Escolar Documentos
Profissional Documentos
Cultura Documentos
Finally, We would also like to express our deep sense of gratitude to prof.
Dharmesh Shah & Prof. Pallavi Oza ,an example of teaching excellence
who had a perform influence on our way and for providing necessary help
in the course of completing this project.
Bhavesh G. vora
Chirag B. Patel
Girish G. Sheladia
Kalpesh D. Prajapati
Ankit S.Kanani
Kamal V.Dhebaria
Place: Ahmedabad.
CERTIFICATE
INTRODUCTION TO GROUP
MEMBERS
Now a day‘s one can find that there is quite similarities in the
meaning of stock exchange &commodity exchange. Most of public
believe that there is no different between stock exchange
commodity exchange. However, in a basic sense there are huge
differences between the meanings of both the term. One can
classify the differences as follows:
Stock exchange means any place where the shares, bonds, and
debentures are traded. It means that the stock exchange helps in
dealing, issue and transactions of shares.
News on the stock market appears in different media every day. You hear
about it any time it reaches a new high or a new low, and you hear about
it daily in statements like 'The BSE Sensitive Index rose 5% today'.
Obviously, stocks and stock markets are important. Stocks of public
limited companies are bought and sold at a stock exchange. However,
what really are stock exchanges? Known also as the stock market or
bourse, a stock exchange is an organized marketplace for securities (like
stocks, bonds, options) featured by the centralization of supply and
demand for the transaction of orders by member brokers, for institutional
and individual investors. The exchange makes buying and selling easy.
For example, you don't have to actually go to a stock exchange, say, BSE
- you can contact a broker, who does business with the BSE, and he or
she will buy or sell your stock on your behalf.
All stock exchanges perform similar functions with respect to the listing,
trading, and clearing of securities, differing only in their administrative
machinery for handling these functions. Most stock exchanges are auction
markets, in which prices are determined by competitive bidding. Trading
may occur on a continuous auction basis, may involve brokers buying
from and selling to dealers in certain types of stock, or it may be
conducted through specialists dealing in a particular stock.
However, where did it all start? The need for stock exchanges developed
out of early trading activities in agricultural and other commodities.
During the middle Ages, traders found it easier to use credit that required
supporting documentation of drafts, notes, and bills of exchange. The
history of the earliest stock exchange, the French stock exchange, may be
traced back to 12th century when transactions occurred in commercial
bills of exchange. To control this budding market, Phillip, the Fair, of
France (1268-1314) created the profession of couratier de change, which
was the predecessor of the French stockbroker. At about the same time, in
Bruges (a prosperous centre of the low countries of Europe), merchants
began gathering in front of the house of the Van Der Buerse family to
engage in trading. Soon the name of the family became identified with
trading and in time, a 'bourse' came to signify a stock exchange. At the
same time, stock exchanges began to materialize in other trading centre
like the Netherlands (Amsterdam Bourse), Frankfurt (the Deutsche Stock
Exchange, formerly the Börse) the London Stock Exchange (LSE) in
England and Milan (the Borsa).
At that time, many stocks that were deemed not well enough for the
NYSE were traded outside on the curbs. This so called 'curb trading' has
now become the American Stock Exchange (AMEX) (see history:
AMEX) . Today, the NYSE and AMEX have been joined by the
NASDAQ and hundreds of local and international stock exchanges. By
the mid-1800s, many countries outside of Europe (including Canada and
Australia) began trading in securities. During the 19th and 20th centuries,
major exchanges opened in Asia, Eastern Europe, and parts of Africa and
Latin America.
The members at present contribute to this Fund Re.0.15 per Rs.1 lakh of
gross turnover, which is debited to their general charges account. The
Stock Exchange contributes on a quarterly basis 2.5% of the listing fees
collected by it. In addition, the entire interest earned by the Exchange on
1% security deposit kept with it by the companies making public/rights
issues is credited to the Fund. As per the SEBI directive, auction proceeds
in certain cases, where price manipulation / rigging were suspected, have
been impounded and transferred to the Fund. In addition, the surplus
lying in the account of the defaulters after meeting their liabilities on the
Exchange is released to them after transferring 5% of the surplus amount
to this Fund.
