calculation of Index


All BSE indices (except BSE-PSU index) are calculated using following formula
Freefloat market capitalization of index constituents
Base Market capitalization Base Index Value
For calculation of BSE-PSU index, full market capitalization of index constituents is considered
instead of free-float market capitalization. Dollex-30, Dollex-100 and Dollex-200 are dollarlinked versions of SENSEX, BSE-100 and BSE-200 index. BSE IPO index & BSE TASIS

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Shariah 50 Index is calculated using following formula Capped market capitalization of index
constituents/ Base Market capitalization * Base Index Value
Where capped market capitalization for scrips in BSE IPO Index and BSE TASIS Shariah 50
Index is arrived by multiplying free-float adjusted market capitalisation of individual scrip with
its respective capping factor. Such capping factor is assigned to the index constituent to ensure
that no single scrip based on its free-float market capitalisation exceeds weightage of 20% in
case BSE IPO Index and 8% in case of BSE TASIS Shariah 50 Index at the time of rebalancing.
In case, weightage of all the constituents in the index is below 20% & 8% respectively, each
company would be assigned capping factor of 1.

Index Closure Algorithm


The closing index value on any trading day is computed taking the weighted average of all the
trades of index constituents in the last 30 minutes of trading session. If an index constituent has
not traded in the last 30 minutes, the last traded price is taken for computation of the index
closure. If an index constituent has not traded at all in a day, then its last day's closing price is
taken for computation of index closure. The use of index closure algorithm prevents any
intentional manipulation of the closing index value.

Maintenance of BSE Indices


One of the important aspects of maintaining continuity with the past is to update the base year
average. The base year value adjustment ensures that replacement of stocks in Index, additional
issue of capital and other corporate announcements like 'rights issue' etc. do not destroy the
historical value of the index. The beauty of maintenance lies in the fact that adjustments for
corporate actions in the Index should not per se affect the index values.
The Department of BSE Indices does the day-to-day maintenance of the index within the broad

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index policy framework set by the BSE Index Committee. Department of BSE Indices ensures
that all BSE Indices maintain their benchmark properties by striking a delicate balance between
frequent replacements in index and maintaining its historical continuity. The BSE Index
Committee comprises capital market expert, fund managers, market participants, members of
BSE Governing Board.

On - Line Computation of the Index


During trading hours, value of the indices is calculated and disseminated on real time basis. This
is done automatically on the basis of prices at which trades in index constituents are executed.

Adjustment for Bonus, Rights and Newly Issued Capital


Index calculation needs to be adjusted for issue of bonus and rights issue. If no adjustments were
made, a discontinuity would arise between the current value of the index and its previous value
despite the non-occurrence of any economic activity of substance. At the BSE Index Cell, the
base value is adjusted, which is used to alter market capitalization of the component stocks to
arrive at the index value.
The BSE Indices Department keeps a close watch on the events that might affect the index on a
regular basis and carries out daily maintenance of all BSE Indices.

Adjustments for Rights Issues


When a company, included in the compilation of the index, issues right shares, the freefloat market capitalization of that company is increased by the number of additional
shares issued based on the theoretical (ex-right) price. An offsetting or proportionate
adjustment is then made to the Base Market capitalization.

Adjustments for Bonus Issue

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When a company, included in the compilation of the index, issues bonus shares, the
market capitalization of that company does not undergo any change. Therefore, there is
no change in the Base Market capitalization; only the 'number of shares' in the formula is
updated.

Other Issues
Base Market capitalization Adjustment is required when new shares are issued by way of
conversion of debentures, mergers, spin-offs etc. or when equity is reduced by way of
buy-back of shares, corporate restructuring etc.

Base Market capitalization Adjustment


The formula for adjusting the Base Market capitalization is as follows:
New Base Market capitalization=Old Base Market capitalization

New Market capitalization


Old Market capitalization

To illustrate, suppose a company issues additional shares, which increases the market
capitalization of the shares of that company by say, Rs.100 crore. The existing Base
Market capitalization (Old Base Market capitalization), say, is Rs.2450 crore and the
aggregate market capitalization of all the shares included in the index before this issue is
made is, say Rs.4781 crore. The "New Base Market capitalization" will then be:
2450 x ( 4781+100)
=Rs .2501.24 crores
4781

This figure of Rs. 2501.24 crore will be used as the Base Market capitalization for
calculating the index number from then onwards till the next base change becomes
necessary.

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Technology
Eurex Group and the Bombay Stock Exchange (BSE) announced on 13 March 2013that they
have agreed to deepen their strategic partnership through a long-term technology alliance under
which BSE will join the Eurex technology roadmap and deploy Deutsche Bores Groups trading
architecture in a first step. BSE aims to replace its derivatives market platform in the course of
2013 and plans to subsequently replace also its cash market plat-form. This agreement is an
important step in further developing the strategic partnership be-tween Eurex and BSE.

The new partnership in the technology sphere will allow BSE to quickly achieve the highest
global standards for speed, reliability and order-handling capacity. It will bring to BSE state-ofthe art levels of capacity and latency, already in place at the International Securities Exchange
(ISE) since summer 2011 and in roll-out at Eurex Exchange. By aligning BSE, Eurex Exchange
and ISE markets on a common trading infrastructure, IT costs for shared customers will be
significantly reduced. This will also reduce technology development and installation efforts for
Eurex and ISE members who wish to connect to BSE and vice versa as well as strengthen the
case for cross-listing.

