ABSTRACT

The goal of this project was to achieve a basic understanding of the stock market
through research and trading simulation. By using proper investment and technical
analysis strategies in addition to online simulation tools, investment theories were
put into practice. During the simulation, stock trades were made based on different
strategies. Results from several trading strategies were compared according on
their profitability. Effectiveness of each strategy was also discussed.
 CONTENT
S.NO. TOPICS PAGE.NO.
1 Introduction about NSEI 1
2 Meaning & Definition 2
3 Features of stock exchange 3
4 Services given by stock exchange to investors 4
5 Services given by stock exchange to companies 4-5
6 Role of stock exchanges in capital market of 5-6
India
7 Trading procedure on a stock exchange 7
8 Listed companies in NSE 8-11

9 Conclusion 12
10 Bibliography 13
INTRODUCTION
National Stock Exchange of India:

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of
India, located in Mumbai . The NSE was established in 1992 as the first demutualized electronic
exchange in the country. NSE was the first exchange in the country to provide a modern, fully
automated screen-based electronic trading system which offered easy trading facility to the
investors spread across the length and breadth of the country. Vikram Limaye is Managing
Director & Chief Executive Officer (MD & CEO) of NSE.

NSE was set up by a group of leading Indian financial institutions at the behest of the
government of India to bring transparency to the Indian capital market. Based on the
recommendations laid out by the government committee, NSE has been established with a
diversified shareholding comprising domestic and global investors. The key domestic investors
include Life Insurance Corporation of India, State Bank of India, IFCI Limited IDFC Limited
and Stock Holding Corporation of India Limited. And the key global investors are Gagil FDI
Limited, GS Strategic Investments Limited, SAIF II SE Investments Mauritius Limited, Aranda
Investments (Mauritius) Pte Limited and PI Opportunities Fund I.[3]

NSE offers trading, clearing and settlement services in equity, equity derivatives, debt
and currency derivatives segments. It is the first exchange in India to introduce electronic trading
facility thus connecting the investor base of the entire country. NSE has 2500 VSATs and 3000
leased lines spread over more than 2000 cities across India.

The exchange was incorporated in 1992 as a tax-paying company and was recognized as
a stock exchange in 1993 under the Securities Contracts (Regulation) Act, 1956, when P. V.
Narasimha Rao was the Prime Minister of India and Manmohan Singh was the Finance Minister.
NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The
capital market (equities) segment of the NSE commenced operations in November 1994, while
operations in the derivatives segment commenced in June 2000.

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MEANING:

Stock Exchange (also called Stock Market or Share Market) is one important constituent
of capital market. Stock Exchange is an organized market for the purchase and sale of industrial
and financial security. It is convenient place where trading in securities is conducted in
systematic manner i.e. as per certain rules and regulations.

It performs various functions and offers useful services to investors and borrowing
companies. It is an investment intermediary and facilitates economic and industrial development
of a country.

Stock exchange is an organized market for buying and selling corporate and other
securities. Here, securities are purchased and sold out as per certain well-defined rules and
regulations. It provides a convenient and secured mechanism or platform for transactions in
different securities. Such securities include shares and debentures issued by public companies
which are duly listed at the stock exchange, and bonds and debentures issued by government,
public corporations and municipal and port trust bodies.

Stock exchanges are indispensable for the smooth and orderly functioning of corporate
sector in a free market economy. A stock exchange need not be treated as a place for speculation
or a gambling den. It should act as a place for safe and profitable investment, for this, effective
control on the working of stock exchange is necessary. This will avoid misuse of this platform
for excessive speculation, scams and other undesirable and anti-social activities.

Definitions of Stock Exchange

According to Husband and Dockerary,

"Stock exchanges are privately organized markets which are used to facilitate trading in
securities."

