Earlier there were so many problems like absence of liquidity, transparency, undue delay in settlement of transactions etc in trading mechanism. To overcome and for providing efficient services to investor, the country’s first electronic stock exchange which facilitates ringless, scripless trading was set up in 1992 with the name OTCEI. It was sponsored by UTI, ICICI, IDBI, SBI, IFCI, GIC etc subsidiaries and can bank financial services.
Features of OTCEI:-
· Introduced Screen Based trading for the first time in Indian Stock market
· Trading takes place through a network of computers of over the counter (OTC) dealers located at several places, linket to central OTC computers.
· All the activities of OTC trading process was fully computerized.
National Stock Exchange of
NSE was inaugurated in 1994 and seeks to
· Establish a nation wide trading facility for Equities & Debts
· Facilitates equal access to investors across the country
· Impacts fairness, efficiency and transparency to securities
· Shortens Settlement Cycle
· Meet International Securities Market Standard.
Established in 1875 and one of oldest organized exchange in the world with a long colourful history.
Features of BSE:-
· Switches from Open outcry system to Screen Bases system in 1995
· Jobbers play an important role in BSE. Jobbers is a broker who trades on his own account and offers a two way quote or bid ask offer. Bid price at which jobber is willing to buy and Ask Price – jobber is willing to sell.
· Investor have to transact through jobber/ broker