We expect our technology alliance with Eurex will help BSE to compete more effectively in
India, to help us attract more international participants into our marketplace and improve our
market share in derivatives and equity trading, said Ashish Chauhan, MD and CEO of BSE. It
will quickly put BSE into the Premier League of exchanges in terms of the performance of our
matching engine and overall technology infrastructure.
This technology alliance strengthens our long-term partnership with BSE, and is another
milestone in our Asian strategic roadmap, in which India obviously plays an important role. This
technology alliance also contributes to growing our global liquidity network, based on common

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market infrastructure, for the benefit of both our partners and our members, said Andreas
Preuss, CEO of Eurex and Deputy CEO of Deutsche Brse AG.

Selection stocks for Sensex


SENSEX consists of 30 top scrips from different sectors. BSE has some strict guidelines to select
scrip into SENSEX. Scrip Selection Criteria for Sensex are

Listed history Listing history of at least 3 months at BSE, preferably more than one
year

Trading frequency Should trade each and every trading day

Final rank - The scrip should figure in the top 100 companies listed by final rank. The
final rank is arrived at by assigning 75% weightage to the rank on the basis of threemonth average full market capitalization and 25% weightage to the liquidity rank based
on three-month average daily turnover & three-month average impact cost.

Market Capitalization - The weightage of each scrip in SENSEX based on three-month


average free-float market capitalization should be at least 0.5% of the Index.

Industry/Sector Representation: Scrip selection would generally take into account a


balanced representation of the listed companies in the universe of BSE.

Track Record: In the opinion of the BSE Index Committee, the company should have an
acceptable track record.

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Innovation made by BSE :

Became the first national exchange to launch its website in Gujarati and Hindi and
BOMBAY STOCK EXCHANGE
now Marathi

Purchased of Marketplace Technologies in 2009 to enhance the in-house


technology development capabilities of the BSE and allow faster time-to-market for
new products

Launched a reporting platform for corporate bonds christened the ICDM or Indian
Corporate Debt Market

Acquired a 15% stake in United Stock Exchange (USE) to drive the development
and growth of the currency and interest rate derivatives markets

Launched 'BSE StAR MF' Mutual fund trading platform, which enables exchange
members to use its existing infrastructure for transaction in MF schemes.

BSE now offers AMFI Certification for Mutual Fund Advisors through BSE
Training Institute (BTI)

Co-location facilities for Algorithmic trading

BSE also successfully launched the BSE IPO index and PSU website

BSE revamped its website with wide range of new features like 'Live streaming
quotes for SENSEX companies', 'Advanced Stock Reach', 'SENSEX View', 'Market
Galaxy', and 'Members'

Launched 'BSE SENSEX MOBILE STREAMER'

With its tradition of serving the community, BSE has been undertaking Corporate Social
Responsibility (CSR) initiatives with a focus on Education, Health and Environment. BSE
has been awarded by the World Council of Corporate Governance the Golden Peacock
Global CSR Award for its initiatives in Corporate Social Responsibility (CSR).
Other Awards:

The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and
March 31, 2007 have been awarded the ICAI awards for excellence in financial
reporting.

The Human Resource Management at BSE has won the Asia - Pacific HRM awards
for its efforts in employer branding through talent management at work, health
management at work and excellence in HR through technology

Drawing from its rich past and its equally robust performance in the recent times,
BSE will continue to remain an icon in the Indian capital market.

NEED FOR BSE


METAS
ADVENTIST
PAGE
17 upon. BSE has played a major role in
BSE is one
of the factors COLLEGE
Indian Economy
depends
the development of the country. Through BSE, Foreign Investors have invested in India.
Due to inward flow of foreign currency the, the Indian economy have started showing the

BOMBAY STOCK EXCHANGE

Products

Product Information
BSE provides following information products:

Market Data-Equity

Indices

Market Data-Derivatives

Market Data-Corporate Bonds

Corporate Data o Results (Quarterly, Half-yearly, Annual)


o Announcements
o Shareholding Pattern

Book Building Data (Public Offerings)

Investors Relations Page

Historical Data

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Market Data-Equity
1. Level 1 Data contains the following information:
i.

BSE Scrip Code

ii.

Open, High, Low and Last Traded Price

iii.

Best Bid / Offer with Volume

iv.

Traded Volume

v.

Close and Last Traded Quantity (only for live feed)

2. Level 2 Data contains the following information in addition to the level 1 data:
i.

Weighted Average Price

ii.

Upper Circuit Limit and Lower Circuit Limit

iii.

Turnover Value, Number of Trades, Trend

iv.

Total Buy Quantity and Total Sell Quantity

Broad Market Indices

Sectoral Indices

Dollar Linked Indices

SENSEX

BSE Auto

DOLLEX 30

BSE 100

BSE Bankex

DOLLEX 100

BSE 200

BSE Capital Goods

DOLLEX 200

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BOMBAY STOCK EXCHANGE

BSE 500

BSE Consumer Durables

BSE Mid Cap Index

BSE FMCG

BSE Small Cap Index

BSE Healthcare
BSE IT
BSE Metal
BSE Oil & Gas
BSE Power
BSE PSU
BSE Realty
BSE TEC k

There is a rekindled interest in the BSE F&O segment, which is now reporting a daily
turnover of nearly Rs. 10,000 million. Presently, the BSE F&O segment covers 88 scrips. It
also includes 7 Indices including our flagship product SENSEX. The BSE F&O segment also
has unique product -the Weekly Options being available on SENSEX and 4 other scrips
(Reliance Industries, Satyam, State Bank of India and Tata Steel).
The newly introduced SENSEXMini Derivatives product is also available in this feed.
The data includes Close Price, OHLC, Buy Price, Sell Price, Buy Qty, Sell Qty, Total
Volume, Trade Count etc.

Market Data: Corporate Bonds


BSE, in consultation with SEBI, has developed an Internet-based reporting platform - the
Indian Corporate Debt Market (ICDM) for reporting of all corporate deals done in respect of
corporate bonds that are listed on any stock exchange in the country, This is presently limited

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to corporate bonds that are in demat form and the trade value is over Rs. 1 lakh. ICDM is
presently being used by over 120 participants.
The data includes basic information about traded bonds and also the latest traded price, latest
traded quantity, weighted average price, weighted average yield, cumulative trading value
etc.