The Indian Securities Contracts (Regulation) Act of 1956, defines Stock Exchange as,

"An association, organization or body of individuals, whether incorporated or not, established for
the purpose of assisting, regulating and controlling business in buying, selling and dealing in
securities."
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FEATURES OF STOCK EXCHANGE:

Characteristics or features of stock exchange are: -

1. Market for securities: Stock exchange is a market, where securities of corporate bodies,
government and semi-government bodies are bought and sold.
2. Deals in secondhand securities: It deals with shares, debentures bonds and such securities
already issued by the companies. In short it deals with existing or secondhand securities
and hence it is called secondary market.
3. Regulates trade in securities: Stock exchange does not buy or sell any securities on its
own account. It merely provides the necessary infrastructure and facilities for trade in
securities to its members and brokers who trade in securities. It regulates the trade
activities to ensure free and fair trade
4. Allows dealings only in listed securities: In fact, stock exchanges maintain an official list
of securities that could be purchased and sold on its floor. Securities which do not figure
in the official list of stock exchange are called unlisted securities. Such unlisted securities
cannot be traded in the stock exchange.
5. Transactions effected only through members: All the transactions in securities at the
stock exchange are affected only through its authorized brokers and members. Outsiders
or direct investors are not allowed to enter in the trading circles of the stock exchange.
Investors must buy or sell the securities at the stock exchange through the authorized
brokers only.
6. Association of persons: A stock exchange is an association of persons or body of
individuals which may be registered or unregistered.
7. Recognition from Central Government: Stock exchange is an organized market. It
requires recognition from the Central Government.
8. Working as per rule: Buying and selling transactions in securities at the stock exchange
are governed by the rules and regulations of stock exchange as well as SEBI Guidelines.
No deviation from the rules and guidelines is allowed in any case.
9. Specific location: Stock exchange is a marketplace where authorized brokers come
together daily (i.e. on working days) on the floor of market called trading circles and
conduct trading activities. The prices of different securities traded are shown on
electronic boards. After the working hours market is closed. All the working of stock
exchanges is conducted and controlled through computers and electronic system.
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SERVICES GIVEN BY STOCK EXCHANGE TO INVESTORS

1. Provides liquidity to investment: Stock exchange provides liquidity (i.e. easy convertibility to
cash) to investment in securities. An investor can sell his securities at any time because of the
ready market provided by the stock exchange. Stock exchange provides easy marketability to
corporate securities.
2. Provides collateral value to securities: Stock exchange provides better value to securities as
collateral for a loan. This facilitates borrowing from a bank against securities on easy terms.
3. Offers opportunity to participate in the industrial growth: Stock exchange provides capital
for industrial growth. It enables an investor to participate in the industrial development of the
country.
4. Estimates the worth of securities: Stock exchange provides the facility of knowing the worth
(i.e. true market value) of investment due to quotations (i.e. price list) and reports published
regularly by the exchange. This type of information guides investors as regards their future
investments. They can purchase or sell securities as per the price trends (i.e. latest price value) in
the market.
5. Offers safety in corporate investment: An investor can invest his surplus money (i.e. extra
money) in the listed securities with reasonable safety. The risk in such investment is reduced
considerably due to the supervision of stock exchange authorities on listed companies. Moreover,
securities are listed only when the exchange authorities are satisfied as regards legality and
solvency of company concerned. Such scrutiny (detailed checking) avoids listing, of
securities of unsound companies (i.e companies with bad financial status).

SERVICES GIVEN BY STOCK EXCHANGE TO COMPANIES

1. Widens market for securities: Stock exchange widens the market for the listed
securities and enables the companies to collect capital for promotion, expansion and
modernization purpose. It indirectly provides financial support to companies /
corporations.
2. Creates goodwill and reputation: Stock exchange enhances the goodwill and the
reputation of the companies whose securities are listed. Listing acts as a character
certificate given to a company. It gives prestigious position to company.
3. Facilitates fair pricing of listed securities: The market price of listed securities tends to
be slightly higher in relation to earnings and property values.

