Introduction of Share Market:-Introduction of Share Market:-

The oldest exchange in Asia and the first exchange in the country to be The oldest exchange in Asia and the first exchange in the country to be granted permanent recognition under the Securities Contract Regulation granted permanent recognition under the Securities Contract Regulation Act, 1956, Bombay Stock Exchange Limited (BSE) has had an interesting Act, 1956, Bombay Stock Exchange Limited (BSE) has had an interesting rise to prominence over the past 130 years.rise to prominence over the past 130 years.

The base value of the sensex is 100 on April 1, 1979, and the base year of The base value of the sensex is 100 on April 1, 1979, and the base year of BSE-SENSEX is 1978-79.BSE-SENSEX is 1978-79.

·Where Indian Stock Market IS ·Where Indian Stock Market IS FirstFirst

First in India to introduce Equity Derivatives First in India to introduce Equity Derivatives First in India to launch a Free Float Index First in India to launch a Free Float Index First in India to launch US$ version of BSE Sensex First in India to launch US$ version of BSE Sensex First in India to launch Exchange Enabled Internet Trading Platform First in India to launch Exchange Enabled Internet Trading Platform First in India to obtain ISO certification for Surveillance, Clearing & First in India to obtain ISO certification for Surveillance, Clearing &

Settlement .Settlement .

'BSE On-Line Trading System’ (BOLT) has been awarded the 'BSE On-Line Trading System’ (BOLT) has been awarded the globally, recognized by the Information Security Management System globally, recognized by the Information Security Management System standardstandard BS7799-2:2002.  BS7799-2:2002.

Moved from Open Outcry to Electronic Trading within just 50 days Moved from Open Outcry to Electronic Trading within just 50 days

SEBI SEBI {{ Securities and Exchange Securities and Exchange Board of India}Board of India}

Securities and Exhange Board of IndiaSecurities and Exhange Board of India ( (SEBISEBI) is a ) is a autonomous body created by the autonomous body created by the Government of IndiaGovernment of India in in 1988 and given statutory form in 1988 and given statutory form in 19921992 with the with the SEBI Act 1992SEBI Act 1992. .

SEBI is the regulator of Securities markets in India. The SEBI is the regulator of Securities markets in India. The new chairman of SEBI, Mr.C.B.Bhave took charge on new chairman of SEBI, Mr.C.B.Bhave took charge on February 16 2008.February 16 2008.

Sensex milestonesSensex milestones

1000, July 25, 19901000, July 25, 1990 2000, January 15, 19922000, January 15, 1992 3000, February 29, 19923000, February 29, 1992 4000, March 30, 19924000, March 30, 1992 5000, October 11, 19995000, October 11, 19996000, February 11, 20006000, February 11, 2000 7000, June 21, 20057000, June 21, 2005

8000, September 8, 20058000, September 8, 2005 9000, December 09, 20059000, December 09, 2005 10,000, February 7, 200610,000, February 7, 2006 11,000, March 27, 200611,000, March 27, 2006 12,000, April 20, 200612,000, April 20, 2006 13,000, October 30, 200613,000, October 30, 2006 14,000, December 5, 200614,000, December 5, 2006

13,000, October 30, 200613,000, October 30, 2006 14,000, December 5, 200614,000, December 5, 2006 15,000, July 6, 200715,000, July 6, 2007 16,000, September 19, 200716,000, September 19, 2007 17,000, September 26, 200717,000, September 26, 2007 18,000, October 9, 200718,000, October 9, 2007 19,000, October 15, 200719,000, October 15, 2007 20,000, October 29, 200720,000, October 29, 2007 21,000, January 8, 200821,000, January 8, 2008

The 10 largest falls of the The 10 largest falls of the Sensex:Sensex:--

1. Jan 21, 2008 - 1,408.35 points1. Jan 21, 2008 - 1,408.35 points 2. Mar 17, 2008 - 951.03 points2. Mar 17, 2008 - 951.03 points 3. Mar 3, 2008 - 900.84 points3. Mar 3, 2008 - 900.84 points 4. Jan 22, 2008 - 875.41 points4. Jan 22, 2008 - 875.41 points 5. Feb 11, 2008 - 833.98 points5. Feb 11, 2008 - 833.98 points 6. May 18, 2006 - 826.38 points6. May 18, 2006 - 826.38 points 7. Mar 13, 2008 - 770.63 points7. Mar 13, 2008 - 770.63 points 8. Dec 17, 2007 - 769.48 points8. Dec 17, 2007 - 769.48 points 9. Oct 17, 2007 - 717.43 points9. Oct 17, 2007 - 717.43 points 10. Jan 18, 2007 - 687.82 points10. Jan 18, 2007 - 687.82 points

Why Share Market Is So Volatile?Why Share Market Is So Volatile?

Disinvestment by FII’s.Disinvestment by FII’s. Globalization of Indian Market.Globalization of Indian Market. Hike in the interest rate by the U.S.Federal.Hike in the interest rate by the U.S.Federal. Hike in International Oil Prices.Hike in International Oil Prices. Circular issued by CBDTCircular issued by CBDT

{Central Board of Direct Taxes}{Central Board of Direct Taxes}

……some more reasonssome more reasons

Acceptance of globalisation,internationalisation and integration of the Indian market with the world markets.

Introduction of flexible exchange rate regime. Intro of new, innovative ,hybrid financial

instruments. Human element. Technological changes.

Reasons behind VolatilityReasons behind Volatility

What are the reasons behind sharemarket crisis?

30%

35%

32%

3%

FII's

Foreign Share Market

Inflation

other

After which event do you think,that the investers are not interested in investing money at share market?

60%

40%Reliance Pow er

Three Continuous Dips

REMEDY:

Single authority Demutualization. Prescribing capital adequacy norms. Stricter registeration of brokers Margin requirements .

:CONCLUSION ::CONCLUSION : Investors are afraid after the continuous crisis in share Investors are afraid after the continuous crisis in share

market in march-08.market in march-08. Investors pulled out money from share market for Investors pulled out money from share market for

investing in RPL IPO.investing in RPL IPO. Biggest cause for share market crisis is Reliance power Biggest cause for share market crisis is Reliance power

IPO in 08.IPO in 08. This is the right time to invest in share market for good This is the right time to invest in share market for good

profit in long run.profit in long run. Now investor’s money is blocked in Reliance power Now investor’s money is blocked in Reliance power

shares.shares. Long term investment wiil give maximum output for small Long term investment wiil give maximum output for small

investors.investors.