Corporate Data
Results: Listed companies are required to file their financial results every quarter with BSE.
In addition to the quarterly results, consolidated results are also made available. All such
results are provided in XML format.
Announcements: These cover various announcements made by the listed companies, many
of which are price-sensitive. These include announcement about a new project,
announcement of a Board meeting, announcement about any material development etc.
Company announcements contain information about corporate actions and issues, dividend
payments, amendments to Articles, general meetings etc. All such announcements are
provided in XML format.
Shareholding Pattern: Listed companies are required to submit the shareholding pattern at
the end of each quarter to BSE. All such shareholding patterns are provided in XML format.

Book Building Data-Public Offerings


Book Building has emerged as the most preferred option for the corporates to raise money
from the public.
BSE provides an online Book Building facility in which bids are entered through the large
network of BSE Brokers across the country.
The Book Building process generates significant data on the bids:
- Number of shares bid for
- Price point at which the bids have been placed
- Type of bidder
This information provides a guide for the investors about the status of the bidding i.e. the
level of investor interest in the public offering and the pricing points at which the bids are
active, and to then take a decision on how much to bid and at what price.

METAS ADVENTIST COLLEGE PAGE 21

BOMBAY STOCK EXCHANGE


BSE provides this bidding data, updated every 5 minutes, through its real time Data Feed
network.
(BSE also makes available the prospectus of every public issue for download, before the
commencement of the bidding process.)

Historical Data
BSE provides the historical data of All stocks and All Indices as well as the Corporate data.
Data is provided through the internet.

Categories
Real-time data
BSE's real-time Data Feed is a streaming data provided through an online Data Feed server,
which covers raw data of all traded stocks and indices. This category of data is mainly
intended for real-time data vendors disseminating information to their users. BSE members
can also subscribe to these Data Feeds for use in data applications.

1-minute Snapshot
This category of data provides a snapshot of the market activity every minute. The data is
provided over the Internet, and covers raw data of all traded stocks, indices and Corporate
Data. This data can be subscribed directly from BSE or through an empanelled data vendor.

End-of-Day Quotations file


This is a file generated at the end of each trading day and gives the details of day's scrip wise
volumes and prices. The file is provided over the Internet via HTTP download.

Delivery

METAS ADVENTIST COLLEGE PAGE 22

BOMBAY STOCK EXCHANGE

Leased Line
Leased Line is used for real-time feed only. The Data Feed is through a 2 MBPS leased line
which can be taken from MTNL / Reliance Communications / Tata Teleservices. The
subscriber can also opt for having two separate lines from different carriers for redundancy.
The Leased Line is arranged for by BSE and the subscriber is required to pay the charges as
levied by the service providers. BSE charges the port usage charges only.
The data is provided live in binary format.

HTTP Server
HTTP server is used for providing data through the Internet (pull method). 1-minute
snapshot and End-of-Day quotation file is available through this method. The subscriber is
provided with a login id for accessing the server and downloading the data.
Real-time feed is not available through the HTTP server setup.

Sub - Broker Registration/Cancellation.


Sub-broker means any person not being a member of a Stock Exchange who acts on behalf
of a member-broker as an agent or otherwise for assisting the investors in buying, selling or
dealing in securities through such member-brokers.
All Sub-brokers are required to obtain a Certificate of Registration from SEBI without which
they are not permitted to deal in securities. SEBI has directed that no broker shall deal with a
person who is acting as a sub-broker unless he is registered with SEBI and it shall be the
responsibility of the member-broker to ensure that his clients are not acting in the capacity of a
sub-broker unless they are registered with SEBI as a sub-broker.
It is mandatory for member-brokers to enter into an agreement with all the sub-brokers. The
agreement lays down the rights and responsibilities of member-brokers as well as sub-brokers.

METAS ADVENTIST COLLEGE PAGE 23

BOMBAY STOCK EXCHANGE

BSE & Capital Market Milestones


Date

9th Jul 1875

Milestones

The Native Share & Stock Broker's Association formed

2nd Feb 1921 Clearing House started by Bank of India


31st Aug
1957

BSE granted permanent recognition under Securities Contracts (Regulation) Act


(SCRA)

2nd Jan 1986 SENSEX, country's first equity index launched (Base Year:1978-79 =100)
10th Jul 1987 Investor's Protection Fund (IPF) introduced
3rd Jan 1989 BSE Training Institute (BTI) inaugurated
25th Jul 1990 SENSEX closes above 1000
15th Jan 1992 SENSEX closes above 2000
30th Mar
1992

SENSEX closes above 4000

1st May 1992

SEBI Act established


( An Act to protect, develop and regulate the securities market)

29th May
1992

Capital Issues (Control) Act repealed

1992

Securities Appellate Tribunal (SAT) established

14th Mar
1995

BSE On-Line Trading (BOLT) system introduced

19th Aug
1996

First major SENSEX revamp

12th May
1997

Trade Guarantee Fund (TGF) introduced

21st Jul 1997 Brokers Contingency Fund (BCF) introduced


1997

BSE On-Line Trading (BOLT) system expanded nation-wide

METAS ADVENTIST COLLEGE PAGE 24

BOMBAY STOCK EXCHANGE


1st Jun 1999 Interest Rate Swaps (IRS) / Forward Rate Agreements (FRA) allowed
22nd Mar
1999