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 4. Provides better response from investors: Listed securities get better response from the
investor due to safety and security. Listing of securities is a unique service which stock
exchanges offer to companies. It is a moral support given to stable companies.
5. Facilitates quick selling of securities: Stock exchange enables companies to sell their
securities easily and quickly. This is natural as investors always prefer to invest money in
listed securities.

ROLE OF STOCK EXCHANGES IN CAPITAL MARKET OF INDIA

Stock Exchanges play a crucial role in the consolidation of a national economy in general and in
the development of industrial sector. It is the most dynamic and organized component of capital
market. Especially, in developing countries like India, the stock exchanges play a cardinal role in
promoting the level of capital formation through effective mobilization of savings and ensuring
investment safety.

1. Effective Mobilization of savings: Stock exchanges provide organized market for

individual as well as institutional investors. They regulate the trading transactions with
proper rules and regulations in order to ensure investor's protection. This helps to
consolidate the confidence of investors and small savers. Thus, stock exchanges attract
small savings especially of large number of investors in the capital market.
2. Promoting Capital formation: The funds mobilized through capital market are provided
to the industries engaged in the production of various goods and services useful for the
society. This leads to capital formation and development of national assets. The savings
mobilized are channelized into appropriate avenues of investment.
3. Wider Avenues of investment: Stock exchanges provide a wider avenue for the
investment to the people and organizations with investible surplus. Companies from
diverse industries like Information Technology, Steel, Chemicals, Fuels and Petroleum,
Cement, Fertilizers, etc. offer various kinds of equity and debt securities to the investors.
Online trading facility has brought the stock exchange at the doorsteps of investors
through computer network. Diverse type of securities is made available in the stock
exchanges to suit the varying objectives and notions of different classes of investor.
Necessary information from stock exchanges available from different sources guides the
investors in the effective management of their investment portfolios.
4. Liquidity of investment: Stock exchanges provide liquidity of investment to the
investors. Investors can sell out any of their investments in securities at any time during
trading days and trading hours on stock exchanges. Thus, stock exchanges provide
liquidity of investment. The online trading and online settlement of demand securities
facilitates the investors to sell out their investments and realize the proceeds within a day
or two. Even investors can switch over their investment from one security to another
according to the changing scenario of capital market.

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5. Investment priorities: Stock exchanges facilitate the investors to decide his investment
priorities by providing him the basket of different kinds of securities of different
industries and companies. He can sell stock of one company and buy a stock of another
company through stock exchange whenever he wants. He can manage his investment
portfolio to maximize his wealth.
6. Investment safety: Stock exchanges through their by-laws, Securities and Exchange
Board of India (SEBI) guidelines, transparent procedures try to provide safety to the
investment in industrial securities. Government has established the National Stock
Exchange (NSE) and Over the Counter Exchange of India (OTCEI) for investors' safety.
Exchange authorities try to curb speculative practices and minimize the risk for common
investor to preserve his confidence.
7. Wide Marketability to Securities: Online price quoting system and online buying and
selling facility have changed the nature and working of stock exchanges. Formerly, the
dealings on stock exchanges were restricted to its headquarters. The investors across the
country were absolutely in dark about the price fluctuations on stock exchanges due to
the lack of information. But today due to Internet, online quoting facility is available at
the computers of investors. As a result, they can keep track of price fluctuations taking
place on stock exchange every second during the working hours. Certain T.V. Channels
like CNBC are fully devoted to stock market information and corporate news. Demat
facility has revolutionized the procedure of transfer of securities and facilitated
marketing.
8. Financial resources for public and private sectors: Stock Exchanges make available
the financial resources available to the industries in public and private sector through
various kinds of securities. Due to the assurance of liquidity, marketing support,
investment safety assured through stock exchanges, the public issues of securities by
these industries receive strong public response (resulting in over subscription of issue).
9. Funds for Development Purpose: Stock exchanges enable the government to mobilize
the funds for public utilities and public undertakings which take up the developmental
activities like power projects, shipping, railways, telecommunication, dams & roads
constructions, etc. Stock exchanges provide liquidity, marketability, price continuity and
constant evaluation of government securities.
10. Indicator of Industrial Development: Stock exchanges are the symbolic indicators of
industrial development of a nation. Productivity, efficiency, economic-status, prospects
of each industry and every unit in an industry is reflected through the price fluctuation of
industrial securities on stock exchanges. Stock exchange Sensex and price fluctuations of
securities of various companies tell the entire story of changes in industrial sector.

