At present, there are 24 stock exchanges in India.
The central government granted permanent recognition to the following stock exchanges:-
Mumbai Stock Exchange
Calcutta Stock exchange
Chennai Stock Exchange
Delhi Stock Exchange
Hyderabad Stock Exchange
Bangalore Stock Exchange
Ahmedabad Stock Exchange
The National Stock Exchange In India (NSEI) and Over The Counter Exchange of India (OTCEI) turned more and more stock exchanges towards computer-based trading.
1. NATIONAL STOCK EXCHANGE OF INDIA (NSEI)
National Stock Exchange of India is a leading stock exchange covering 370 cities across the country. It becomes operational on 3rd Nov. 1994 in Mumbai Pherwani Committee recommended the establishment of NSE.
NSE catered to the requirements of large investors. NSE was a promo by leading financial institutions like IDBI, ICICI, IFCI, LIC, GIC SBI, Canara Bank, Corporation Bank, OBC, PNB, ILFS. In 1993 it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956.
NSE started its operation in the Debt Market in July 1994, in Equity Market in Nov. 1994, and in June 2000 in Derivative Market. It brought forward a system that provided a fully automatic screen-based trading system for trading equity and preference shares, debentures, merchants, and coupons. It was also known as the NEAT system (National Exchange for Automatic Trading System).
For more info, you can visit
https://en.m.wikipedia.org/wiki/National_Stock_Exchange_of_India
2. OVER COUNTER EXCHANGE OF INDIA (OTHER)
OTCEI was started in 1992 to provide markets to smaller companies that cannot afford the high listing fees of large exchanges. It was promoted Jointly by IFCI, IDBI, ICICI, UTI, SBI Capital Markets. It aimed at creating a fully decentralized and transparent market. It is recognized under Securities Contracts and Regulations, Act 1956. Trading on OTCEI takes place through a computer network.
As per regulations, OTCEI can not distribute its income among its members by way of dividends. Instead, it has to use its income to further its objectives. Also, a company listed on any other stock exchange is not allowed to be listed on OTCEI. Similarly, a company listed on OTCEI is not allowed to be listed on any other stock exchange.
A company can trade across the country by listing in OTCEI. OTCEI does not have a trading hall. Dealers can transact through a central OTC Computer connected to computers in different centers. OTCEI permits only those investors to trade in the OTCEI, who are holding an "INVESTOTC Card."
For more info, you can visit
https://en.m.wikipedia.org/wiki/OTC_Exchange_of_India
3. SECURITY AND EXCHANGE BOARD OF INDIA (SEBI)
The Securities and Exchange Board of 1992 provides for the establishment of a board to protect investors' interest in securities and promote the development and regulation of the securities market.
Organizational Structure of SEBI
a. SEBI is working as a corporate body.
b. Its activities are divided into five departments. Each department is headed by an executive director.
c. The head of SEBI is in Mumbai, and its branch office is in Kolkata, Chennai, and Delhi.
d. SEBI has formed two advisory committees to deal with the primary and secondary markets.
e. These committees consist of market players, investors associations, and eminent persons.
'SEBI is the watchdog of the stock market' as SEBI was established in 1988 to regulate the stock exchange's functioning and protect the interest of investors.
SEBI was granted legal status in May 1992.
For more info, you can visit
https://en.m.wikipedia.org/wiki/Securities_and_Exchange_Board_of_India
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