History of Stock Trading in India

write up of var. Trading in IndiaIntroductionBackground of win oersThe pedigree transaction history in India is obscured in the mists of time. Historical records, as and where they exist, rargonly lecture ab prohibited business and speculative occupation except in passing. However, the fountain of profligate broking in the country may go back to a time, when touchs, debentures and bonds re encloseing titles to property were depression issued on the condition of transfer from one psyche to an some other and the earliest record of dealings in securities in India is the tocopherol India Comp some(prenominal)s loan securities, way of life back in the 18th century.The first inventorying alter in India, Tokyo mental strain change, which was founded in 1878. The countrys second stock diversify was established in Ahmedabad in 1894, followed by the Calcutta Stock Exchange (CSE). CSE can as well as trace its origin back to 19th century. From a do together low a neem tree way back in the 1830s, the CSE was formally established in May 1908.Indias other major stock substitute subject field Stock Exchange (NSE), promoted by ahead(p) financial institutions, was established in April 1993. Over the years, several stock exchanges commit been established in the major cities of India. There argon this instant 23 recognised stock exchanges Mumbai (bovine spongiform encephalitis, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore, Bhubhaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore and Meerut. Today, close to of the global stock exchanges birth become highly efficient, computerised organisations. Computerised networks also do it possible to connect to severally other and have fostered the growth of an open, global securities food market.Though Stock Broking was safe in Calcutta as early as 1836, the members of the broking profession had neither whatever code of conduct for their guidance, nor any abiding place for congregation. The centre of their activity was near a neem tree, where at present, stands the offices of the Chartered rim (now cognise as Standard Chartered) on Netaji exchangehas Road, Calcutta. In 1905, Chartered Bank began to defecate their own building, which led brokers to shift the argonna of their operation, the neighbourhood of the recent altogetherahabad Bank.The brokers had no shelter and business was carried on in the open place. The inconvenience of much(prenominal) concern, prompted brokers to organise themselves and in May 1908, an association was formed under the design and style of theCalcutta Stock Exchange Associationat 2, China fair Street.At the time of incorporation in 1908, the Stock Exchange had cl members. Today the total membership has risen to more than 900, which contains several somatic and institutional members. The number of companies operateed on the Exchange is more than 3,500. The An nual derangement of the Exchange in 1997-98 was to the tune of Rs, 1,78,779 crores. The Calcutta Stock Exchange has been granted permanent recognition by the Central presidential term with effect from April 14, 1980 under the applicable provisions of the Securities Contracts (Regulation) Act, 1956, with a view to render useful helper to investors.In December 1993, SEBI directed the stock exchanges to discontinue the traditional corpse of take aim forward of transactions (badla). Subsequently, it proposed an alternative clay in March 1994, just no agreement could be reached on implementing this system. In February 1995, SEBI set up the G. S. Patel Committee (GSPC) to review the system of carry forward transactions. The GSPC stirted its report in March 1995. SEBI weded the system recommended by the GSPC with some modifications in its decisions of July 27, 1995 and October 5, 1995.This revise Carry Forward System (RCFS) was implemented in the bovine spongiform encephalitis in January 1996, but the other exchanges in which the traditional carry forward system had been prevalent before December 1993 did not come forward to adopt the RCFS. A year later on the implementation of RCFS, the President of the mad cow disease wrote to SEBI in January 1997 betokening a relaxation of certain aspects of the RCFS to make it more practical and efficient. In its meeting of March 27, 1997, SEBI reviewed the entire sequence of developments relating to the RCFS and specifi travel toy noted that plot introducing the RCFS in July 1995, SEBI had decided that the implementation of the revised carry forward system would be reviewed periodically by the Board, the first review universe after three months. History of mad cow diseaseAn informal group of 22 stockbrokers began profession under a banian tree tree opposite the Town house of Bombay from the mid-1850s, each investing a (then) princely amount of Rupee 1. This banyan tree still stands in the Horniman Circle Park, Mumbai. The informal group of stockbrokers organize themselves as the The Native Share and Stockbrokers Associationwhich, in 1875, was formally organise as the Bombay Stock Exchange (BSE).In January 