As at the end of June 30, 2002, the corpus of the Fund was Rs 157.03
crores.
Companies which have a paid-up capital* of more than Rs. 20 crores will
pay additional fee of Rs. 750/- for every increase of Rs. 1 crores or part
thereof.
In case of debenture capital (not convertible into equity shares)
ofcompanies, the fees will be charged @ 25% of the fees payable as
per the above mentioned scales.
*includes equity shares, preference shares, fully convertible debentures,
partly convertible debenture capital and any other security which will be
converted into equity shares.Kindly Note the last date for payment of
listing fee for the year 2004-05 is June 30, 2004
[XI] "Z" Group : The Exchange has introduced a new category called
"Z Group" from July 1999 for companies who have not complied with
and are in breach of provisions of the Listing Agreement. The number of
companies placed under this group as at the end of May, 2001 was
1,475.The number of companies listed at the Exchange as at the end of
May 2001 was 5,874. This is the highest number among the Stock
Exchanges in the country and in the world.
New Direct Listing norms
The Governing Board of the Exchange at its meeting held on 6th
August, 2002 amended the direct listing norms for companies listed on
other Stock Exchange(s) and seeking listing at BSE. These norms are
applicable with immediate effect.The company should have minimum
issued and paid up equity capital of Rs. 3 crores. The Company should
have profit making track record for last three years. The revenues/profits
arising out of extra ordinary items or income from any source of non-
recurring nature should be excluded while calculating distributable
profits. Minimum networth of Rs. 20 crores (networth includes Equity
capital and free reserves excluding revaluation reserves). Minimum
market capitalisation of the listed capital should be at least two times of
the paid up capital. The company should have a dividend paying track
record for the last 3 consecutive years and the minimum dividend should
be at least 10%. Minimum 25% of the company's issued capital should be
with Non-Promoters shareholders as per Clause 35 of the Listing
Agreement. Out of above Non Promoter holding no single shareholder
should hold more than 0.5% of the paid-up capital of the company
individually or jointly with others except in case of Banks/Financial
Institutions/Foreign Institutional Investors/Overseas Corporate Bodies
and Non-Resident Indians. The company should have at least two years
listing record with any of the Regional Stock Exchange. The company
should sign an agreement with CDSL & NSDL for demat trading.
Exchange looks over the commodities to be delivered from the open positions of members
5 days
prior to Open Short Position Open Long Position
the end of Sellers Buyers
the
contract
month.
Matching of Open
Positions in Between
Buyers & Sellers
Pay-in Pay-out
Position
Transfer takes
On Place
Delivery After Completion of Pay-in & Pay-Out process Warehouse Receipts received from the
day cseller are sent to the buyer
Eligibility Criteria for Membership
Entities :
Following entities are eligible to apply for membership
1)Individuals,
2)Registered firms,
3)Corporate bodies and
4)Companies as defined in the Companies Act 1956.
NetWorth:
Minimum prescribed net worth for an applicant is Rs. 50 lakh.
Net worth certificate should be computed for this purpose by following a
definition of net worth adopted by practising Chartered Accountants for
finalisation of accounts. Existing fund based asset , if any should be
excluded for calculation of net worth.
In case, the company is a member of any Commodity Exchange(s), it
should satisfy the combined minimum Net Worth requirements of all
these Exchanges including NMCEIL.
Paid-upCapital:
Minimum prescribed paid up capital for a corporate is Rs. 30 lakh.
In case of a partnership firm combined capital of all the partners should
be at-least Rs.30 lakh.
VSAT Connectivity
To attain the online connectivity with the Exchange through VSAT
members are required to place their orders for the VSAT directly to the
HCL Comnet. Following two options are available to the members of the
Exchange.
What is a "Commodity"?
