Wednesday, November 7, 2007

  • India's oldest and first stock exchange: Mumbai (Bombay) Stock Exchange. Established in 1875. More than 6,000 stocks listed.
  • Total number of stock exchanges in India: 22
  • They are in: Ahmedabad, Bangalore, Calcutta, Chennai, Delhi etc.
  • There is also a National Stock Exchange (NSE) which is located in Mumbai.
  • There is also an Over The Counter Exchange of India (OTCEI) which allows listing of small and medium sized companies.
  • The regulatory agency which oversees the functioning of stock markets is the Securities and Exchange Board of India (SEBI), which is also located in Bombay.

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Bombay Stock Exchange Limited (the Exchange) 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 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.

The regulator of the Indian capital market is the Securities and exchange board of India (SEBI). It makes sure that the small investors are not cheated and ensures transparency of the transactions.

Financial instruments in the market known as the Mutual Fund (MF) are specialised institutional investors who mobilise funds from the public and invest in the capital markets. Foreign Institutional Investors (FII) upon registration with the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are allowed to operate in Indian stock exchanges subject to the guidelines issued for the purpose by SEBI

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