1899, the stock exchange travel into the Brokers Hall after it was inaugrated by James M Maclean. After the stolon World War, the BSE was shifted to an old building near the Town Hall. In 1928, the plot of land on which the BSE building now stands (at the convergence of Dalal Street, Bombay Samachar Marg and Hammam Street in downtown Mumbai) was acquired, and a building was constructed and occupied in 1930.Premchand Roychand was a leading stockbroker of that time, and he assisted in setting surface traditions, conventions, and procedures for the calling of stocks at Bombay Stock Exchange and they are still being followed.Several stock broking firms in Mumbai were family run enterprises, and were reard after the heads of the family. The following is the list of some of the initial members of the exchange, and who are still running their respective business.D.S. Prabhudas accompany (now know as DSP, and a joint venture partner with Merrill Lynch)Jamnadas Morarjee (now cognize as JM)Champaklal Devidas (now called Cifco Finance)Brijmohan LaxminarayanIn 1956, the Government of India recognized the Bombay Stock Exchange as the first stock exchange in the country under the Securities Contracts (Regulation) Act.The BSE moved into its current premises the Phiroze Jeejeebhoy Towers in 1980. The Bombay Stock Exchange followed the acquainted(predicate) outcry system for stock employment up until 1995, when it was replaced by an electronic (eTrading) system named BOLT, or the BSE OnLine Trading system. In 2005, the status of the exchange changed from an Association of Persons (AoP) to a full fledged corporation under the BSE (Corporatization and Demutualization) Scheme, 2005 (and its name was changed to The Bombay Stock Exchange particular(a)).BSE-SensexThe BSE SENSEX (also known as the BSE 30) is a value-weighted index composed of 30 scrips, with the base April 1979 = 100. The set of companies which make up the index has been changed only a few times in the last 20 years. These companies bet for around one-fifth of the market capitalisation of the BSEBSE other IndicesApart from BSE SENSEX, which is the most normal stock index in India, BSE uses other stock indices as wellBSE 100BSE 500BSEPSUBSEMIDCAPBSESMLCAPBSEBANKEXThe case Stock Exchange Of IndiaThe National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on insane asylum of New Stock Exchanges.NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992.It is a tax-paying company unlike other stock exchanges in the country.On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt mart (WDM) discussion section in June 1994.The Capital commercializedize (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.NSE GroupNSCCL, The arrangingNSE.IT Ltd.India Index run Products Ltd. (IISL)Dot Ex Inter guinea pig LimitedNational Securities alluviation Ltd. (NSDL)NSCCL, The OrganizationThe National Securities Clearing Corporation Ltd. (NSCCL), a wholly have hyponym of NSE, was incorporated in August 1995. It was set up with the following objectivesto lead and sustain confidence in clearing and elimination of securitiesto promote and maintain, ill-considered and consistent settlement cyclesto provide counter-party risk guarantee, andto operate a nettled risk containment system2. NSE.ITLtdNSE.IT, a 100% subsidiary of National Stock Exchange of India Limited (NSE), is the information engine room arm of the largest stock exchange of the country.NSE.IT possesses the wealth of expertise acquir ed in the last six years by running the employment and clearing infrastructure of largest stock exchange of the country.NSE.IT is an trade Oriented Unit with STP and plans to go global for various IT operate in due course. In the near future the company plans to leave office new products for Broker Back-office Operations and enhance NeatXS / Neat iXS to support right away Through Processing on the net.3.India Index do Products Ltd. (IISL)India Index gains and Products Limited (IISL), a joint venture between NSE and CRISIL Ltd. (formerly the Credit judge Information Services of India Limited).It was set up in May 1998 toIt provides a variety of indices and index related services and products for the Indian capital markets.It has a consulting and licensing agreement with Standard and Poors (SP), the worlds leading provider of investible equity indices, for co-branding equity indices.It maintains over 80 equity indices comprising broad-establish benchmark indices, sect oral in dices and customized indices.Many investing and risk prudence products based on IISL indices have been developed in the recent past, within India and abroad. These include index based derivatives traded on NSE and capital of Singapore Exchange (SIMEX) and a number of index funds.4.DotEx International LimitedDotEx was a joint venture between i-flex Solutions Ltd. and NSE.IT Ltd. Recently NSE has interpreted over the theatrical roleholding and management of DotEx.DotEx was formed to provide world-class internet trading platforms which allows members of NSE to offer online trading facilities to their