Banks
Large Processors
Farmers
Traders
NMCE
Cardamom
Gold Study
Lin Seed
Pepper
Pulses
Rubber
Safflower seed
Sesame Seed
Silver Study
Sugar
Sunflower seed
Raw Jute
Wheat
Warehouses
AHMEDABAD (GUJARAT)
BANGLORE (KARNATAKA)
BHOPAL (MADHYA PRADESH)
BHOPAL (CHHATISGARH)
BHUBANESHWAR (ORISSA)
CHANDIGARH (PUNJAB)
CHANDIGARH (UTI CHANIDGARH)
CHANDIGARH (JAMMU & KASHMIR)
CHENNAI (TAMILNADU)
CHENNAI (PONDICHERRY)
DELHI (DELHI)
DELHI (UTTAR PRADESH)
DELHI (HARYANA)
GUWAHATI (ASSAM)
GUWAHATI (NAGALAND)
GUWAHATI (TRIPURA)
HYDERABAD (ANDHRA PRADESH)
JAIPUR (RAJASTHAN)
KOCHI (KERALA)
KOLKATA (WEST BENGAL)
LUCKNOW (UTTAR PRADESH)
LUCKNOW (UTTARANCHAL)
MUMBAI (GOA)
MUMBAI (MAHARASHTRA)
PANCHKULA (HARYANA)
PANCHKULA (HIMACHAL PRADESH)
PATNA (BIHAR)
PATNA (JHARKHAND)
Purpose of the Futures Market
Futures market is expected to help the market participants through two
vital economic functions, viz., Price Discovery and Price Risk
Management. At the macro level, the liquid and vibrant futures market
having nationwide participation also assists in sobering down inter-
seasonal and intra-seasonal price fluctuations. This not only helps in
bringing about reasonable stability in the prices of commodities, but also
supports farmers to get remunerative prices without adversely affecting
interests of consumers. Such a market also provides a market-based
alternative to government involvement like procurement at Minimum
Support Price and Public Distribution System.
We at the exchange would there fore like to take you back to the elapsed
history of Gold in India and the present trends of Gold through this
document.
For centuries, gold has meant wealth, prestige, and power, and its rarity
and natural beauty have made it precious to men and women alike.
Owing gold has long been a safeguard against disaster. Many times when
paper money has failed, men have turned to gold as the one true source of
monetary wealth.
The yellow metal used to play an important role in marriage and religious
festivals in India. In the Hindu, Jain and Sikh community, where women
did not inherit landed property whereas Gold and Silver jewellery was,
and still is, a major component of the gifts given to a woman at the time
of marriage. The changeover hands of Gold at the time of marriage are
from few grams to kgs. In the average middle class population, the
average gifts estimated would not be less than 100 gms per marriage and
even at conservative estimates of 50 grams are met through either new
purchases or by re-conversion of existing jewellery, making the Gold
market to the whopping size of 500 tonnes on an average ten millions
marriage per annum.
The existing social and cultural system continues to cause net Gold buyer
market and the Government Policies have to take note of the root cause of
Gold demand, which lies in the social and cultural system of India.
The Gold also occupies a significant position in the temple system where
Gold is used to prepare idol and devotees offer Gold in the temple. These
temples are run in trust and Gold with the trust rarely comes into re-
circulation.
So the consumer pays only Rs 162 per 10 gms against the Landed cost of
Rs.5,498/- per 10 gm and which is below 3% of total cost.
A second attempt to garner Gold was made in March, 1965 when a new
series of 7 per cent Gold Bonds 1980 was issued. Opportunity was given
to holders of unaccounted Gold to convert it into these bonds. The
quantity raised was 6.1 tonnes. A third series of Gold bonds designated as
National Defense Gold Bonds, 1980 at 6.5 per cent was issued in October
1965. Unlike the earlier two issues, which were repayable in Rupees (the
value of Gold being calculated at international prices), these bonds were
redeemable in Gold of standard purity at maturity. The quantity raised at
13.7 tonnes.
Strict Gold control remained in force till November 1966, when the rules
were amended, lifting the ban on manufacturing of ornaments of more
than 14 carat purity. The amendments also placed ceilings on individual
holdings and extended control over refineries and dealers. In September
1968, the Gold (Control) Act, 1968 was passed, establishing the scheme
of Gold control on a permanent statutory footing. Except for some minor
modifications incorporated in the Act in 1969, 1972 and 1973, the
structure of the Act did not undergo any change.
