What are Stock Markets?

STOCK MARKETS : By the end of March 2001, 24 stock exchanges were functioning in
India. Out of these 20 exchanges are regional ones while four others National Stock
Exchange of India Limited (NSEIL), the Over The Counter Exchange of India Limited
(OTCEI), Inter-connected Stock Exchange of India Limited (ISE) and The Stock Exchange,
Mumbai (BSE), operate at the national level as they have mandate to have nationwide
trading network.
The ISE is promoted by 15 regional stock exchanges in the country and has been set up in
Mumbai. The ISE provides a member-broker at any of these stock exchanges an access
into the national market segment, which would be in addition to the local trading segment
available at present.
The NSEIL, the BSE, OTCEI, ISE and majority of regional stock exchanges have adopted
the screen based trading by system (SBTS) to provide automated and modern facilities for
trading in a transparent, fair and open manner with -access to investors across the
country. Internet trading has been permitted by SEBI in. a limited way through registered
stock brokers on behalf of clients for execution of trade on recognised stock exchanges
from 31 January 2000. As on 31 March, 2001, there were 9,954 listed companies on all
the stock exchanges in the country. Stock exchanges in India are recognised by the
Government under the Securities Contracts (Regulation) Act, 1956. Indian stock
exchanges are located at Mumbai, Calcutta, Ahmedabad, Kanpur, Chennai, New Delhi,
Hyderabad, Patna Guwahati and so on. The market capitalisation of all listed companies at
BSE was 5,71,553 crore as on 31 March, 2001. Total turnover of all the stock exchanges
during 2000-2001 was 28,80,804 crore.