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TRADING PROCEDURE ON A STOCK EXCHANGE
1. Selection of a broker: The buying and selling of securities can only be done through
SEBI registered brokers who are members of the Stock Exchange. The broker can be an
individual, partnership firms or corporate bodies. So, the first step is to select a broker
who will buy/sell securities on behalf of the investor or speculator.
2. Opening Demat account with depositary: Demat account refer to an account which an
Indian citizen must open with depositary participant to trade in listed securities in
electronic form. Second step in trading procedure is to open a demat account.
The security is held in the electronic form by a depositary. Depositary is an organization
which holds securities (e.g. shares, debentures, bonds, mutual funds, etc.) at present in
India there are two depositaries.
3. Placing the order: After opening the demat account, the investor can place order. The
order can be placed to the broker either personally or through phone, email, etc.
Investor must place the order very clearly specifying the range of price at which
securities can be bought or sold.
4. Executing the order: As per the instructions of the investor, the execute the order i.e. he
buys or sells the securities. Broker prepares a contract note for the order executed. The
contract note contains the name and the price of the securities, name of parties and
brokerage charged by him. Contract note is signed by the broker.
5. Settlement: This means actual transfer of securities. This is the last stage in the trading of
securities done by the broker on behalf of their client. There can be two types of
settlement.
• On the spot settlement: It means settlement is done immediately on spot
settlement follows. T +2 rolling settlement. This means any trade taking place on
Monday gates settled by Wednesday.
• Forward settlement: It means settlement will take place on some future date. It
can be T +5 or T +7, etc. all trading in stock exchanges takes place between 9.55
am and 3.30 pm. Monday to Friday.

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25 LISTED COMPANIES IN STOCK EXCHANGE OF INDIA

1. AXIS BANK
2. BHARTI AIRTEL
3. BAJAJ AUTO
4. CIPLA
5. COAL INDIA
6. HDFC BANK
7. HERO MOTOCORP
8. HINDUSTAN UNILEVER
9. HOUSING DEVELOPMENT FINANCE CORPORATION
10. ITC
11. ICICI BANK
12. INFOSYS
13. KOTAK MAHINDRA BANK
14. MAHINDRA & MAHINDRA
15. MARUTI SUZUKI
16. NTPC
17. OIL AND NATURAL GAS CORPORATION
18. POWER GRID CORPORATION OF INDIA
19. RELIANCE INDUSTRY
20. STATE BANK OF INDIA
21. SUN PHARMACEUTICAL
22. TATA CONSULTANCY SERVICES
23. TATA MOTORS
24. TATA STEEL
25. WIPRO