PHASE II: Steps to be taken by the Government and the RBI for
developing a well regulated market in India for Gold and Gold
derivatives including forward trading for resident and non-resident.
Another policy shift that became apparent in the late 1990s involved
the de-linking of Gold from the government's Anti-Black Money policy.
The new fiscal stance with regard to black money centered on
rationalization of the Income Tax structure and the creation of incentives
for revealing unaccounted wealth.
Representative of Gold Trade Cycle
COMMODITY FUTURES
BIGGER THAN STOCKS?
The global commodity trade is about three times the size of equities. But it is nowhere
as hot in India. Futures trading could very well change all that.
WHEN the stockmarket is in the middle of a bull run that has so much
momentum that it even takes a series of bomb blasts in Mumbai in its
stride, it is difficult to imagine that there can be another market that could
turn out to be bigger. But, globally, the size of the commodity trade is
about thrice that of equities. And judging by the way activity in the
commodity futures market is picking up, it could become as big as
equities in a whileBefore going on with that story, a bit about commodity
trading, particularly commodity futures, seems to be in order. There are
two kinds trade in commodities. The first is the spot trade, in which one
pays cash and carries away the goods. The second is futures trade. The
underpinning for futures is the warehouse receipt. A person deposits a
certain amount of, say, good X in a warehouse and gets a warehouse
receipt which allows him to ask for physical delivery of the good from
the warehouse. But someone trading in commodity futures need not
necessarily possess such a receipt to strike a deal. A person can buy or
sell a commodity future on an exchange based on his expectation of
where the price will go. Futures have something called an expiry date, by
when the buyer or the seller either closes (squares off) his account or
gives/takes delivery of the commodity. The broker maintains an account
for all dealing parties in which the daily profit or loss due to changes in
the futures price is recorded. Squaring off is done by taking an opposite
contract so that net outstanding is nil.
The present shift is as much towards better systems as away from the
existing agricultural policy which protected and promoted the sector
through procurement and controlled prices. "In view of the fiscal pressure
and that of WTO (World Trade Organization) to reduce direct support to
agriculture under the Agreement on Agriculture, towards a market-
oriented approach," explains the report of the Inter-ministerial Task Force
on Convergence of Securities and Commodity Derivative Markets headed
by Wajahat Habibullah, secretary, Department of Consumer Affairs.
A look at commodity exchanges will give an idea about their scope. In
the US, the Chicago Mercantile Exchange, over and above basic
commodities, deals in a basket of products based on equity indices,
interest rates, weather and energy. In the UK, commodities, equities and
interest rates are traded on the London International Financial Futures and
Options Exchange. So, for Indian exchanges, the potential is huge.
And they are poised for growth. According to the Habibullah task force:
"The total volume of futures trade has shown... about a two-fold increase
from 217.72 lakh tonnes in 2001-02 to 414.11 lakh tonnes in 2002-03. In
value terms, the turnover, which was about Rs 35,000 crore in 2001-02,
has risen to over Rs 100,000 crore in 2002-03." Minister for Consumer
Affairs, Food and Public Distribution Sharad Yadav has said the futures
trading volume is set to reach Rs 200,000 crore in 2003-04.
The Regulator
If that indeed comes true, the futures market will need a strong and
independent regulator. Unlike Sebi (Securities and Exchange Board of
India, the capital market regulator), which is an independent body, the
regulator of the commodities market, the Forward Markets Commission
(FMC), is under the Department of Consumer Affairs and depends on it
for funds. NCDEX managing director and CEO P.H. Ravikumar says:
"We have requested the government to grant more powers to the regulator
in order to ensure an orderly development of the commodity market. Due
to the possible interplay between the equity and commodity markets we
have recommended that there be greater co-operation (even a merger)
between FMC and Sebi. The government is examining these issues." The
co-operation between the regulators is not uncommon. In the US, for
example, capital market regulator Securities and Exchange Commission
(SEC) and commodity market regulator Commodity Futures Trading
Commission (CFTC) work closely with each other. They have even
issued rules jointly.
