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Practical study is very essential for any professional

curriculum otherwise it will Merely be a leap is darkness.
Apart from four walled study it is very necessary to deal
With the day to day working of origination. To fulfill the
above objective every Individual who is doing management
studies has to undergo this phase of practical study.

Before he/she can consider himself/ herself fully qualified

potential manager. During the course of my training. I
learned that undertaking is one thing and action is another.

I got opportunity of undergoing training at Uttar Pradesh

stock exchange. Kanpur from 24 June to 5 august. Duration
of my training is 6 weeks.

This practical training of 6 weeks was very helpful to me.

As I deal with various Financial activities. This study also
help me to judge the difference between classroom study of
management and the way the organization are managed


1. Introduction
2. Stock exchange in India – background
3. Importance of stock exchange
4. Function of stock exchange
5. Working of U.P.S.E
6. Departmental analysis
 Membership
 Clearing houses
 Listing
 Surveillance
 Grievance, compliance & arbitration
 Legal
 Audit & inspection
 R & D investor service cell & library
 Accounts & finance
 U.P.S.E securities ltd
7. Margin department
8. conclusion
9. Bibliography
In common parlance, stock exchange means, a place
where stocks are traded The word stock means Bond/
equity shares / preference shares / debentures etc and
Exchange means trading / transaction. Stock exchange
provides liquidity for the stock And securities. It is
market that provides a platform to owners of securities/
stock to sell their holding at reasonable price and also
provides an opportunity to the prospective buyers to
purchase the same.
The capital market can be bifurcated into two categories:
• PRIMARY MARKET: new issues of equity/ debt/
mutual fund, issued directly to Investors either in the
form of initial public offer (IPO) or right to shares or
bonus shares.
• SECONDARY MARKET: The market where the
securities that’s have already been in primary market
traded. These secondary markets are called STOCK
MARKET. Thus stock markets are secondary market,
which enable the owners of shares / securities to sell
their holdings & provide an opportunity for
prospective buyers to purchase the same.
The Indian stock market is now being considered at par
with the international stockMarket. he constitution of SEBI
to regulate the stock market was the first step in the
Direction. The introduction of demat trading & very
recently, the futures trading in Index at BSE & NSE shows
that we are slowly moving to international practice and

The leading stock exchanges in India are:-

1. National stock exchange
2. Bombay stock exchange
3. Kanpur stock exchange
4. Over the counter of India.
5. Bangalore stock exchange


The stock exchange is more than 100 years old for the
economy of India. The Bombay stock exchange was
formed in 1875, while the stock exchange of Calcutta and
Madras were formed in 1908 and the Delhi stock exchange
was formed in year in which we got independence from
British rule i.e. in the year 1947. At present there are 24
stock exchange only two stocks financial market in India.
At the same time the introduction of securities or say
paperless trading system in 1996 and the futures trading in
index exchange viz., national stock exchange and the
OTCEI have been established by all India financial
institution and all others stock exchange are operating as
 Meaning of stock exchange
‘According to securities contract (regulation act) 1956

 Self regulation by stock exchange and supervision by

The objective of a stable market is to be achieved by two
agencies at two Levels. First at the exchange levels, the
board of directors, and the national level The securities
and exchange board of India.
The board of directors of the stock exchange regulates
the activities of the stockbrokers. Stock exchanges are
designed to be self- regulatory. At the national level is
the SEBI exercising a supervisory role over the
functioning of the capital market and the stock exchange.
Purpose and aims of SEBI
• Regulating the activities of the stock exchange and
other securities market.
• Registering and regulating the working among others
of stock brokers and share transfer agents.
• Banning insider trading in securities.
• Restricting the transaction pertaining to of shares and
takeover of companies.

SEBI‘s role is to set down a set of prudential and

guideline, which would be aimed at investor
protection and would be rigorously enforced while
allowing for considerable autonomy and operational

The securities exchange board of India (SEBI) uses

four tier system to keep control over the working of
stock exchange and their members for the growth
And development of primary market in India and at
the same time to inculcate
Confidence among the investors both domestic as well
as foreign ones.
• Imposition of requirement of Base Minimum Capital
on the members of stock Exchange.