customers.Members of NSE can service a larger lymph nodeele by development the automated risk management features and thus increase volumes.Investors get statewide and updated information necessary to trade, on with a single-click convenience to fulfill their obligationsThe initial offering of DotEx is DotEx Plaza where doubled market participants such as members of NSE, secretary participants and banks can offer web-based services to their customers.As a neutral collector and infrastructure provider, DotEx offers extract and convenience to investors.DotEx products may be classified under the following broad categoriesEquity Trading facultyTrading Module5.National Securities sedimentation Ltd. (NSDL)In prepare to solve the myriad problems associated with trading in physical securities, NSE conjugate hands with the Industrial Development Bank of India (IDBI) and the Unit Trust of India (UTI) to promote dematerialization of securities.Together they set up National Securities Depository Limited (NSDL), the first monument in India.NSDL commenced operations in November 1996 and has since established a national infrastructure of international standard to clutch trading and settlement in dematerialised form and thus completely eliminated the risks to investors associated with jook house/bad/stolen paper.List of the companies in the sensexScope and importanc e of the study question OBJECTIVESObjective Comparative analysis of Religare Securities Ltd. online share trading and Religare Securities Ltd. offline share trading.Sub objectivesTo study the procedure, product and services of online and offline share trading.To know the preference of the factors which are fundamental in online and offline share trading.To compare the online medium with Offline medium.To know the trading status of the Religare Securities Ltd. Clients.To know the service level of the Religare Securities Ltd.RESEARCH METHOLOGYS correct the problem. supply a research design.Planning a sample.Gathering the data.Processing and analyzing the data.Formulating conclusions and preparing the report.Define the new problem.Problems online share trading As there are couples of good advantages there are also some technical disadvantages. As each coin have two sides.Disconnection from Internet In online share trading there is the possibility that your internet connection may get slow or get stopped, this may result in disjunction from share market. At such critical times you have to call your executive (from whom you opened your trading account) and place your order or jog off your pending orders.Computer Problem If your computer stops operation then this may also result in disconnection from share market at this time also you have contact your executive. early(a) Problem Other problems like electricity disconnection. Solution for this is inverter or knock about backup.Data collectionSources-Primary Data. supplemental Data.Primary DataQuestionnaire.Secondary DataMagazines.Journals.Websites.THEROTICAL PROSPECTIVESRELIGAREValues that bindReligare Company ProfileReligare is a leading Financial Services Brokerage House with acknowledged industry leaders in execution and clearing services on Exchange transactiond Derivatives and silver market products.Key elements that place Religare amongst the leading Brokerage Houses and makes it the preferred ser vice provider for value based financial services areA Client- operate foundation and strategy committed to client-specific investment needs and objectives.Integrated and innovational use of Technology enabling clients to trade offline,online and Strategic tie-ups with latest technology partners to facilitate trading access and direct processing across cd outlets in 160 citiesClient-focused philosophy backed by memberships of all drumhead Indian Stock and good Exchanges makes Religare a preferred service provider in the Industry for value based services.Religare confidently steers you by a challenging Financial and Trade Market every moment, whether you are present or not Religare GroupReligare Securities Ltd.Religare Finevest Ltd.Religare Wealth Management Services.Religare Capital Market Ltd.Religare Finance Ltd.Religare insurance Holding Co. Ltd.Religare Realty Ltd.Religare Venture Capital Pvt. Ltd.Religare Insurance Broking Ltd.Religare Comodities Ltd.Religare Affiliation and Distribution NetworkProven and accredited leaders in the Financial Services business, Religare provides you the unique opportunity to trade offline and online while stabbing across all geographic barriers.Strategic Tie-ups that provide latest technology for access and processingTrading over 425 locations across 160 cities in India24 hour access to Account Information via the Net or Electronic File Transfer (FTP) facilities.Membership of all Principal Indian Stock and Commodity ExchangesNational Stock Exchange of India Ltd (NSEIL)Bombay Stock Exchange (BSE)Futures Option Segment of NSEIL BSEDubai Gold Commodities Exchange (DGCX)National Commodity Derivatives Exchange Ltd. (NCDEX)Multi Commodity Exchange (MCX)OTC Exchange of India