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
nse
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).
ise
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.