The importance of stock exchange has gained
momentum especially since the last decades. They
provide a readymade marketability and liquidity to the
securities.With the spirit, such market also helps in
channel sing the funds to the most profitable and
growth venture by their price mechanism. it can
rightly be said to ascertain the health of any economy,
analyzing the currents trends at stock exchange would
be the lucrative indicator.
Stock exchange facilitates the industrial growth. It has
changed the traditional perspective of public form
investment in real estate, to investment in the
securities of the companies. It facilitates the corporate
in raising funds to be diverted in various multiple
channels, thus ensuring rapid industrial growth.
Such markets are vital to the externa financing of a
firm and as a whole to large diversified investors and
economy at large.

• Importance to the economy

Stock exchange has been described as the heartbeat of
the economy. In real terms, it has been regarded as a
mirror of economic situation of the country. The
importance of such markets can be assessed by means
of following noteworthy benefits it owes to the
economy of any country across the globe.

 It accelerates the economic development of the country.

 Aids in expansion and modernization of capital
business enterprise.
 Rapid development of securities market.
 Influx of foreign capital base, through NRI, s , FII,s ,
OCB,s participation into the country. (However now
OCB, s are no more eligible to participate in the capital
market in India.
 Promotes industrial development.

• Importance to the corporate houses / sectors

It has resulted in great value to the business enterprise.
As such the listed companies enjoy the following
 Higher credit rating/ goodwill and creditworthiness in
national and international markets, since the listed
securities are trade profitability and command higher
value in the capital markets.
 Diversified market operation as a securities are
regularly quoted and traded in the market across the
country, within the ease to the large investors by means
of making the most fair deal through interest based
online trading of securities in such markets.
 It facilitates minimized fluctuation and avoided the
excessive bullish and bearish tendencies as the result
protecting the situation of speculation; insider trading
also prevents the securities prices rampant fluctuation
by means of marinating a price band limits.

• Importance of the investors:

The real benefit of such market is reaped by the
investors whether large or small:

 Liquidity of investments: The investors are free to buy

and sell securities in these markets during the trading
days. Thus , commanding liquidity of investments.
 Safe and fair dealing: in such markets is proposed only
in presence of the statuary/ rules, regulation , bye laws
of the respective stock exchange, and also in
conformity with the SEBI Rules, Regulation ,circulars,
as prescribed from time to time.
 Securities to investors: By means of SEBI guidelines of
investors protection is a ready for the stock exchange
so as to ensure the securities to the diversified investors
(both domestic and foreign).
 Investor education and awareness: stock exchange
maintain a separate cell for the purpose of expanding
the interest of investors with respect to the latest trends
of secondary markets profitability trades scripts ,
measures to protect the interest ,etc.

With reference to the stock market players, it can be stated

that in India, the following
Types of players are commonly acting namely:-

• Traders
• Investors
• Small investors


Following are the function of a stocks exchange:-
1 The secondary market allows investors to sell to others
investors the securities they buy In the primary market.
This provides the liquidity that allows investors to
purchase Securities without having to hold them
indefinitely or until the maturity
2 It aids the listed companies to price the securities they
are going to sell in primary Market.
3 The price of a firm,s securities in the secondary markets
has a direct impact on the Wealth of the shareholders.
Although the market price is influenced by many variables,
The firms, ability to generate the shareholders returns
depends a lot on the market price Of the share, which
varies in response to firms profitability.
4 A continuous market: The basic function of the stock
market is te creation of a Continuous markets where
securities are bought and sold in volume with little
Variation in current market price as trade succeed one
another. The main indicatiors Of a continuous market are:

 frequency of sales.
 Narrow spread between bids and offer.
 Prompt execution of order.
 Minimum price change between the transaction as they
5 Aid to financing industries: listed companies find it easy
to sell further issues of their Shares in the primary markets
price of the share reflecting the past performance and
Prospect renders the task of raising funds through further
issues (right issues) easier In fact , by creating a continuous
market for the rights, stock exchange enable A company to
market further issues successfully.

6 Others function: besides , the aforesaid function , the

following are also note worthy to To be taken into view
 Acts as an open market for the appraisal of te securities
 Facilitates smooth inflow and outflow of funds.
 Provides healthy speculation.
 Furnishing detail account of ndex of the progress in the
market trading.
 It eases the task of valuation of securities.
 Enhance the degree of mobilization of saving potential
of a country .
 Prospers the distribution process of new security
issues .
 Maintaining higher quality standard of corporate sector.
 Directing free flow of capital into the profitable
avenues of business
 Maintaining rate of profits.
 Provides a base for subsequent trading of primary
 Investors, education and protection
 Acts as an economic barometer for growth and survival
of the economy of any nation .
 It aids in proper regulation of company management.

