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1. STOCK EXCHANGE
IN INDIA

2. TOPIC
• A presentation on the History of
Stock Exchange in India, along with
its membership requirements and
Importance

3. CONTENTS
 Stock Market of India – facts
 Functions of Stock Market
 Objectives of Stock Market
 History
 Introduction to leading stock exchanges in India
 Membership Requirement
 Who can be a member
 Qualification of member
 Criteria for registering for Individual, LLP and Company
 Admission Process
 Importance

4. STOCK MARKETS OF INDIA -
Facts
• There are 19 stock exchange in India
• BSE has the highest no. of companies in the
world
• Indian stock market is one of the top 10 markets
in the world
• There are more than 20 million Demat Account
holders in India
• In January 2015, Nifty witnessed the record
market capitalization of 98,45,639 crores

5. FUNCTIONS OF STOCK
EXCHANGE
 In accordance to SEBI, they can form By-Laws
for regulations and control of contracts
 They provide the timings of Opening and Closing
of the market
 Acts as a Clearing house
 Regulates and prohibits blank transfers
 Can alter the date of final settlement
 To determine and declare market rates
 Provide methods and procedures for settlement
of claims

6. OBJECTIVES OF STOCK
MARKET
 To establish a nation wide trading facility
 To ensure an appropriate communication
network
 To facilitate Electronic Payment System
 To enable shorter settlement cycles
 To meet the current international standards of
the security market

7. HISTORY
• 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 Bomabay.
• 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.

8. Contd.
• In 1956, BSE was recognized 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.

9. Introduction to the leading
Stock Exchanges of India
• Bombay Stock Exchange - BSE was set up in the
year 1875 and is the oldest stock exchange in
Asia. It has evolved in to its present status as the
premier stock exchange.
• National Stock Exchange - National Stock
Exchange incorporated in the year 1992 provides
trading in the equity as well as debt market.
Maximum volumes take place on NSE and hence
enjoy leadership position in the country today.

10. MEMBERSHIP
REQUIREMENT

11. Who can be a
Member?
Individual
Registered Firms
Limited Liability Partnership
Body Corporates
Companies as defined in Companies Act, 1956
Any other persons or entities as may be
permitted under the Securities Contracts
(Regulation) Act, 1956

12. Qualifications of the Member
The proposed member :-
should be an individual who has completed 21
years of age
should not be an individual who is engaged as a
principal or employer in any business other than
that of securities
has not been adjudged bankrupt
has not convicted of any fraud or dishonesty
has not been previously refused admission

13. Criteria for Individual
The individual person shall be eligible for admission
to trading membership of the Exchange if :
he has worked as a partner for more than 2 years
he agrees to work for a minimum period of two
years as a partner or representative member with
another member of the Exchange
he succeeds to the established business of a
deceased or retiring member of the Exchange

14. Criteria for Limited Liablility
Partnership
 It has to be formed under Limited Liability
Partnership Act, 2008
 The Limited Liability Partnership complies with
the conditions laid down in Rule 8(6) of the
Securities Contracts (Regulation) Rules, 1957

15. Criteria for Companies
 The company should be formed in compliance
with the provisions of section 12 of the
Companies Act, 1956
 Minimum paid up equity capital should be more
than 30 lakhs
 it undertakes to comply with such other financial
requirements and norms as may be specified by
the Securities and Exchange Board of India

16. ADMISSION
PROCESS

17. IMPORTANCE OF
REGISTERING
 Fund raising and exit routes for investors
 Ready marketability of security
 Ability to raise further capital
 Supervision and control of Trading in Securities
 Fair price for the securities
 Timely disclosure of corporate information
 Collateral value of securities
 Better corporate practice
 Benefits to the public
 Sub-divison and Consolidation of Holdings

18. THANK YOU 