ACKNOWLEDGEMENT

The success and final outcome of this project required a lot of guidance and
assistance from many people and I am extremely privileged to have got this all along the
completion of my project. All that I have done is only due to such supervision and assistance
and I would not forget to thank them.

I respect and thank Mr Braja Bandhu Mahanta, for providing me an opportunity to do

the project work in Kalinga College of Commerce and giving us all support and guidance
which made me complete the project duly. I am extremely thankful to him for providing such
a nice support and guidance, although he had busy schedule managing the corporate affairs.

I owe my deep gratitude to our project guide to my teachers, who took keen interest
on our project work and guided us all along, till the completion of our project work by
providing all the necessary information for developing a good system.

I would not forget to remember friends and family member for their encouragement
and more over for their timely support and guidance till the completion of our project work.

I am thankful to and fortunate enough to get constant encouragement, support and

guidance from all Teaching staffs of college which helped us in successfully completing our
project work. Also, I would like to extend our sincere esteems to all staff in laboratory for
their timely support.
DECLARATION
CERTIFICATE
CONTENT
 WHAT IS STOCK EXCHANGE

The securities regulation act of 1956 defined stock exchange as“ an association
organization , or a individual which is established for the purpose of assisting regulating and
controlling business in buying ,selling and dealing in securities.”

This comes under treasury sector, which provides service to stock brokers & traders to
trade stocks, bonds and securities. Stock exchanges help the companies to raise their fund.
Therefore the companies needs to list themselves in the Stock Exchange and the shares will
be issued which is known as equity or a ordinary share and these shareholders are the real
owners of the company the Board Of Directors of the Company are elected out of these
Equity Shareholder only
 FEATURES OF STOCK EXCHANGE :

 It is an organized market
 It is a securities market
 It is an important constituent of capital market i.e., market for long term finance
 It is a voluntary association of persons desirous of dealing in securities
 Stock exchange is a voluntary association, its membership is not open to everybody
 In a stock exchange, only the members can deal in i.e., buy & sell securities
 The members of a stock exchange can buy and sell securities either as brokers for &
on behalf of their clients
 The dealings in a stock exchange are under certain accepted code of conduct i.e.,

rules and regulations

IMPORTANT FUNCTION OF STOCK EXCHANGE:

 Provide central and convenient meeting places for sellers and buyer of securities

 Increase the marketability and liquidity of securities

 Contribute to stability of prices of securities

 Equalization of price of securities

 Smoothen price movement

 Help the investors to know the worth of their holdings

 Promote the habit of saving and investment

 Help capital formation

 Help companies and government to raise funds from the investors

 HISTORY OF STOCK EXCHANGE

 Indian Stock market dates back to the close of 18th Century when the

East India Company used to transact loan securities

 Trading by a group of 22 stock brokers under a Banyan tree opp. The

Town Hall of Bombay .

 Formation of Bombay Stock Exchange (BSE) in 1875

 Premchand Roychand was the leading stock broker at that time who

provided some rules and regulations which are still followed.

 In 1956 , BSE was recognised as the first stock exchange in India Under

SCRA

 The happening of a tragic event in 1992 which marked the failure of

BSE.

 Formation of an electronic marketplace known as National Stock

Exchange (NSE) in 1994.

INITIAL MEMBERS WHO ARE STILL RUNNING THEIR
BUSINESS IN STOCK EXCHANGE ARE :

 D.S .Prabhu das & company

 Jamnadas Morarjee

 Champak lal Devidas

 Brymohan Laxminarayan
 SPECULATION AND SPECULATOR :

 SPECULATION : It is the transaction of members to buy or sell securities on

stock exchange with a view to make profits to anticipated raise or fall in price of
securities.

 SPECULATOR : The dealer in stock exchange who indulge in speculation are

called speculator . They do not take delivery of securities purchased or sold by them ,
but only pay or rescue the difference between the purchase price and sale price . The
different types of speculators are :

 BULL
 BEAR
 STAG
 LAME DUCK
 Pig

\
 LARGEST STOCK EXCHANGE :
IN THE WORLD :
 LONDON STOCK EXCHANGE

 NEW YORK STOCK EXCHANGE

 SHANHAI STOCK EXCHANGE

 AUSTRALIA STOCK EXCHANGE

 TOKYO STOCK EXCHANGE

 HONG KONG STOCK EXCHANGE

 TORONTO STOCK EXCHANGE

 DEUTSCHE BORSE BM&F BOVESPA

 NASDAQ OMX STOCK EXCHANGE

On July 9, 2007 SEBI has withdrawn its approval from SAURASHTRA

STOCK EXCHANGE, Rajkot due to its passive working. Hence the number of
approval stock exchanges has come down to 23
IN INDIA :

 NATIONAL STOCK EXCHANGE

 BOMBAY STOCK EXCHANGE

 CALCUTTA STOCK EXCHANGE

 COCHIN STOCK EXCHANGE

 U.P STOCK EXHANGE

 VADEDRA STOCK EXCHANGE

 KOYAMBTOUR STOCK EXCHANGE

 MEERUT STOCK EXCHANGE

 AHMEDABAD STOCK EXCHANGE

 BANGALORE STOCK EXCHANGE

 BHUBANESWAR STOCK EXCHANGE

 DELHI STOCK EXCHANGE

 GUWHATI STOCK EXCHANGE

 HYDERABAD STOCK EXCHANGE

 JAIPUR STOCK EXCHANGE

 CANARA STOCK EXCHANGE

 LUDHIANA STOCK EXCHANGE

 CHENNAI STOCK EXCHANGE

 M.P STOCK EXCHANGE

 MAGADH STOCK EXCHANGE

 CAPITAL STOCK EXCHANGE

 PUNE STOCK EXCHANGE

 BOMBAY STOCK EXCHANGE

It is oldest and first stock exchange of India established in the year 1875. First it was
started under banyan tree opposite to town hall of over 22 stock brokers. The top gainer in
BSE is 100 companies in that GMR Infra is that first.

NATIONAL STOCK EXCHANGE OF INDIA(NSE OR NSEI)

The NSE of India is the leading stock exchange of India, covering 370 cities and
towns in the country. It was established in1994 as a TAX company. It was established by 21
leading financial institutions and banks like the IDB I,IC ICI ,IFCI ,LIC ,SBI, etc.

OVER-THE-COUNTER EXCHANGE OF INDIA (OTCEI)

The OTCEI is a national, ring less and computerized stock exchange. It was
established in October, 1990.it started its operation in September, 1992.
 SECURITIES AND EXCHANGE BOARD OF INDIA(SEBI)

The SEBI was constituted on 12th April, 1988 under a resolution of the Government
of India. On 31st January, 1992,it was made a statutory body by the Securities and Exchange
board of India Act, 1992.The Companies (Amendment) Act,2000 has given certain powers
to SEBI as regards the issues and transfer of Securities and non-payment of dividend

Function Of SEBI

 Regulating the business in stock exchange and any other securities Markets.
 Promoting and regulating self-regulatory organization.
 Registering and regulating the work of collective investment Scheme, including
mutual funds.
 Prohibiting fraudulent and unfair trade practices relating to Securities market.
 Promoting education, and training of intermediaries of securities Market

Power of SEBI
 owner to approve the bye-laws of stock exchange
 Power to inspect the books of accounts
 Power to grant license to any person for the purpose of dealing in certain reaps.
 Power to delegate powers exercisable by it.
 Power to try directly the foliation of certain provision of the company Act