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 LISTING AND SHAREHOLDING
1. AXIS BANK: Axis Banks's equity shares are listed on the Bombay Stock Exchange and
National Stock Exchange of India. The company's global depository receipts (GDRs) are
listed on the London Stock Exchange.
2. BHARTI AIRTEL: In 1999, Bharti Enterprises acquired control of JT Holdings, and
extended cellular operations to Karnataka and Andhra Pradesh. In 2000, Bharti acquired
control of Skycell Communications, in Chennai. In 2001, the company acquired control
of Spice Cell in Calcutta. Bharti Enterprises went public in 2002, and the company was
listed on Bombay Stock Exchange and National Stock Exchange of India. In 2003, the
cellular phone operations were re-branded under the single Airtel brand. In 2004, Bharti
acquired control of Hexacom and entered Rajasthan. In 2005, Bharti extended its
network to Andaman and Nicobar. This expansion allowed it to offer voice services
across India.
3. BAJAJ AUTO: Bajaj Auto's equity shares are listed on Bombay Stock Exchange where
it is a constituent of the BSE SENSEX index, and the National Stock Exchange of India
where it is a constituent of the CNX Nifty
4. CIPLA: The equity shares of Cipla are listed on the Bombay Stock Exchange, where it
is a constituent of the BSE SENSEX index, and the National Stock Exchange of India,
where it is a constituent of the CNX Nifty. Its Global Depository Receipts (GDRs) are
listed on the Luxembourg Stock Exchange.
5. COAL INDIA: Listing: CIL's equity shares are listed on Bombay Stock Exchange
where it is a constituent of the BSE SENSEX index,Scripwise Weightages in S&P BSE
SENSEX SE India 31 Aug 2013 and the National Stock Exchange of India where it is a
constituent of the S&P CNX Nifty.
6. HDFC BANK: The equity shares of HDFC Bank are listed on the Bombay Stock
Exchange and the National Stock Exchange of India. Its American Depository Shares are
listed on NYSE and the global depository receipt are listed on the Luxembourg Stock
Exchange where two GDRs represent one equity share of HDFC Bank.
7. HERO MOTOCORP: The equity shares of Hero MotoCorp are list National, where it
is a constituent of the S&P CNX Nifty.
8. HINDUSTAN UNILEVER: The equity shares of Hindustan unilever are listed on
the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, and
the National Stock Exchange of India, where it is a constituent of the S&P CNX Nifty
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9. HOUSING DEVELOPMENT FINANCE CORPORATION: Listing: The equity
shares of HDFC are listed on Bombay Stock Exchange where it is a constituent of
the BSE SENSEX index, and the National Stock Exchange of India where it is a
constituent of the S&P CNX Nifty.
10. ITC: ITC's equity shares are listed on Bombay Stock Exchange, National Stock
Exchange of India and Calcutta Stock Exchange. The company's Global Depository
Receipts (GDRs) are listed on the Luxembourg Stock Exchange.
11. ICICI BANK: The National Stock Exchange was promoted by India's leading financial
institutions (including ICICI Ltd.) in 1992 on behalf of the Government of India with the
objective of establishing a nationwide trading facility for equities, debt instruments and
hybrids, by ensuring equal access to investors all over the country through an appropriate
communication network.
12. INFOSYS: In India, shares of Infosys are listed at BSE where it is included in BSE
SENSEX and NSE where it is included in CNX NIFTY. Its shares are listed by way
of American Depositary Receipts at NYSE.
13. KOTAK MAHINDRA BANK: Kotak Mahindra bank equity shares are listed
on Bombay Stock Exchange, National Stock Exchange of India.
14. MAHINDRA & MAHINDRA: Mahindra and Mahindra’s equity shares are listed
on Bombay Stock Exchange, National Stock Exchange of India.
15. MARUTI SUZUKI: The equity shares of Maruti Suzuki are listed on Bombay Stock
Exchange where it is a constituent of the BSE SENSEX index, and the National Stock
Exchange of India where it is a constituent of the S&P CNX Nifty.
16. NTPC: NTPC got listed on BSE and NSE on 5 November 2004. Against the issue price
of INR 62 per share, it closed the first day of listing with INR 75.55 per share. On the
day of listing, it become the third largest company in India in terms of market
capitalization.
17. OIL AND NATURAL GAS CORPORATION: The equity shares of ONGC are listed
on the Bombay Stock Exchange, where it is a constituent of the BSE
SENSEX index, and the National Stock Exchange of India, where it is a constituent of
the S&P CNX Nifty.