Central Depository Services Ltd.(CDSL) set up with other financial institutions

15th Jul 1999 CDSL commences work


11th Oct 1999 SENSEX closed above 5000
11th Feb 2000 SENSEX crosses 6000 intra-day
9th Jun 2000 Equity Derivatives introduced
1st Mar 2001 Corporatisation of Exchanges proposed by the Union Govt.
1st Feb 2001 BSE Webx Launched
4th Jun 2001 BSE PSU index introduced
15th Jun 2001 WDM operations at commenced
1st Jun 2001 Index Options launched
2nd Jul 2001 VaR model introduced for margin requirement calculation
9th Jul 2001

Stock options launched

11th Jul 2001 BSE Teck launched, India 's First free float index
25th Jul 2001 Dollex 30 launched
1st Nov 2001 Stock futures launched
29th Nov
2001

100% book building allowed

31st Dec 2001 All securities turn to T+5


1st Apr 2002 T+3 settlement Introduced
15th Feb 2002 Negotiated Dealing System (NDS) established
1st Feb 2002 Two way fungibility for ADR/GDR
1st Sep 2003 SENSEX shifted to free-float methodology
1st Jan 2003

India 's first ETF on SENSEX - SPICE' introduced

16th Jan 2003 Retail trading in G Sec


1st Apr 2003 T+2 settlement Introduced

METAS ADVENTIST COLLEGE PAGE 25

BOMBAY STOCK EXCHANGE

1st June 2003 Bankex launched


1st Dec 2003 T group launched
17th May
2004

Second biggest fall of all time, Circuit filters used twice in a day
(564.71 points, 11.14%)

2nd Jun 2004 SENSEX closes over 6000 for the first time
20th May
2005

The BSE (Corporatisation and Demutualisation) Scheme, 2005


(the Scheme) announced by SEBI

8th Aug 2005 Incorporation of Bombay Stock Exchange Limited


12th Aug
2005

Certificate of Commencement of Business

19th Aug
2005

BSE becomes a Corporate Entity

7th Feb 2006 SENSEX closed above 10000


7th Jul 2006

BSE Gujarati website launched

21 st Oct
2006

BSE Hindi website launched

2nd Nov 2006 iShares BSE SENSEX India Tracker listed at Hong Kong Stock Exchange
7th Mar 2007

Singapore Exchange Limited entered into an agreement to invest in


a 5% stake in BSE

16th May
2007

Appointed Date under the Scheme i.e. Date on which


Corporatisaton and Demutualisation was achieved.Notified by SEBI
in the Official Gazette on 29.06.2007

10th Jan 2008 SENSEX All-time high 21206.77


1st Oct 2008 Currency Derivatives Introduced
18th May
2009

The SENSEX raised 2110.70 points (17.34%) and Index-wide


upper circuit breaker applied

7th Aug 2009

BSE - USE Form Alliance to Develop Currency & Interest Rate


Derivatives Markets

24th Aug

BSE IPO Index launched

METAS ADVENTIST COLLEGE PAGE 26

BOMBAY STOCK EXCHANGE


2009
1st Oct 2009 Bombay Stock Exchange introduces trade details facility for the Investors
5th Oct 2009 BSE Introduces New Transaction Fee Structure for Cash Equity Segment
25th Nov
2009

BSE launches FASTRADE - a new market access platform

4th Dec 2009 BSE Launches BSE StAR MF Mutual Fund trading platform
14th Dec
2009

Marathi website launched

18th Dec
2009

BSE's new derivatives rates to lower transaction costs for all

4th Jan 2010 Market time changed to 9.0 a.m. - 3.30 p.m.
20 th Jan
2010

BSE PSU website launched

Technology
BSE places a great deal of emphasis on Information Technology for its operations and
performance. The 'Operations & Trading Department' at BSE continuously upgrades the
hardware, software and networking systems, thus enabling BSE to enhance the quality and
standards of service provided to its members, investors and other market intermediaries.
BSE strictly adheres to IS policies and IS Security policies and procedures for its day-to-day
operations on 24x7 basis which has enabled it to achieve the BS7799 certification and the
subsequent ISO 27001 certification. In addition, BSE has also been successful in maintaining
systems and processes uptime of 99.99%.

BOLT
To facilitate smooth transactions, BSE had replaced its open outcry system with the BSE Online Trading (BOLT) facility in 1995. This totally automated, screen-based trading in
securities was put into practice nation-wide within a record time of just 50 days. BOLT has
been certified by DNV for conforming to ISO 27001:2005 security standards.

METAS ADVENTIST COLLEGE PAGE 27

BOMBAY STOCK EXCHANGE


The capacity of the BOLT platform stands presently enhanced to 80 lakh orders per day.
BSEWebx.co.in
BSE has also introduced the world's first centralized exchange based Internet trading system,
BSEWEBx.co.in. The initiative enables investors anywhere in the world to trade on the BSE
platform.
bseindia.com
BSE's website www.bseindia.com provides comprehensive information on the stock market.
It is one of the most popular financial websites in India and is regularly visited by financial
organizations and other stakeholders for updates.

Other Technology-based Initiatives


BSE, along with its strategic partners, have put into place several critical processes/systems
such as

Derivatives Trading & Settlement System (DTSS)

Electronic Contract Notes (ECN)

Unique Client Code registration (UCC)

Real-time Data Dissemination System -

Integrated Back-office System - CDB / IDB

Book Building System (BBS)

Reverse Book Building System (RBBS)

Debt Market

Director's Database

A Large Private Network


BSE operates a large private network in India. The network uses following segments to cater
to market intermediaries:BSE's Campus LAN: Connects market participant offices across 20 floors of BSE campus to
BSE systems. BSE Campus comprises of 3 BSE buildings: P.J. Towers, Rotunda and Cama

