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Economy 20: SEBI and Stock Market

SEBI (Securities and Exchange Board of India)
The regulator of the Indian securities market.
  • Established as a non-statutory body in 1988.
  • Gained statutory status in 1992.
  • Responsible for managing the business of shares and stocks in India.
  • Headquarters: Mumbai, Maharashtra.
  • Current Chairman: Tuhin Kanta Panday (11th Chairman).
BSE (Bombay Stock Exchange)
Oldest Stock Exchange of India and Asia.

Historical Context

Founded in 1875 as the 'Dalal Street Stock Exchange'. It received official government status as a stock exchange in 1957.

Trading Evolution

1875 - 1995: Paper-based trading.

1995 onwards: Fully Digital trading.

Sensex (Sensitivity Index)

The main index of BSE, first released in 1986. It tracks the performance of the top 30 companies.

Other Indices: BSE 100, BSE 200, BSE 500.

Key Figures & Subsidiaries

Chairman: Sundar Raman Ramamurthy.

Subsidiary: IINX (India International Exchange), established in 2017 in IFSC GIFT City, Gujarat. It was the first exchange to list an international company in its index.

NSE (National Stock Exchange)
India's first automated stock exchange.

Establishment

Established in 1992. Received stock exchange status from SEBI in 1993 and officially started trading in 1994.

NIFTY Index

The main index of NSE, representing the top 50 companies.

Other Indices: NIFTY 100, NIFTY 200, NIFTY 500.

Key Figures & Subsidiaries

Headquarters: Mumbai, Maharashtra.

Chairman: Aashish Kumar Chauhan.

Subsidiary: NSE IFSC, established in 2016 in GIFT City, Gujarat.

Venture Capital vs. Angel's Fund
Understanding private investment in small companies.

Venture Capital

  • • Wealthy private investors seeking profit.
  • Active Participation: Involved in capital, marketing, and promotion.
  • • May continue the business or exit after profit.

Angel's Fund

  • • Wealthy private investors seeking profit.
  • Inactive Participation: Only provide capital investment.
  • • Generally exit the business after gaining profit.
Practice Quiz

When was SEBI established as a non-statutory body?

1985
1988
1992
1995

Which of the following is the oldest stock exchange in Asia?

NSE
BSE
Tokyo Stock Exchange
Shanghai Stock Exchange

The 'Sensex' index of BSE represents how many top companies?

30
50
100
500

Which exchange was the first automated stock exchange in India?

BSE
IINX
NSE
MCX

In which type of funding do investors participate actively in marketing and promotion?

Angel's Fund
Venture Capital
Debt Financing
Consortium Finance