10
18. POWER GRID CORPORATION OF INDIA: POWERGRID is listed on both
the BSE and the NSE. As of 30 September 2010, there were 792,096 equity shareholders
holders in POWERGRID. Initially, POWERGRID managed transmission assets owned
by NTPC, NHPC Limited ("NHPC") and North-Eastern Electric Power Corporation
Limited.
19. RELIANCE INDUSTRY: The company's equity shares are listed on the National Stock
Exchange of India Limited (NSE) and the BSELimited. The Global Depository
Receipts (GDRs) issued by the Company are listed on Luxembourg Stock Exchange.
20. STATE BANK OF INDIA: As on 31 March 2017, Government of India held around
61.23% equity shares in SBI. The Life Insurance Corporation of India, itself state-
owned, is the largest non-promoter shareholder in the company with 8.82%
shareholding.
21. SUN PHARMACEUTICAL: Sun Pharma was listed on the stock exchange in 1994 in
an issue oversubscribed 55 times. The founding family continues to hold a majority stake
in the company. Today Sun Pharma is the second largest and the most profitable
pharmaceutical company in India, as well as the largest pharmaceutical company by
market capitalization on the Indian exchanges.
22. TATA CONSULTANCY SERVICES: The equity shares of TCS are listed on
the Bombay Stock Exchange, where it is a constituent of the BSE SENSEX index, and
the National Stock Exchange of India, where it is a constituent of the S&P CNX Nifty.
23. TATA MOTORS: Tata Motors is listed on the (BSE) Bombay Stock Exchange, where
it is a constituent of the BSE SENSEX index, the National Stock Exchange of India, and
the New York Stock Exchange
24. TATA STEEL: The equity shares of Tata Steel are listed on the Bombay Stock
Exchange, where it is a constituent of the BSE SENSEX index, and the National Stock
Exchange of India, where it is a constituent of the S&P CNX Nifty.
25. WIPRO: Wipro's equity shares are listed on Bombay Stock Exchange where it is a
constituent of the BSE SENSEX index, and the National Stock Exchange of India where
it is a constituent of the S&P CNX Nifty. The American Depositary Shares of the
company are listed at the NYSEsince October 2000.

11
Conclusion
A stock exchange is an exchange where traders and stockbrokers buy and sell shares of stock,
bonds and other securities. It also offers facilities for issue and redemption of securities and
other financial instruments. Stock issued by listed companies and unit trusts, bonds and
pooled investment products can be traded on a stock exchange. A stock exchange functions as
a 'continuous auction' market where transactions are conducted between the buyers and
sellers.

A stock exchange plays an important role in the economy. It helps to raise capital for
business, mobilize savings for investment, facilitates the growth of companies, and enables
profit sharing. It assists in creating investment opportunities for small investors and raising
capital for development projects taken up by the government. It acts as a barometer of the
economy.

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 BIBLIOGRAPHY

BOOKS:

• R.K. Sharma, Shashi K. Gupta, Rahul Sharma; 2019: Business Studies and Management; Kalyani
Publishers: (19th Ed.); P. 59-92.
• Shashi K. Gupta, Rahul Sharma;2020: Business Studies and Management; Kalyani Publishers:
(20th Ed.); P. 100-123
• Rajesh Kumar, DN Mishra, Rakesh Kr.; 2018: The elements of Business Studies and
Management: CHSE-ODISHA; P. 45-56

NEWS PAPER:

1. THE TIMES OF INDIA

2. HINDUSTAN TIME

INTERNET:
• https://medium.com/@askteek/the-history-of-stock-exchanges-in-india-
c97f1ec6f1c1#:~:text=Corporate%20shares%20started%20being%20traded,Bo
mbay%20under%20a%20banyan%20tree.
• https://en.wikipedia.org/wiki/Stock_exchange
• https://www.yourarticlelibrary.com/stock-exchange/history-of-stock-exchange-in-
india/23488
• https://enrichbroking.in/indian-share-market-history

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