METAS ADVENTIST COLLEGE PAGE 28

BOMBAY STOCK EXCHANGE


building
BSE WAN: TDM / MPLS lines from different service providers cater to connectivity
requirements of market participants across the country. Wired / Wireless media is used.
VSATs: Satellite based communication system serves the connectivity requirements of
market participants in remote areas. Services are provided through BSE's Satellite
Communication Hub in Mumbai.
BSE Online Surveillance System - integrated (BOSS-i). an Real-time system to closely
monitor the trading and settlement activities of the member-brokers. This system enables
BSE to detect market abuses at a nascent stage, improve the risk management system and
strengthen the self-regulatory mechanisms.
State-of-the-art Hardware
BSE uses higher-end, fault-tolerant systems for its trading and related functionalities. It uses
Integrity Non-stop NS16000 and S88000 systems for its online trading systems (BOLT). The
systems have been designed to deliver the best performance without compromising on key
factors of availability, scalability, ROI and TCO.
RISC based Unix Severs rp8420 from HP: for our Derivatives, Settlement, Back office, Data
Feed, BBS, RBBS and other systems related to trading and related functionalities. The
systems are facilitated by the use of the robust and high available storage subsystems from
HP.
Intel blade servers running on Microsoft platform are used for the Internet based trading
system (ITS) enabling the end users to carry out the trading activities from any location
facilitated by the internet.
Intel blade servers running on Microsoft platform are also used for bseindia.com website,
one of the best portals on the capital market which is also facilitated by the regional
languages viz Hindi and Gujarati.

METAS ADVENTIST COLLEGE PAGE 29

BOMBAY STOCK EXCHANGE

Risk Management
Nature of Risks
Reduction and Control of Risks

Know Your Client Scheme

Database of lost , Stolen , Misplaced Securities

Client Caution Database

Verification of shares at members office

Inspection
Integrated Comprehensive Insurance Policy for Members
Property Insurance Policies

Nature of Risks:
The Exchange has been exposed to a large number of risks, which have been inherently borne
by the member brokers for all times. Since the introduction of the screen based trading the
nature of risks to which the members of the Exchange are exposed to has undergone radical
transformation. At the same time the inherent risk involved with the trading of paper based
securities still remains. Though the process of dematerialisation has already begun, till such
that it is made compulsory in all scrips, the risk of trading in fake/forged shares and instances
of loss of shares etc. will continue to exist. The safe custody of these shares in physical form
in the Exchange as well as in the member brokers offices is of prime importance.
The Risks can be classified as under:
1. Risks associated with Paper Based Trading
o Lost/misplaced securities
o damage to securities
o loss of securities in transit

METAS ADVENTIST COLLEGE PAGE 30

BOMBAY STOCK EXCHANGE


2. Client Risk
o Client default
o Client absconding
o Fake/ forged/stolen securities introduced by the clients

Reduction and Control of Risks:


As a measure of the pro-active risk control several measures have been initiated by the
Exchange to reduce the risks to which the Exchange and the member brokers are exposed. In
this regard the Exchange has initiated the following measures:
1. Know Your Client Scheme :
Under the procedure the member brokers of the Exchange are compulsory required to
obtain detailed information of clients prior to commencement of any transactions for
new clients. A similar procedure is also to be followed for existing clients. This
information is to be made available to the Exchange authorities whenever called for.
In case the member brokers fails to furnish the same it is viewed seriously.
2. Database of lost , Stolen , Misplaced Securities :
The Exchange maintains a database on all the shares that have been reported as lost,
stolen, duplicate etc. by the Companies / registrars. The information available through
the database is time relevant thus the database is modified on a regular basis and is
downloaded by the members through BOLT on a weekly basis. This database is also
provided to the Clearing House. The member brokers can thus reduce the instances of
delivery of shares that have been reported by the Company as bad delivery by
checking all the deliveries in their office with the database provided. The Exchange
has designed and developed a software module for the above for the benefit of the
members.
The Clearing House also uses the database. At the time of pay-in the members of the

METAS ADVENTIST COLLEGE PAGE 31

BOMBAY STOCK EXCHANGE


Exchange are required to submit the details of the shares being deposited in the pay-in
in a softcopy in a prescribed format.. These details are checked against the database
and a report is generated in case a match is found. Such shares are then reported as
bad delivery in the Exchange. Further follow-up is done with the delivering broker
and they are directed to lodge a police complaint against the client introducing the
stolen shares.
3. Client Caution Database :
The Risk Management department in conjunction with the Bad Delivery Cell of the
Exchange, the Exchange has designed and developed a client database. All member
brokers whose clients / sub-brokers have introduced fake / forged shares are required
to lodge a FIR / Police complaint against their clients and also report the same to the
Exchange. The information of such clients is called for in a prescribed format. As per
the scheme the members have to collect detailed information about the clients. These
details are incorporated in the database, which is downloaded to the members, as a
precautionary measure. The member brokers at the time of admitting new clients can
refer to the client caution database for further verification.
4. Verification of shares at members office :
The Risk Management Committee has outlined a process for minimizing the risks
arising out of Fake/ forged /stolen shares introduced by the clients of the member
brokers.
As per the procedure outlined issued by the Exchange, in case the transaction in a
script with one particular client in a settlement exceeds Rs. 10 lakes then the member
brokers are required to send the photocopies of the transfer - deeds and the share
certificates to the Company / Registrar for verification of the material particulars. The
members can select a random sample for the same from the lot. A similar procedure
should also be followed in case the shares worth more than Rs. 10 lakes are received
from the Clearing House during pay-out in one scrip.
The basic idea behind the introduction of this procedure is to prevent Fake/
forged/stolen shares from being introduced in the market. The Exchange issued a
notice outlining the procedure to be followed. The above procedure is an important
Risk Management Tool especially where there exists a large volume of deliveries. The
Risk Management Department acts as a facilitator in this regard and has written to all
"A" group and B1 group companies in this regard seeking their co-operation.

