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ST. ANDREWS COLLEGE


2010-2011
GROUP NO. 7

ST. ANDREWS COLLEGE OF ARTS, SCIENCE AND COMMERCE.
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SUBJECT
Financial Market

TOPIC
Bombay Stock Exchange

SYBBI
SEMESTER - 4

ST. ANDREWS COLLEGE OF ARTS, SCIENCE
AND COMMERCE.
ST.DOMINIC ROAD,
BANDRA
MUMBAI - 400050.

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ACKNOWLEDGEMENT
o It gives us immense pleasure in acknowledging the
valuable and cooperative assistance extended to us by the
various individuals who have helped us successfully in
completing our project.
o First of all, we would like to thank Mumbai University for
giving us this opportunity to study the subject. We would like
to show our gratitude to Prof. Renu Tiwari for valuable
assistance, encouragement and support on the topic Bombay
Stock Exchange.
o Lastly, we would like to thank our parents, friends, and
colleagues who have supported us during the making of this
project. It is the encouragement of all these people that
made us proceed towards achieving our goal.









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DECLARATION

We the student of St. Andrews College of S.Y.BBI
SEMESTER 4 hereby declare that we have completed the
Project on Bombay Stock Exchange for the academic year
2010-2011. Information submitted is true and original to the
best of our knowledge.


Group Members
Name Roll No. Signature
Adrian DCosta 8108
Franciana Dias 8112
Lynn Dmello 8113
Anthony Fernandes 8123
Rahul Hingole 8132
Shruti Punja 8151

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CERTIFICATE

We group -7 herby certify that the following students of
St. Andrews College of S.Y.BBI have completed the project
on Bombay Stock Exchange for the subject Financial
Market in the academic year 2010-2011. The information is
true and original for the best of my knowledge.
Group Members
Name Roll No. Signature
Adrian DCosta 8108
Franciana Dias 8112
Lynn Dmello 8113
Anthony Fernandes 8123
Rahul Hingole 8132
Shruti Punja 8151


Signature:
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Index
Sr. No Topic Pg.No.
1 Introduction 8
2 History 10
3 BSE Indices 12
4 Top Brokers 14
5 BSE SWOT 15
6 BSE Management Team 18
7 BSEs International Convention Hall 19
8 BSE v/s NSE 23
9 Conclusion 27
10 Bibliography 28
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Introduction

The Mumbai Stock Exchange or the BSE (Bombay Stock Exchange) is
the oldest stock exchange in Asia and most of the index heavy weight
stocks are traded in this stock exchange. The Mumbai Stock Exchange
has over 7,000 scraps traded on the stock exchange. It is the second
largest stock exchange of India in terms of trade volumes and the
largest stock exchange in terms of stocks listed.
The Mumbai Stock Exchange is 11th largest in the world with market
capitalization of close to USD 1.4 trillion.

Vision:
The vision of the Mumbai Stock Exchange is To Emerge as the
premier Indian Stock Exchange by establishing global benchmarks."
Clearly the Mumbai Stock Exchange is thinking big in terms of
customer service and trading activity.

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Methodology
The Mumbai Stock Exchange uses, BSE Sensex (Sensitive Index), an
index of 30 large stocks by market capitalization. The BSE Sensex
gives a measure of the overall performance of the Mumbai Stock
Exchange, and is closely followed around the world. If the BSE Sensex
goes up, it means that the prices of the stocks of most of the major
companies on the Mumbai Stock Exchange have gone up. If the BSE
Sensex goes down, this tells you that the stock price of most of the
major stocks on the Mumbai Stock Exchange have gone down. The BSE
Sensex is significantly correlated with the stock indices of other
emerging markets.
Based on the BSE Sensex, the BSE stock market has grown
significantly since 1990. After compensating for inflation, the Mumbai
Stock Exchange has averaged a roughly 18% annual return when
measured by the BSE Sensex - the most popular stock index in India,
over the last 15 years.
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History