Recognition date :03/06/1982

Established By : Mr G.H. Singhania

Inaugurated By : Mr Ramaswami venketraman (the

President of India on 08/02 1989)

No. of listed companies : 743

No of delisted companies : 1(trevani glass ltd )

No. of members : 542(active member 97)

No of employees : 73

Monthly turnover(june , 04-05 ) Rs. 708.38 crores.

1 To regulate the business of the exchange of stocks and
shares, debentures stocks, Government securities, bonds
and equities of any description and with a view thereto To
established function of stock exchange in Kanpur and / or

2 To acquire the membership of ay others recognized

stock exchange in India and and Abroad including
membership of OTCEI to broad base the operation of
the stock exchange for the benefit of the general public
and investors at large through its member brokers
provided no trading will be made by the exchange on its
owns behalf.
3 To promote one or more subsidiary companies whether
party or wholly owned , with the object to promote the
trade in share and stock, debentures, bonds and other
securities of any description issued by companies ,
statutory corporation , state government Financial
institution and the like and all others kind of securities
directly or through Its members and to acquire the
membership of one or more recognized stock Exchange in
India or abroad.
To purchase or sell securities on a stock exchange the
Procedure has to be followed:
# A non- member is not allowed to transact business at
the stock exchange, it can only be done through a member
of the stock exchange.
# After the client selects a broker, he has to give an order
to purchase/ sell his particular security .

The order may be placed in any of below mentioned forms;

1. Fixed price order: The client specifies the price at

which the broker is to execute the order. ex:- “buy
100 reliance at 240”.
2. Limit order: client specifies the upper and lower limit
of the price. Ex. Buy 100 reliance under 240 or sell
100 reliance at 240 or more
3. At best or market price: order must be executed at the
best possible price prevailing in the market . Ex: Buy
100 Reliance at best.
4. Immediate or cancel order: The instruction of the
client are required to be executed immediately. Such
an instruction is given when the price of securities
fluctuate violently.
5. Open order: client does not specify any time limit
within which the order must be executed.
6. Stop loss order: Such an order is placed to safeguard
against the heavy fluctuation
In the price of securities.
7. Discretionary order: Where the broker is given liberty
to buy or sell a particular
Securities at his discretion.

# After receiving the order the broker will contact other

broker / member of the stock
# Contract note will be prepared after the days,
Business is over. The contract note
Mainly includes :-

1 Number and price of securities purchased or sold.

2 Names of the parties.
3 Total amount to be paid by / to the client.

# The contract note is signed by broker and is sent to the


# The last step of trading procedure is settlement. Its

Modes depends upon the nature of the contract.
 Ready delivery contract – such contract are settled on
the same day or within the
Time fixed by the stock
Exchange authorities.

 Forward delivery contract – forward delivery

Transaction are settled on
the day Fixed by the stock
exchange authorities. Such
Contract is made without
the intention of taking or
Giving delivery of the
securities . The object is to
Make profit by taking
Advantage of price
Movement in future.

A Internal departments of UPSE UNDER their

departments heads
1 Trade operation deparment.
2 Margin department.
3 Clearing houses department.
4 Listing department.
5 Surveillance department.
6 Membership , grievances, complains and arbitration
7 Legal department.
8 Research and development department.
9 Secret office
10 Account and finance(established) department.
11 Secretorial department

B U.P.S.E. securities ltd. (a wholly owned subsidiary of

The department mainly deals with members,s / membership
admission / transfer Conversion / resignation / surrender of
certificate of registration of SEBI . Admission to
Membership of exchange is governed by the eligibility
criteria as specified in article 19 Of the articles of the
exchange which states:-

An individual apply for membership of exchange:

1. Be not less than 21 years of age.

2. Have qualification of matriculation or equivalent
examination (SEBI requires minimum intermediates).
3. Be a citizen of India
4. Possess a minimum of two years experience:
a) In dealing in securities or
b) As portfolio manager or
c) As investment consultant.
d) Have minimum net worth / capital of rupees
10.00 lacs . as certified by C.A
5. Submit an undertaking to the effect that:-
a) He/ She is not associated with any defaulting
members of any exchange.
b) He / She has introduced any fake / forged / stolen
hares in the market .
c) No investigation / enquiry is pending against
him / her in any exchange .
d) Pay all exchange / SEBI dues and comply to all
rules / regulation of the
Exchange / SEBI in force from time to time.