METAS ADVENTIST COLLEGE PAGE 32

BOMBAY STOCK EXCHANGE


5. Inspection :
The department is carrying out inspection of the member brokers records as regards
compliance of the risk management procedures.

Integrated Comprehensive Insurance Policy for Members


To reduce the systematic risk, Securities & Exchange Board of India ( SEBI) vide its circular
ref. No SMD/SED/RCG/270/96 dated January 19th, 1996, had directed all stock exchanges
to ensure that all active Members are properly insured. Insurance companies in consultation
with BSE have offered an insurance policy which covers losses on account of trading as well
as back office losses to the Members. The minimum sum insured is Rs.5 lakhs per Member
Presently, all active Members obtain the said policy directly from the insurance companies
and then inform BSE about the same.
Property Insurance PoliciesThe assets at BSE are fully covered through fire,
burglary theft (including terrorism) insurance policies.

LISTING OF THE COMPANIES ON STOCK EXCHANGE


Public Limited Company.

Public Listed Company

Public Non-listed Company

Listed Company means a public ltd Co which is


--Listed on any one or more recognized stock exchanges in India.
--Securities (shares: debentures) of such company are traded on such stock exchanges.

METAS ADVENTIST COLLEGE PAGE 33

BOMBAY STOCK EXCHANGE


Unlisted company therefore means a company whose securities are not listed on any of
recognized stock exchanges in India.
Why Companies get Listed with Stock Exchange?
Companies get listed with Stock Exchange for following reasons:
--Securities are freely transferable.
--Easy liquidity of securities.
--Easy availability of prices of securities.
--Reputation, Image, Goodwill.
--Public awareness.
--More transparency.
--Helps in obtaining loans from Banks/Institutions.
--Helps in marketing its Products.

In order to list securities of a company & get its shares traded on any recognized stock
exchanges, the Public Ltd Company may either come out with a public issue (i.e. to
offer further securities to public) or make an offer for sale of existing securities to
public. This can be done by issuing of Prospectus & Complying with all The Provinces
of Company Act 1956.
Each stock exchange has its own criteria for listing securities which should also be met.
Eg: If company intends to get listed its securities in Bombay Stock Exchange, Mumbai
post issue capital (paid up capital after proposed public issue) of such companies should
be Rs. 10 Crores at least.
The Company enters into a listing agreement with concerned stock exchange & on
receipt of permission from concerned Stock Exchange, company is listed and securities
are thereafter traded on such stock exchange

METAS ADVENTIST COLLEGE PAGE 34

BOMBAY STOCK EXCHANGE

.
MEMBERSHIP @ BSE
FEES & DEPOSIT STRUCTURE
Particulars

For Corporate & Individual/Sole Proprietorship


Cash Market and
Refundable / Non Exposure for
Futures & Options

Refundable

trading

Deposit for DBM Membership

Trading
10,00,000/-

Refundable

margin
Yes

(Cash)
Base Minimum Capital (Cash)

1,25,000/- (cash)

Refundable

No

Refundable

Yes

8,75,000/
Trade Guarantee Fund (Cash/BG/

(FDR/B.G/Cash)
10,00,000/-

FDR)

METAS ADVENTIST COLLEGE PAGE 35

BOMBAY STOCK EXCHANGE


Admission Fees (Cash) *

5,000/- #

Non Refundable

No

Initial contribution towards Trade

10,000/-

Non Refundable

No

Guarantee Fund (Cash) *


Annual Subscription (Cash) *

25,000/-

Non Refundable

No

DBM FEES - EARLIER & NOW


Requirement

Existing Members

Reduction

New Members

Membership

Rs.100 L

90%

Rs.10 L

Deposit

(Rs.5 L upfront)

Base Minimum

Rs.10 L

87.5%

Rs.1.25 L in cash

Capital

(Cash only)

(in cash)

Rs.8.75 L in cash

98%

equivalents
Rs.5,000

Admission Fee

Rs.2.5 L

(Rs.1 L upfront)

PROCESS FLOW

METAS ADVENTIST COLLEGE PAGE 36

BOMBAY STOCK EXCHANGE


Application process will be an online process that will make submitting documents for applicants
streamlined and much quicker.
Along with the acceptance letter, the applicant would be provided with a user ID to the BSE
system through which they can submit the documents online.
TRANSACTION CHARGES @ BSE
Equity
Passive Orders

Orders that are already existing in the order book at the time of Rs 2.25/lakh
matching (trade taking place)

Active Orders

Incoming orders that are matched against the passive orders at

Rs 3.25/lakh

the time of matching (trade taking place)

Derivatives

Stock Futures and

Passive orders inclusive of IPF

Active orders inclusive of IPF

and TGF charges

and TGF charges

(Rs.1 per lakh) #

Rs.1.5 per lakh

(Rs.15 per lakh) ##

Rs.20 per lakh

Index Futures (on


execution)
Stock Options and
Index Options (on
execution)
TRANSACTION CHARGES EQUITY & DERIVATIVES

Passive Orders: For every executed trade, the order (Limit Orders) which has been placed
first on the basis of the order time stamp assigned by BSE system will be considered as a
Passive Order

METAS ADVENTIST COLLEGE PAGE 37

BOMBAY STOCK EXCHANGE

Active Orders: For every executed trade, the order (Market Order or Limit Order) which
has been matched against an existing order (or Passive Order) will be considered as an
Active Order

Benefits of placing a Passive Order

Improve liquidity

Better price discovery

Low impact cost

EQUITY SEGMENT - ILLUSTRATION


Time*

Bid Qty

Bid

Offer Qty

Price

Offer

Passive

Active

Transaction

Price

Order

Order

Charges
(Rs./1,00,000)

