Baxis Patel (PhD)

The BSE is India's & Asia's oldest exchange which began 140 years ago under a banyan tree! It was India's primary exchange till the emergence of the NSE. Its index, the BSE SENSEX is one of the most widely tracked index in India & stands as a barometer for the economy. The Bombay Stock Exchange (BSE) is Asia's oldest stock exchange.  Based in Mumbai, India, BSE was established in 1875 as the Native Share & Stock Brokers' Association. Prior to that brokers and traders would gather under banyan trees to conduct transactions.  BSE functions as the first-level regulator in the securities market, providing monitoring and surveillance mechanisms that are able to detect irregularities and manipulations in stock prices.  The Exchange also provides counter-party risk management in all transactions that take place on its trading platform through its clearing and settlement services.  Shares of more than 5,000 companies are traded on BSE.  In

NSE, or the National Stock Exchange of India Limited, is India’s leading stock exchange. Established in 1992 and located in Mumbai, this exchange brought a paradigm shift to the  Indian financial market  right after it had suffered a setback due to an unprecedented scam that hit the Bombay Stock Exchange. This article, divided into 4 major sections highlighted below, will introduce you to the legacy of NSE. History of National Stock Exchange of India After the outbreak of 1992 security scam in which a BSE member, Harshad Mehta, was exposed manipulating the market, the government of India decided to promote establishing NSE based on recommendations made by High Powered Study Group on Establishment of New Stock Exchanges. The immediate aim was to provide equal access to investors from all across the nation and make participating in stock market easier. In November 1992, NSE was established as a tax-paying company with key investors including Life Insurance Corporation of India, S

Sources of Finance A Company may raise finance from many sources. Based on repayment period these sources are broadly classified into two categories: Long Term Sources Short Term Sources Equity Shares Commercial Banks Preference Shares Public Deposits Debentures Trade Credit Loans From Commercial Banks Customer Advance Loans From Financial Institutions Factoring Retained Earnings Installment Credit Inter-Corporate Finance Long Term Sources: Sources through which funds are raised for long term use in the business are termed as long sources. These are explained as below: Shares:   Funds raised from Issue of shares constitute the Ownership Fund of the company. Those who invest in shares are known as shareholders. A public company can issue two types of shares: 1.        Equity Shares