The Bombay Stock Exchange is the oldest exchange in Asia. It traces
its history back to the 1850s, when 4 Gujaratis and 1 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'. In 1956, the BSE
became the first stock exchange to be recognized by the Indian
Government under the Securities Contracts Regulation Act. The
Bombay Stock Exchange developed the BSE Sensex in 1986, 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
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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) currently has 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. The BSE is
currently housed in Phiroze Jeejeebhoy Towers at Dalal Street, Fort
area.
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BSE Indices

For the premier stock exchange that pioneered the securities
transaction business in India, over a century of experience is a proud
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achievement. A lot has changed since 1875 when 318 persons by paying
a then princely amount of Re. 1, became members of what today is
called Bombay Stock Exchange Limited (BSE).
Over the decades, the stock market in the country has passed through
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. BSE, in 1986, came out with a Stock Index-SENSEX-
that subsequently became the guide of the Indian stock market.
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 October 14, 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 May 22, 2006.
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Top Brokers

Bonanza Portfolio Ltd
ICICI Securities
Oswal Group
Angel Broking
Share Khan
India Bulls
Religare
Anand Rathi
Wellindia
Karvy
SBI Cap Securities
Indi Trade
Just Trade
FCH Centrum Wealth Managers LTD
HDFC Securities LTD





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BSE SWOT

Strengths:

1. BSE has inherent advantages: its history, larger scrip base and a
strong brand.
2. The SENSEX (BSEs 30 share sensitive index) is one of the
most recognized indexes and tracked worldwide.
3. Apart for larger base of listed companies, BSE also has a
historical perspective.
4. Its online trending system (BOLT) has awarded with the global
recognized Information Security System Standard BS7799-2-
2002.
5. It got the ISO certification for its surveillance and clearing and
settlement.






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Weakness:

1. The BSE SENSEX, which delivers inferior hedging effectiveness
and higher impact cost.
2. At present, BSE has fewer than 12% share across the cash and
share derivative market of equity markets.
3. At present, BSE is almost non-existence in derivative space.
4. BSE also lacks in terms of providing better services to its
customers and is not proactive.



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Opportunities:
1. Corporatization will improve internal management system and
investor relations, and benefit companies that are listed in BSE.
2. Derivative market is growing at exponential rate and BSE with its
large infrastructure and long presence in the capital market has
the capability to expand its market share in this segment.
3. If a large private sector bank picks up a strategic stake in BSE, it
could give the exchange access to a large distribution network
and promote new products like derivatives. The strategic investor
could also be a market maker (providing buy and sell quotes at any
given time).
4. 30 to 40 percent of the income of exchange like NASADAQ and
NYSE is from vending data. For BSE, its measly 4 percent. The
potential for growth then, is immense.

Threats:

1. Aggressive competitor like NSE poses major threat to BSEs
future.
2. NSEs top 100 stocks alone account for nearly the preferred
destination for trading in the top stocks.
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BSE Management Team

Sr. No Name Designation
1 Mr. Madhu Kannan Managing Director & Chief
Executive Officer
2 Mr. Ashish Kumar Chauhan Dy. Chief Executive Officer
3 M3. Kersi Tavadia Chief information Officer
4 Mr. Nehal Vora Head Planning & Policy
5 Dr. Sayee Srinivasan Head Product Strategy
6 Mr. James E. Shapiro Head Market Development
7 Mr. Rahul Parilekar Chief Business Officer &
Head Of Markets
8 Mr. V.K.R. Agarwal Chief Finance Officer
9 Mr. Lakshman Gugulothu OSD


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BSEs International Convention Hall

BSE is committed to provide several valuable services to India's
corporate sector.

BSE now invites listed companies and other institutions to hold
their Annual General Meetings/ Extra ordinary General Meetings,
Listing Ceremonies, Analyst Meets or any other important event
at BSE's International Convention Hall, one of the largest,
centrally located and well-equipped facility in Mumbai.

The International Convention Hall is also made available to
reputed institutions for conducting seminars and conferences,
and other corporate functions.