Ltd (OTCEIL)Depository participant with NSDL CDSLCorporate Agents for Life Non-Life Insurance (both foreign / private and state owned insurance companies)One of the largest distributors of leading Mutual Funds in India Religare look Desk Philosop hyInvesting means laying out money promptly to receive money in real terms after fetching inflation into account, tomorrowThats because were realistic, experienced, backed by research and study and most importantly, client-driven.Empowering the InvestorThe Religare Research Desk has one key objective to empower you completely with Market Knowledge, Analysis and Advisory Services to help you prosper.Our team provides expert and seasonably analysis on equity and commodity to help you maximize your trading decisions. We offer value perspectives, suggest strategy, focus on opportunities for investment and growth, and try to reduce risk potential.Trading IdeasDaily Market StrategiesMonthly Updates enthronement IdeasTrading CallsCommodity ViewsReligare as a trading partnerReligare is driven by ethical and dynamic process for wealth creation. Religare Enterprise Limited through Religare Securities Limited, Religare Finevest Limited, Religare Commodities Limited and Religare Insurance Advisory Services Limited provides integrate financial services to its corporate, retail and wealth management clients. Religare operations are managed by highly skilled professionals who subscribe to Religare philosophy and are circularize across its country-wide telles.Offline Service of Religare Securities LimitedR-ALLYRELIGAREs ALLY also known as R-ALLY is a perfect partner for savvy investers. Experience the soothe of our elite dealing rooms where all your trading requirements would be taken care of by experienced, well informed and contemporary dealers. You will also have dedicated relationship managers to take care of your multiple investments needs.Online Service of Religare Securities LimitedR-ALLY LiteBrouser based plateformNo software installation needNSE cash segment, NSE FO and BSE on single plateformReal-time streaming quotesMultiple watch listsAlerts and triggers gamey key functionsOnline transfer of funds through multiple banks gate your record book balances and account information over internet, appendage and call centreTrade online and over phone at branchAccess to all your accounts through your customer relationship number (CRN)consecrated Relationship Managers for assisting multiple investment needsR-ALLY ProApplication based plateformNo software installation requiredNSE cash segment, NSE FO and BSE on single plateformReal-time streaming quotesMultiple watch listsAlerts and triggersHot key functionsOnline transfer of funds through multiple banksAccess your ledger balances and account information over internet, branch and call centre Trade online and over phone at branchAccess to all your accounts through your customer relationship number (CRN) devote Relationship Managers for assisting multiple investment needsHow we will make trade easierPersonal assistanceDedicated dealers for facilitating trading and post trade needsDedicated Relationship Managers for assisting multiple investment needsReasearch AdvisoryRegular news and updates on marketResearch services over SMS to keep you abreastDaily and periodic technical reportsA complete information report on results and exertion of individual companies. Complete reports on various economic sectors and their performance along with analysis of few major companies in that sectorTrading calls in Future OpinionDaily capsule of market indices and index movement, national and international corporate news, bulk trade deals and market gains and losers, information on mutual funds and their performance along with forth coming initial offering trakerAdd-OnsAccess to all your accounts through your Customer Relationship Number (CRN)Access your ledger balances and account information over internet, branches and call centreWhat is a repository?A depository can be compared to a bank. A depository holds securities (like shares, debentures, bonds and units) of investors in electronic form. Besides holding securities, a depository also provides services related to transactions i n securities.What are the benefits of depository system?The benefits of participating in a depository are fast transfer of securitiesno stamp duty on transfer of securities excretion of risks associated with physical certificates such as bad delivery, fake securities etcreduction in paperwork involved in transfer of securitiesreduction in transaction equalnomination facilitychange in cost recorded with Depository Participant (DP) gets registered with all companies in which investor holds securities electronically, eliminating the need to correspond with each of them distributivelytransmission of securities is through by DP, eliminating correspondence with companiesconvenient method of consolidation of portfolios/accountsholding investments in equity and debt instruments in a single account.What is a DP?As an investor you open a securities account with a