e   rit    ar et in ndia     14.3
     operating in India—7 at the national level and       one in 2002. The biggest in India, it accounts for
     rest 19 at the regional level (one of it, Coimbatore almost 75 per cent of total stocks traded in India
     Stock Exchange recently sought for withdrawal        and is the fifth largest in the world (on the basis of
     of recognition, the matter is sub-judice under       market capitalisation).
     SEBI). A brief account of the ‘national level stock       There are at present four indices connected
     exchanges’ is given below.                           with the BSE:
                                                               (i) Sensex: The sensitive index (i.e., Sensex) is
                                                                     a 30 stocks index of the BSE which was
     The National Stock Exchange of India Ltd. (NSE)                 enlarged to include 50 stocks in 2000 but
     was set up in 1992 and became operationalised in                soon was cut down to the original level.
     1994. The sponsors of the exchange are financial                This index represents the Indian stock
     institutions, including IDBI, LIC and GIC with                  market.
     IDBI as its promotor.
                                                              (ii) BSE-200: This is a 200 stock share index
          It has a 50 share index and a 500 share index              of the BSE (including the 30 stocks of
     known as S&P CNX-50 (Nifty Fifty) and S&P                       the Sensex) which has its Dollar version
     CNX-500, respectively.                                          too—the Dollex.
     otcei                                                   (iii) BSE-500: In mid-1999, the BSE came up
                                                                     with a 500-stock index representing major
     Though the Over the Counter Exchange of                         industries and many sub-sectors of the
     India Ltd (OTCEI) was set up in 1989, it could                  economy with information technology
     commence trading only in 1992. India’s first fully
                                                                     getting a significant weightage.
     computerised stock exchange was promoted by
     the UTI, ICICI, SBI Cap among others, in order          (iv) National Index: An index of 100 stocks
     to overcome problems such as lack of transparency               being quoted nationwide (Bombay,
     and delays in settlements prevalent in the older                Delhi, Kolkata, etc.) was developed to
     stock exchanges. Another important goal of the                  give broader/wider representation of the
     exchange was to allow stock market exposure to                  stock market since the Sensex consists of
     comparatively smaller companies (companies with                 only 30 stocks. The 30 stocks of the sensex
     paid-up capital from Rs. 30 lakh to Rs. 25 crore                are included in the National Index.
     are enlisted here). Trading in this exchange takes        This index is computed by the Statistics
     place via market-makers and commission is fixed.     Department of the BSE hence it is called the BSE
                                                          National Index (BSENI).
     The Interconnected Stock Exchange of India (ISE)
                                                          inDo next
     is basically a single floor of India’s 15 regional   A new stock exchange to promote liquidity to
     stock exchanges (RSEs), set up in 1998. The RSEs     the stocks of the small enterprises (SMEs) was
     were provided increased reach through this. It is a  launched in 2005 jointly and medium the BSE and
     web-based exchange.                                  the FISE (Federation of Indian Stock Exchanges,
                                                          representing 18 regional stock exchanges).
     bse                                                       It is better known as the BSE Indo Next. It was
     The Bombay Stock Exchange Ltd. (BSE), earlier a      also an effort to rejuvenate the RSEs which were
     regional stock exchange, converted into a national   facing falling volumes of trading on their floors.