Minimum net worth requirement for corporate seeking

admission to Membership of the exchange is Rs. 20.00 in
case of direct corporate , and Rs . 10.00 Laces in case of
conversion cases i.e. from individual to corporate.
Two designated directors to remain on the board of
company,Eligibility criteria for designated directors to be
the same as in case of individual.
For any change in status & constitution of member (in
terms of SEBI Cir. NO. 30 dated 9.07.3003) member is
required to seek prior approval of exchange as well as SEBI
. At the same time , for effecting any change , member
must ensure that al SEBI and exchange have been paid.
The governing board of UPSE association limited of 13
members classified as under;

• Six elected under the provision of the articles of

association of exchange
• 2 government nominees appointed by SEBI
• 4 public nominees (A list of 12 person is sent by
UPSE association limited out of which 4 are selected
and approved by SEBI).
• One member is the executive director who is
appointed by the UPSE association ltd board with
approval of SEBI.
• At every annual general meeting of the exchange 1/3
of the members elected on the governing board retire
by rotation; provided that where a person has been a
Member, elected for two consecutive terms on the
governing board, he shall not be eligible for re election
for a further period of two years.
As per existing article, there is provision for election
of a President of the exchange out of the non- elected
members on the governing board. He will hold the
office of president for the period of one year.
However. W.e.f 12 july 2002 SEBI has superseded the
governing board of the exchange and appointed
administrator and all the powers And function of the
governing board are with the administrator, under
section 11 of the securities contract (regulation) act
In addition to the committees of the board of directors.
If any , referred to in the above article, the board of
directors, every years as early as convenient after
every General meeting , appoint the following
committee namely-

 Arbitration committee
 Defaults committee
 Disciplinary committee

These committees are consist of 60% non members

and 40% members in a 8 members committees and the
president generally presides over each of meeting of
such committees.
Besides the above three committees the following
committees are also Constituted by the governing
board of exchange every year.

• Computer breakdown committee

• Ethics committee
• Screening committee
• Compulsory delisting committee
• Investors service committee
Besides handling the correspondence work with SEBI /
ministry / income tax the following marks are also
handled in this section ( secretarial)
• Compilation and forwarding the monthly development
report to SEBI.
• Co- ordination with other department of the exchange
for implementation of
Various SEBI circulars.

• Compilation and forwarding the pre- inspection report

• Compilation and and forwarding the compliance
report ( conducted
Every year)
All statutory requirement under companies act are also
required to be done by This section viz…

• Filling of annual return after every AGM .

• Filling of balance sheet .
• Filling of form no. 23 , 29 , 32 etc
• Preparation of board meetings notice, agenda,
• Preparation of notice calling AGM & EGM and

Similar work relating of UPSE securities ltd . (a wholly

subsidiaries of UPSE) are also Handled from section.
Pay in and pay out of money and securities for the
settlement of the transaction transacted on the on- line
trading system of the exchange as per norms provided by
the SEBI as well as exchange from time to time.

Presently rolling settlement T+2 is applicable in the



T Trading system 9:55 A.M To 3:30 P.M

T+2 Confirmation pay- in and pay out of 11:00A.M To

Securities and funds 1;30P.M
T+2 Auction for short deliveries 1:30P.M. to 2:30 P.M
T+3 Auction pay-in pay out close out of 11:00 A.M to
Shares is not received in the auction 1:30 P.M.

A brief note on auction and close out carried out at


If securities are not available in the online section on T+2

day with in the prescribed price limit ( i. e 25% of the
current market rate ) then transaction is closed out as per
the standardized procedure specified by the SEBI.
The close out price will be highest price recorded in that
script on the exchange in the settlement in which the
concerned contract was entered into up to the date of
auction / close out.
20% above the official closing price on the exchange on the
day on which auction offer are called for (and in the event
of there being no such closing price on that day .
Then the official closing price on the immediately
proceeding trading day on which there
Was an official closing price ).

