NSE BSE Listing

7/30/2019 NSE BSE Listing

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By:

S.Maithreyi

09011U0505


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NSE of India Located in Mumbai ,India 11th largest stock exchange in

world with

market capitalization

(1.178 trillion $)

Largest stock exchange

in India in term of no. of

trades done in both

in equity and derivativestrading


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Origin of

NSE was recommended by Pherwani committeein 1991.

NSE of India was promoted by leading Financial

institutions( IDBI,ICICI,IFCI etc..) at the behestof the Government of India.

Incorporated in November 1992 as a tax-payingcompany.

In April 1993recognized as stock exchangeSecurities Contracts (Regulation) Act, 1956.


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In June 1994 started operations in WDM

In Nov 1994 operations in capital market

In June 2000-Derivatives

April 1996 Launch of S&P CNX Nifty

History of


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Managing Director & CEO

Ms. Chitra RamkrishnaNational Stock Exchange ofIndia Limited


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Purpose or Objectives of NSE

Establishing nationwide trading facility

Ensuring equal access to investors

Providing fair, efficient & transparentsecurities market using electronic tradingsystem

Enabling shorter settlement cycles andbook entry settlements

Meeting International benchmarks andstandards


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Markets

Currently, NSE has the following major segments of thecapital market:

Equities

Equities Indices

Mutual Funds

Exchange Traded Funds

Initial Public Offerings Security Lending and Borrowing Scheme


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Markets

Derivatives

Equity Derivatives (including Global Indices like S&P500, Dow Jones and FTSE )

Currency Derivatives Interest Rate Futures

Debt

Retail Debt Market

Wholesale Debt Market Corporate Bonds


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S&P CNX NITFY

The S&P CNX Nifty ( Nifty 50 or simply Nifty) is a

composite of the top 50 stocks listed on the NationalStock Exchange (NSE), representing 24 different sectorsof the economy.

CRISIL NSENIFTY

50


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S&P CNX NITFY

TATA Motors

Ranbaxy

TATA steel

Grasim Indus.

Axis bank GAIL

NTPC

Siemens

BPCL

IDBI

CIPLA

HERO HONDA Etc.


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Advantages of NSE

Wider accessibility

Screen based trading

Non-disclosure of the trading members identity Transparent transaction

Matching of orders

Trading in dematerialized form Effective settlement of corporate benefit


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Trading hours

Trading takes place on all days of the week exceptSaturdays &

Sundays.

Regular trading session Normal Market Open: 09:15 hrs

Normal Market Close: 15:30 (3:30) hrs


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BSE of India Located at Dalal street, Mumbai

India.

10th largest stock exchange in worldwith market capitalization

(1.32 trillion $)

Asias 1st S.E and 2nd Leading S.E inIndia.

Corporatized and demutualised entity

(converting not-for-profit exchangesto for-profit and then shareholdercompanies in order to go public.)


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BSE includes two leading global exchanges, Deutsche Bourse andSingapore Exchange as strategic partners. Also recently with S&PDOW JONES INDICES on 19 February 2013


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No 1 S.E in terms of listed members

5th most active S.E in handling transactions through

electronic traded system. Indias 1st S.E $ 2nd in the world to obtain an ISO

9001:2000 certification.

1st in country and 2nd in world to receive Information

Security Management System Standard BS 7799-2-2002certification for its On-Line trading System (BOLT-8million orders per day ).


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History of

Started with a group of four Gujarati and one Parsistockbroker under banyan trees in front of Mumbai'sTown Hall.

Moved to Dalal Street in 1874 and in 1875 became anofficial organization known as 'The Native Share & StockBrokers Association'.

In 1956 , 1st S.E recognized by India.

In 1986 - BSE SENSEX index

switched to an electronic trading system in 1995.


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Managing Director & CEO

Mr. Ashish ChouhanBSE India.


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BSEs popular equity index - the S&P BSE SENSEX [FormerlySENSEX ] - is India's most widely tracked stock market benchmarkindex. It is traded internationally on the EUREX as well as leadingexchanges of the BRCS nations (Brazil, Russia, China and South

Africa).