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Location:
The International Convention hall is located in the heart of India's
financial business district. Located in the BSE Building, India's most
prominent financial landmark, the International Convention Hall
provides the right boundaries and atmosphere for business meetings.
It can be easily reached from Churchgate or CST (VT) railway
stations. The BSE building enjoys proximity to the bustling business
district of Mumbai including Nariman Point, Flora Fountain and Fort.


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Facilities:
The Convention Hall is circularly arranged with a capacity of around
700 persons. It provides state-of-the-art infrastructure, imperative
for any large business meeting, replete with the following:

Projection Equipment - Three projectors, with two of these being by
the side of the imposing podium and one exactly at the rear end for
viewing convenience of visitors and panelists. Connectivity is provided
for laptops, desktops and beta players along with high-end audio visual
systems.

Web-Casting can also be arranged.

A separate business room with duplicate, Internet connectivity,
photocopier and telecom equipment is available.




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Prestigious events hosted at the International Convention
Hall:

Some of the prestigious events hosted at the International Convention
Hall include:
Visit of Prime Minister Mr. Atal Bihari Vajpayee for BSE's 125
years celebrations
Launch of various BSE 's products and services
Product launches/analyst meets of corporates
Listing ceremonies of hundreds of corporates.
Mastering Risk Series 2007
E&Y IPO Transformation Conclave,2008
BSR Awards for Corporate Social Responsibility, 2007
CII Capital Markets Summit 2007
P. Chidambaram's (Finance Minister) visit for Union Bank of
India's programme 2008




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BSE v/s NSE

When one just starts to explore stock markets, his first question is
obviously, how to determine which stocks to buy? Moneyvidya can of
course be a great help in this matter, with analysts getting tracked for
performance of their stock picks.

You always also have this second question in mind. Why there are 2
exchanges in India? Why there are 2 indexes (Sensex & Nifty)? What
makes one better than other?





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Let see their pros and cons against each other one by one.

1. What is BSE? BSE is a very old stock exchange, founded in 1875
2. What is NSE? NSE is newer kid on the block (founded in 1994)
3. NSE has a more sophisticated technology, being the newer entrant
4. BSE has more number of stocks listed (World no 1, around 8000
companies listed) and more total market cap than NSE.
5. BSE has to be your exchange of choice if you want to deal a lot in
small caps.
6. Volume of shares (liquidity) is much more on NSE, than BSE.
7. NSE has much more volume of derivatives (futures & options). BSE is
almost non-existent in it.
8. What is Sensex? Sensex is the primary index of BSE weighted
avg. of 30 blue chip shares, formed in 1986.
9. S&P CNX Nifty, or just Nifty, is the index for NSE. Its more
popular amongst mutual funds etc.
10. Even though Nifty has more companies than Sensex, their
movements are almost always correlated.
11. Index funds mostly track themselves against Nifty, as NSE has
more volumes
12. Generally speaking, NSE has gained a lot of ground in last 10 years,
and BSE is lagging behind.
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13. You can use the difference in quotes to buy at one exchange and
sell at the other quickly, to make small amounts. This is called
Arbitrage Trading.





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Which one is better? If you want to play in small cap stocks, BSE
offers much more opportunity. Otherwise, generally speaking, if the
stock you want is available at NSE, go for NSE. It has better volumes,
better technology.

For a retail investor, it does not matter much. In general, the thumb
rule for cash segment (regular delivery trades) is you check if the
stock is listed at NSE, if yes, buy it on NSE, else buy on BSE. The
minor difference in quote wont matter for most practical purposes.
The quote that you see in your trading platform, and the actual price
that you get delivery for, might be slightly different, especially for low
volume mid cap stocks. What matters more, is what stocks you buy!



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Conclusion


















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Bibliography

www.wikiedia.com
www.bseindia.com
www.financialliteracy.com
www.google.com/images
www.indiamart.com/market/bse
www.yahooanswers.com
www.diffen.com
www.24dunia.com
www.differencebetween.net
www.surfindia.com>finance>indianstockexchange