10.00.01
10.01.05

500

1002

1000

1002

10.01.05

Trade at 1002 for 500 shares

10.01.05

500

1002

METAS ADVENTIST COLLEGE PAGE 38

2.25

3.25

2.25

BOMBAY STOCK EXCHANGE


10.02.00

300

1002

10.02.00

Trade at 1002 for 300 shares

3.25

DERIVATIVES SEGMENT - ILLUSTRATION


Time*

Bid Qty

Bid

Offer Qty

Offer

Passiv

Active

Transaction

(contracts

Price

(contracts

Price

Order

Charges

Order

(Rs./1,00,000
)

10.00.0

500

1002

1000

1002

(1.00)

1
10.01.0
5
10.01.0

1.50

Trade at 1002 for 500 contracts

5
10.01.0

500

1002

(1.00)

5
10.02.0

300

1002

1.50

0
10.02.0

Trade at 1002 for 300 contracts

DERIVATIVES SEGMENT - ILLUSTRATION


Time*

Bid Qty

Bid price

Offer Qty

Offer

Passive

Active

Transaction

(contracts

(Premium) (contracts

Price

Order

Order

Charges

(Premium)

(Rs./1,00,00
0 of Total

METAS ADVENTIST COLLEGE PAGE 39

BOMBAY STOCK EXCHANGE


Premium)

10.00.0

500

100

1
10.01.0
5
10.01.0

1000

100

(15.00)

20.00

Trade at Premium price Rs.100 for 500 contracts

5
10.01.0

500

100

5
10.02.0

300

0
10.02.0

Trade at Premium price Rs.100 for 300 contracts

100

(15.00)

20.00

DIRECT MARKET ACCESS (DMA)

Direct Market Access (DMA) is a facility that allows brokers to offer their clients direct
access to the Exchange trading system through the brokers infrastructure without manual
intervention by the broker

DMA facility is currently restricted to Institutional clients only

Advantages of DMA

Orders can be placed directly to the Exchange trading system without any manual
intervention of the broker

Faster execution of client orders

Greater transparency, increased liquidity, lower impact costs

METAS ADVENTIST COLLEGE PAGE 40

BOMBAY STOCK EXCHANGE

Reduces the risk of errors associated with manual order entry

Better audit trails and better use of hedging and arbitrage opportunities through the use of
decision support tools / algorithms for trading

AUTOMATED TRADING

Automated trading is a facility that allows brokers to enter orders to the exchange trading
system without any manual intervention

It can also be defined as a set of instructions that is submitted to the system and after
fulfilling the specified conditions, the orders get executed
Advantages of automated trading

Reduction in manpower requirement and the cost associated with it

Reduces the risk of errors associated with manual order entry

Better use of arbitrage opportunities through use of Automated trading

Systematic order-flow into the system

CO-LOCATION OF SERVERS

Allows hosting of members servers, close to BSEs Central Trading Engine (CTE)

Facilitates faster transfer/communication of data and execution of trades

Helps members who use DMA and Automated trading facilities as both make use of
strategies that exploit short-lived market opportunities and have a high dependence on
speed of execution

Facilities Available at our Data Center


The Co-Location facility will be Tier 3 grade with following specifications

Standard 19 Rack/s with 3KVA power

Uplink ports to BSE Campus LAN for BSE connectivity

METAS ADVENTIST COLLEGE PAGE 41

BOMBAY STOCK EXCHANGE


What do members have to pay?

Co-location facility can be availed at our premises at an indicative price of Rs. 5 lakh per
rack per annum

FASTRADE

FASTRADE is a powerful real-time trading terminal which allows users to track


market prices and execute orders across multiple Exchanges

Salient Features

Multi Exchange Access BSE, NSE, MCX, NCDEX, NMCE, MCX-SX & USE

Flexible RMS Built-in RMS & Admin module with distributed RMS across
dealers/clients.

Connectivity Lease-line , Broad band & VSAT

Cost Saving 30 times less expensive vis--vis other trading terminal

Low Bandwidth Utilization 3-4 Kbps bandwidth utilization for 50 Scrips marketwatch

Payment Gateway Interface with multiple banks

Integrated Server Same server for Dealer and Internet based trading clients

FASTRADE Cost Structure


FASTRADE Price Card for Dealer Terminals
No. of Terminals

Charges (Rs.)
BS

Other

Exchang
e

CTCL/IM

<10

segments
110

METAS ADVENTIST COLLEGE PAGE 42

Exchange/Segment/Month/use

BOMBAY STOCK EXCHANGE


L

Terminal

10-50

100

Exchange/Segment/Month/use

50-100

90

r
Exchange/Segment/Month/use

>100

85

r
Exchange/Segment/Month/use
r

FASTRADE Price Card for Internet based Terminals


No. of Terminals

Charges (Rs.)
BSE

Other
Exchang
e

IBT exe

Up to 100

segments
20

Exchange/Segment/Month/use

users
100-500

15

r
Exchange/Segment/Month/use

10

r
Exchange/Segment/Month/use

users
>500

users
IBT

Enterpris

(browser)

e license

r
0

8000

Per month enterprise license


for all segments all exchanges

BSE Star MUTUAL FUNDS DISTRIBUTION SYSTEM A Web-based order routing


system for Allotment & Redemption of Mutual Fund units

Launched on December 4, 2009 in the presence of Mr. C B Bhave, Chairman-SEBI and


Mr. A. P. Kurien, Chairman AMFI

Advantages- Less Paper work , Dematted units, easy accessibility, transparency

METAS ADVENTIST COLLEGE PAGE 43

BOMBAY STOCK EXCHANGE

Currently live with 18 AMCs like Reliance, HDFC, ICICI, UTI, etc and over 1000
schemes. NFOs are also facilitated online

Eligibility Criteria - BSE member with AMFI Registration No

Statistical Data (Dec 2009 - May 2010)

EXCHANGE TRADED FUNDS - ETFs

All ETFS available in the Indian capital market are available for trade at BSE

ETF trading available on BOLT (Gold ETF, Liquid ETF, Equity ETF)

Hang Seng Index-based ETF also launched in BSE

Major Index-tracking ETFs

1. SENSEX ETF
2. SENSEX Prudential ICICI ETF
3. Kotak SENSEX ETF
4. Nifty BeES
5. Junior Nifty BeES
6. S&P CNX Nifty
7. Hang sang BeES
8. Kotak Nifty

@ BSE - Liquid ETFs (Liquid BeES) can be pledged as co-lateral


- Buying of Liquid BeES helps for parking of funds, and earn daily NAV

STT levied only on Equity-based ETFs; not on Liquid & Gold ETFs.