DP. DPs are attached to the depositories very much the same way as commercial banks are attached to RBI. All interactions inclu ding account origin, dematerialization, transactions, pledge etc are done through the DP.How do I select a DP? argon all DPs the same?You can select your DP to open a demat account just like you select a bank for col a savings account. Some of the important factors for selection of a DP can beConvenienceproximity to the office/residence, business hours. stillreputation of the DP, past association, range of services etc. Find out if the DP is in a position to give the specific service you may need.Costthe service charges levied by DP and the service standard.What should I do when I want to open an account with a DP?The process of theory an account with a DP is similar to the possibility of a bank account. You can approach any DP of your choice and fill up an account opening form. At the time of opening an account, you have tosign an agreement with DP in a National Securities Depository Ltd (NSDL) prescribed standard agreement, which details your rights and duties and those of your DP. All investors have to submit their check of identity and consequence of address along with the prescribed account opening form.Proof of identityyour signature and photograph must be certify by an existing demat account holder with the same DP or by a bank manager. Alternatively, you can submit a re-create of Passport, Voters ID scorecard, Driving license or PAN card with photograph.Proof of addressyou can submit a copy of Passport, Voters ID card, Driving license, PAN card with photograph, Ration card or Bank passbook as proof of address. You must remember to take original documents to the DP for verification.Passport-size photographsDematerializationDematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP.The dematerialization system is an alternative to the physical being of securities. In this system securities are converted into the electronic form and deposited in a depos itory account in the investors name.In order to dematerialize certificates, an investor will have to first open an account with a DP and then request for the dematerialization of certificates by filling up a Dematerialization crave Form (DRF), which is available with the DP, and submitting the same along with the physical certificates. The investor has to ensure that before the certificates are handed over tothe DP for demat, they are defaced by scar Surrendered for Dematerialization on the face of the certificates.FeaturesHoldings in only those securities that are admitted for dematerialization by National Securities Depository Ltd (NSDL) can be dematerialized.Structure of holding in the securities should controvert with the account structure of the depository account. Now shares in different order of names can also be dematted.If the shares are in the name of X and Y, the same cannot be dematerialized into the account of either X or Y alone. However if the shares are in the nam e of X first and Y second, and the account is in the name of Y first and X second, then these shares can be dematerialized in this account.Only those holdings that are registered in the name of the account holder can be dematerialized. Physical shares which have not been transferred and are still there with a transfer deed cannot be dematted. Only a few companies have been given the allowance to offer Transfer-cum-Demat. The list of these companies can be viewed here.Can I dematerialized any share certificate?You can dematerialize only those certificates that are already registered in your name and are in the list of securities admitted for dematerialization at NSDL. All the scrips included in SP CNX Nifty and BSE Sensex have already joined NSDL. This list has more than 2,800 companies and is steadily growing. RematerializationRematerialization is the process by which a client can get his electronic holdings converted into physical certificates. The client has to submit the demat erialization request to the DP with whom he has an account along with a Remat request form. The physical shares will be posted by the company directly to the clients.TradesFor all sales made by clients, the shares will have to be given to the broker, so that the Pay In can be made by the broker to the stock exchange relate. For that its essential that the shares be transferred to the account of the broker well before the deadline date. You must confirm with your broker the settlement date and settlement number and then submit your instructions to your DP. Alsoits important to give the instructions to your DP as early as possible. self-confidencePledge enables you to obtain loans against your dematerialized shares. So you get liquidity without having to sell your shares. A highly simplified procedure may be availed of for pledging of securities in the electronic mode. The pledged securities continue tobe reflected in the DP account of the clients (pledgor) but the concerned securi ties are blocked and cannot be used for any transactions. As and when the pledg