The Warehousing System
For commodity
futures to work,
the seller should
be able to deposit
the commodity at
warehouse nearest
to him and collect
the warehouse
receipt. The buyer
should be able to
take physical
delivery at a
location of his
choice on presenting the warehouse receipt. But in India at present, only a
few warehouses provide delivery for specific commodities. The
Habibullah task force report says: "...There are important gaps... A
sophisticated warehousing industry has yet to come about." Such a
system has to certify commodities for quantity and grade so that there are
no surprises for whoever takes final delivery. Warehouses can tie-up with
specialised agencies for this or build their own capabilities. N.K.
Choubey, chairman of NMCE and managing director of Central
Warehousing Corporation, says: "This means labs have to be set up to
take care of a group of warehouses in a region." CWC has 493
warehouses (capacity: 9.3 million tonnes).
Physical deliveries make up just 1-5% of commodity futures, but with the
growth of the market in absolute terms, volumes are expected to rise. As
there is a lack of a nodal agency for regulating the warehouses, exchanges
have to rely on the warehouses and also come up with their own methods
to improve systems.
P.H. Ravikumar feels the online N.K.Choubey emphasis that a Kailash Gupta says gold futures
warehouse receipt system will sophisticated warehousing will bring both speculators and
revolutionise the commodity system has to develop to bullion traders to the commodity
futures market in India by making facilitate the growth of exchanges and, thereby, give
delivery via online receipts commodity futures. turnover a fillip.
possible.
AHMEDABAD
Name of Stock The Stock Exchange, Ahmedabad
Exchange
Address Kamdhenu Complex, Opp. Sahajanand
College, Panjarapole, Ambawadi,
AHMEDABAD-380001.
Phone (+91-079) 6449460, 6446733,
6441842, 6443058
Fax (+91-079) 6442222
Tel. (+91-079) 6443131, 6447171
Fax (+91-079) 6449966 / 448822
BANGALORE
Name of Stock Bangalore Stock Exchange Ltd.,
Exchange
Address "Stock Exchange Towers",
No. 51, Ist Cross, J. C. Road,
BANGALORE : 560 027
Tel. (+91-0281) 2995229, 2995234,
2995235
Fax (+91-0281) 2995242 / 2277160
Tel. (+91-0281) 3311456
BARODA
Name of Stock Vadodara Stock Exchange Ltd.,
Exchange
Address Fortune Towers, Dalal Street,
Sayajigunj,
BARODA 390 005.
Tel. (+91-0265) 340378
Fax (+91-0265) 331452
E-mail vse@lwbdq.lwbbs.net
Tel. (+91-0265) 361433
BHUBANESWAR
Name of Stock Bhubaneswar S. E. Assoc. Ltd.
Exchange
Address Falcon House, A- 22 Jharpara, Cuttack
Road,
BHUBANESWAR 751 006.
Tel. (+91-0674) 582340, 582341, 582140
Fax (+91-0674) 582283
CALCUTTA
Name of Stock Calcutta Stock Exchange Assoc. Ltd.,
Exchange
Address 7 Lyons Range,
CALCUTTA 700 001.
Tel. (+91-33) 220 6136, 3741, 1489, 1488,
6987
Fax (+91-33) 2202514
Tel. (+91-33) 2206136
MADRAS
Name of Stock Madras Stock Exchange Ltd.,
Exchange
Address 11 Second Line Beach, Post Box No.
183,
MADRAS 600 001.
Tel. (+91-44) 510845, 512237
Fax (+91-044) 5244897
Tel. (+91-44) 5221070
COCHIN
Name of Stock Cochin Stock Exchange Ltd.,
Exchange
Address Post Box No. 3529, Veekshanam
Road,
Ernakulam,
COCHIN 682 035.
Tel. (+91-0484) 369020, 367728
Fax (+91-0484) 364864, 370471
Tel. (+91-0484) 364578, 367728
COIMBATORE
Name of Stock Coimbatore Stock Exchange
Exchange
Address "CSX Towers", 683-686 Trichy Road,
Singanallur,
COIMBATORE 641 005.
Tel. (+91-0422) 315100,315102
Fax (+91-0422) 314937
Tel. (+91-0422) 572714
GAUHATI
Name of Stock Gauhati Stock Exchange Ltd.,
Exchange
Address Saraf Buildings Annexe, A. T. Road,
GAUHATI 781 001(ASSAM).
