Friday, January 4, 2013



  • India’s financial market is one of the oldest in the world
  • It is considered the fastest growing and strongest among emerging economies
  • Financial markets in India are under the purview of the Capital Markets Division of the Department of Economic Affairs of the Ministry of Finance
  • The markets in India are regulated by the Securities and Exchange Board of India (SEBI)
  • The PAN is the sole identification number for all transactions in securities markets
  • Although there are more than 25 stock exchanges in the country, the Bombay Stock Exchange and the National Stock Exchange account for a large majority of securities exchanges
GOVERNMENTAL REGULATORY BODIESSecurities and Exchange Board of India (SEBI)
  • Established 1992, headquarters Mumbai
  • Functions under the Department of Economic Affairs, Ministry of Finance
  • SEBI is the regulator for financial markets in India
  • SEBI has regional offices in New Delhi, Kolkata, Chennai and Ahmadabad
  • The main responsibilities of SEBI include protection of interests of investor, and the development and regulation of securities markets
SEBI has three main functions
  • Legislative functions: it drafts regulations and policies for financial markets
  • Executive functions: conducts investigations and enforces action
  • Judicial functions: passes rulings and orders and arbitrates disputes
Forward Markets Commission (FMC)
  • Established 1953, headquarters Mumbai
  • Functions under the Ministry of Consumer Affairs, Food and Public Distribution
  • The FMC is the chief regulator of forwards and futures markets in India
The main functions of the FMC include
  • Advice the Union Government on matters relating to forward markets
  • To monitor and regulate forward markets
  • Collect and publish information relating to forward markets
  • The FMC currently allows futures trading in specific spices, edible oils, pulses, energy products and metals
  • These forwards and futures exchanges in commodities are performed at specialised commodity exchanges in the country
  • Established 1875, location Mumbai
  • The BSE is the oldest stock exchange in Asia
  • The BSE is the largest stock exchange in India (in terms of market capitalization)
  • In terms of the number of listed companies, the BSE is the largest stock exchange in the world (with over 4500 listed companies)
  • The key index of the BSE is the SENSEX (BSE Sensitive Index). It is a composite measure of the performance of 30 key listed companies
National Stock Exchange (NSE)
  • Established 1992, location Mumbai
  • The NSE is the second largest stock exchange in India (after BSE)
  • In terms of number of trades in equity, it is the largest stock exchange in India and the third largest in the world
  • The NSE is also the second fastest growing stock exchange in the world
  • The NSE is owned by a set of financial institutions, banks and insurance companies. There are at least two foreign investors in NSE: NYSE Euronext and Goldman Sachs
  • The NSE’s key index is the Nifty

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