SENSEX 30 companies

SENSITIVE INDEX SENSEX


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Advantages of

Efficient and transparent market for trading in equity,debt instruments, derivatives, mutual funds

trading in equities of small-and-medium enterprises(SME).

Around 6000 companies are listed in BSE.

Offer services to capital market participants including risk

management, clearing, settlement, market data servicesand education.


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Trading hours

The hours of operation for the BSE quoted above arestated in terms the local time (GMT + 5:30). BSE's

normal trading sessions are on all days of the weekexcept Saturday, Sundays and holidays declared by theExchange.

Trading Session09:15 - 15:30


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Listing Procedure In StockExchange

Listing : Process of including securities of a company ina S.E for the purpose of trading .

The objectives of listing are mainly to :

provide liquidity to securities;

mobilize savings for economic development;

protect interest of investors by ensuring full disclosures.

Listing procedure is regulated under the guidance ofSecurities contract Regulations Act and SEBI.


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What all are needed while listing down inS.E ?

Important documents of company like

Memorandum of association

Article of association

Prospectus, directors report

Annual accounts

Companys activities ,capital structure,

distribution of dividends, shares and bonus.All these details along with application for listing .


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NSE listing procedure

Securities listed on the Exchange are required to

fulfil the eligibility criteria for listing.

Eligibility Criteria for Listing

IPOs by Companies1. The paid up equity capital of the applicant

shall not be less than Rs. 10 crores and the

capitalisation of the applicants equity shallnot be less than Rs. 25 crores


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2. The Issuer shall have adhered to conditions precedent to

listing as emerging from inter-alia from Securities Contracts

(Regulations) Act 1956, Companies Act 1956, Securities and

Exchange Board of India Act 1992.3. At least three years track record.

4. The applicant desirous of listing its securities should satisfy

the exchange on the following:

a) No disciplinary action by other stock exchanges andregulatory authorities in past three years

b) Redressal Mechanism of Investor grievance

c) Distribution of shareholding

d) Details of Litigation

e) Track Record of Director(s) of the Company


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Listing Process

An Issuer has to take various steps prior to making anapplication for listing its securities on the NSE. These steps

are essential to ensure the compliance of certain requirements

by the Issuer before listing its securities on the NSE. The

various steps to be taken include:

Approval of Memorandum and Articles of Association

Approval of draft prospectus

Submission of Application

Listing conditions and requirements


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Listing fee


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Listing agreements

When company is eligible for listing itssecurities , the company should berequired to execute listing agreements

with S.E. Listing agreements contains obligations

and restrictions imposed on company by

S.E.

S


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BSE listing procedureA company intending to have its securities listed on BSE has tocomply with the listing requirements prescribed by it. Some of the

requirements are as under :

Minimum Listing Requirements for New Companies

Minimum Requirements for Companies Delisted by BSE seekingrelisting on BSE

Permission to Use the Name of BSE in an Issuer Company'sProspectus

Submission of Letter of Application

Allotment of Securities

Trading Permission

Requirement of 1% Security

Payment of Listing Fees

Compliance with the Listing Agreement

Cash Management Services (CMS) - Collection of Listing Fees


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1. Minimum Listing Requirements for New Companies

The following eligibility criteria have been prescribed for listing ofcompanies on BSE, through Initial Public Offerings (IPOs) & Follow-

on Public Offerings (FPOs):The minimum post-issue paid-up capital of the applicant companyshall be Rs. 10 crore for IPOs & Rs.3 crore for FPOs; and

The minimum issue size shall be Rs. 10 crore; and

The minimum market capitalization of the Company shall be Rs. 25

crore

The applicant, promoters and/or group companies, shall not be indefault in compliance of the listing agreement.

The above eligibility criteria would be in addition to the conditionsprescribed under SEBI (Issue of Capital & Disclosure Requirements)Regulations, 2009.


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Following process takes place :

Submission of Letter of Application

Allotment of Securities

Trading Permission

Requirement of 1% Security

Listing fees

Compliance with the Listing Agreement

Listing fees


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Listing fees


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Documents

NSE BSE Listing