SECURITIES LENDING & BORROWING


Definition
METAS ADVENTIST COLLEGE PAGE 44

BOMBAY STOCK EXCHANGE

Ownership of securities are temporarily transferred from the lender to the borrower

Lender retains all the benefits of ownership, other than voting rights

Facilitates members to cover their short positions and maximize the yields on their
portfolio

Eligibility for participation

Trading Members

Custodians

Banks

Registration

Written application to BOISL

Execute an Agreement with BOISL

Deposit of Base Minimum Capital of Rs. 10 Lacs in favour of BSE

Eligible Securities

All securities traded in Derivatives segment

Dematerialised securities only

Tenure

Current tenure: T+30 days

Proposed tenure: T+365 days

DBM TERMS & CONDITIONS

Earnest Money 1 lakh (Interest Free)

Individual & Corporates can apply for membership

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BOMBAY STOCK EXCHANGE

Balance deposit and fees at the time of commencement

Interest free deposit (10 lakhs) No lock-in period

Admission fee, Annual Subscription & Initial contribution towards TGF are non
refundable

DBM ELIGIBILITY CRITERIA

Networth Requirement:
Equity Segment Rs.30 Lakh (not more than 3 months old at the time of
submission)
Derivatives Segment* TM = Rs.25 Lakh; SCM = Rs.1 Cr.; TCM = Rs.3 Cr.

Paid-up Capital: Rs.30Lakh

Age: Min. 21 years

Minimum Education Qualification - HSC

Nationality
Proprietorship Firms/Individual Indian
Corporate Entity

Domestic Company should be registered in India

Foreign Subsidiary registered in India to apply

Experience: 2 years Capital Market exp.

Investment by fii in sensex in various years


Year 2004
MONTHS
January

Net Investments
3,176.80

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BOMBAY STOCK EXCHANGE


February

2,397.50

March

5,604.40

April

7,638.20

May

-3,246.90

June

516.4

July

913.6

August
September

2,892.30
2,385.60

October

3,263.30

November

6,740.80

December

6,683.80

Year 2005
MONTHS

Net Investments

January
February
March
April
May
June

457.1
8,376.30
7,502.20
-654.1
-1,140.10
5,328.60

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BOMBAY STOCK EXCHANGE


July
August
September
October
November
December

7,934.10
5,051.20
4,646.80
-3,693.90
4,038.70
9,335.00

Year 2006
MONTHS

Net Investments

January
February
March
April
May
June
July

3,677.60
7,587.80
6,688.80
521.9
-7,354.20
479.5
1,145.20

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BOMBAY STOCK EXCHANGE


August
September
October
November
December

4,643.10
5,424.70
8,013.10
9,380.10
-3,667.40

Year 2007
MONTHS

Net Investments

January
February
March
April
May
June
July
August
September

492.1
7,239.60
-1,082.00
6,679.20
3,959.70
1,643.10
23,872.40
-7,770.50
16,132.60

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BOMBAY STOCK EXCHANGE


October
November
December

20,590.90
-5,849.90
5,579.10

Year 2008
MONTHS
January
February
March
April
May
June
July
August
September
October
November
December

Net Investments
-13,035.70
1,733.30
-130.4
1,074.80
-5,011.50
-10,095.80
-1,836.80
-1,211.70
-8,278.10
-15,347.30
-2,598.30
1,750.10

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BOMBAY STOCK EXCHANGE

Year 2009
MONTHS
January
February
March
April
May
June
July
August
September
October
November
December

Net Investments
-4,245.30
-2,436.60
530.3
6,508.20
20,117.20
3,830.00
11,066.30
4,902.70
18,344.30
9,077.00
5,497.00
10,233.10

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BOMBAY STOCK EXCHANGE

Year 2010
MONTHS
January
February
March
April
May
June
July
August
September
October
November
December

Net Investments
-500.3
1,216.90
19,928.00
9,361.30
-9,436.70
10,508.40
16,617.40
11,687.20
24,978.50
28,562.90
18,293.10
2,049.60

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BOMBAY STOCK EXCHANGE

Year 2011
MONTHS
January
February
March
April
May
June
July
August
September
October
November
December

Net Investments
-4,813.20
-4,585.50
6,897.80
7,213.30
-6,614.40
4,572.20
8,030.10
-10,833.60
-158.3
1,677.40
-4,197.90
97.9

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BOMBAY STOCK EXCHANGE

Year 2012
MONTHS
January
February
March
April
May
June
July
August
September
October
November
December

Net Investments
10357.7
25212.1
8381.1
-1109.1
-347.1
-501.3
10272.7
10803.9
19261.5
11364
9577.2
24463.5

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BOMBAY STOCK EXCHANGE

Year 2013
MONTHS
January
February
March
April
May
June
July
August
September
October
November
December

Net Investments
22,059
24,439
9,124
5,414
22,169
-11,027
-6,086
-5,923
13,058
15,706
8,116
16,086

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BOMBAY STOCK EXCHANGE

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