Tel. (+91-0361) 533667, 533670, 72, 73
Fax (+91-0361) 543272
HYDERABAD
Name of Stock Hyderabad Stock Exchange Ltd.,
Exchange
Address 3-6-275 Himayatnagar,
HYDERABAD 500 029.
Tel. (+91-040) 597709, 10, 12
Fax (+91-040) 240804
Tel. (+91-040) 4618251
INDORE
Name of Stock Madhya Pradesh Stock Exc Ltd.,
Exchange
Address Rajani Bhawan, 3rd Floor, M. G. Road,
Opp. High Court,
INDORE 452 002.
Tel. (+91-0731) 432841-46
Fax (+91-0731) 432849
Tel. (+91-0731) 432844
JAIPUR
Name of Stock Jaipur Stock Exchange Ltd.,
Exchange
Address Rajasthan Chamber Bhavan, M. I.
Road,
JAIPUR 302 001.
Tel. (+91-0141) 564962, 568335, 563521,
560201
Fax (+91-0141 ) 563517
Tel. (+91-0141) 563521, 565163
KANPUR
Name of Stock Uttar Pradesh Exchange Assoc Ltd.,
Exchange
Address Padam Towers, 14/113 Civil Lines,
KANPUR 208 001.
Tel. (+91-0512) 293115, 293174, 293134,
293437
Fax (+91-0512) 293175
LUDHIANA
Name of Stock Ludhiana Stock Exchange Assoc. Ltd.,
Exchange
Address Phiroze Gandhi Market,
LUDHIANA 141 008.
Tel. (+91-0161) 39318, 39319
Fax (+91-161) 405756
MUMBAI
Name of Stock The Stock Exchange, Mumbai
Exchange
Address Phiroze Jeejeebhoy Towers, Dalal
Street,
MUMBAI 400 023.
Tel. (+91-22) 2655581, 2655626,
2655860-61
Fax (+91-22) 2658121
Tel. (+91-22) 265566
MANGALORE
Name of Stock Mangalore Stock Exchange Ltd.,
Exchange
Address Kodialbail, 4th floor, Ram Bhavan
Complex,
MANGALORE 575 003.
Tel. (+91-0824) 441214, 440813/ 581/
275/ 597/ 254
Fax (+91-0824) 440736
Tel. (+91-0824) 351137, 22361
NEW DELHI
Name of Stock Delhi Stock Exchange Assoc. Ltd.,
Exchange
Address 3&4/4B,
Asaf Ali Road, Near Turkman Gate
New Delhi - 110006.
Tel. (+91-11) 3724387, 3352951
Fax (+91-11) 3379660, 3271302
Tel. (+91-11) 6219593, 6420710
OTC EXCHANGE OF INDIA
Name of Stock OTC Exchange of India,
Exchange
Address 92 Maker Towers 'F', Cuffe Parade,
MUMBAI 400 005.
Tel. (+91-22) 2188164-68/2188511
Fax (+91-22) 2188012/2188503
Tel. (+91-22) 2068468
PATNA
Name of Stock Magadh Stock Exchange Association,
Exchange
Address Ashiana Plaza, 9th Floor, Budh Marg,
PATNA 800 001.
Tel. (+91-0612) 223644, 222852
Fax (+91-0612) 220960
President -
Tel. (+91-0612) 226568, 235712
Fax (+91-0612) 235712
PUNE
Name of Stock Pune Stock Exchange Ltd.,
Exchange
Address PMT Commercial Building, Deccan
Gymkhana,
PUNE 411 004.
Tel. 328771, 772, 782, 783, 786
Fax 212 328773
BSE TRAINING INSTITUTE(BTI)
INFORMATION
VISION
MISSION
To enter into alliances with reputed Institutes having similar goals &
objectives.
2. Books:-
Business environment
Financial Management – M.Y. Khan & P.K. Jain
3. References:-
Business Standard (The smart investors)
Economics Times
The Times of India
Gujarat Samachar
4. Visits:-
National Muti-Commodity exchange
Ahmedabad Stock exchange