Which ever is higher

As per SEBI letter no: SMD/ policy / CIR – 08/ 2002 date
16th april 2002 that in cases of close out to the extent of
short delivery if the shares can not be acquired in the
auction on come basis then the mark up price would be
10% instead of 20%.
As per SEBI circular no SMD/ PPOLICY/ CIR – 21/ 02
dated 04 / 9 / 2002
That in the case of close out for script which have been in
definitely suspended / delisted the reference price would
be 26 weeks average traded price while the close out mark
up Would be20%
Deactivation of trading terminal and
Imposition of penality

In case of any default by a member regarding timely pay in

of the fund trading terminal of the concerned member is
being deactivated and penalty is also being imposed upon
the concerned member as prescribed by the exchange from
time to time. On receipt of complete amount of pay in and
penalty imposed by th trading terminal by the concerned
member , is reprieved
Listing means the admission of the securities of a public limited
company for trading on Stock exchange. The principle objective
of listing are to provide liquidity and free negotiability to
securities; ensure proper supervision and control of dealing there
in and protect the interest of the shareholder and of general
investing public. While there in no statutory obligation that
every public limited company should get it securities listed on
recognized stock exchange. It becomes so under section 73 of
the companies act once a declaration is made in prospectus of
the intent to apply for listing .
All the companies who fulfill the listing requirement of the
exchange are granted permission of the exchange for the listing.
The company, which is not listed on stock exchange, should
adopt a request letter of application from within 10 days of the
filling of the prospectus with the registrar of companies
Along with certain documents i.e the memorandum and articles
of association, debentures trust deed. Prospectus underwriting
agreement , service and selling agency agreement, collaboration
and technical agreement, particular of dividend and cash
business, if any , paid during the last ten years , a short history
of companies with details of its activities, specimens of share
certificates, debentures certificates, transfer, split and
consolidation receipt. The application forms consist of
Details information under the various head such as the title of
the company, date and place of incorporation, address or
registered and the principal place of business, present
capitalization and past history of capital structure, terms and
condition of any option , dividend record , particulars of any
recognition , reconstruction , amalgamation , absorption etc, The
company desirous of listing has to execute with the stock
exchange a detailed agreement , in the prescribed form. The list
companies which needs further issues does applies on other
prescribed letter of application and supporting documents.

There are five step in the procedure, namely ;

1. Application company communicates to the stock

2. Preparation and printing of a formal application.
3. Investigation by a committee of the board of directors.
4. Approval by the board of directors.
5. A new company should have a post issues capital of Rs 3
Crores. An existing company opting for the additional list
should also have apost issues capital of 3 Crore.
6. The company intending to list at the stock exchange have
to pay two types of fees;
1 Initial listing fees
2 Annual listing fees
This the main source of revenue of the stock
1 Initial listing fees Rs 10,500
2 Annual listing fees
Co. with paid up share capital of Rs. 1 crores Rs 6000
Above Rs 1 crores and upto Rs 5 crores Rs 9000
Above Rs 5 crores and upto Rs 10 crores Rs14,000
Above Rs 10 Crores and upto Rs 20 crores Rs 28,000
Over and above 20 crores for every increase of Rs 1 lacs
Rs 600
Delisting of companies
With the repeal of controller of capital issues Act. Listing was
badly needed by many companies consequent to which every
company whether with or without proper financial standing
got enlisted . The result was that prices of share of these
companies dropped and were hardly traded . Thus , as a result
many companies got delisted from UPSE and they fall into
category of the defunct companies.
Grievances & complaints department was set up in exchange
in may 1985 under guideline issued by the ministry of finance
, department of economic affair , stock exchange division .
Department is attending to the claim/ complains by investors /
members on various issues against:-
(1) member of the exchange
(2) companies
Claims against member
Whenever a claim has lodged by an investor, against member
related to share transaction , the same has taken up by the
department . claim letter is forward to the concerned
Member, replies, rejoinders and documents are exchanged
between the parties and, on dates fixed for hearing, the
investors, s service committee, after through security of the
documents, makes all effort to get settled the claim amicably
and ultimately, pronounces its decision.

Complaints against companies

Investors / members complaints against companies are also
handled by the department. Complaint against the companies
may of varied nature e.g

(1) Non receipt of allotment advice / refund order

(2) Non receipt of dividend
(3) Non receipt of share certificates after transfer.
(4) Non- receipt of annual report.
Such complaints forward by department to the concerned

The arbitration department as per the byelaws of the exchange
handles cases between client And members.

In case of non payment outstanding dues of exchange and
failures to fulfill his monetary Liabilities and/ or Obligation
relating to share transaction in exchange, a member is declared
Defaulter. Works related to defaulters and the department. As
per byelaws of exchange, also looks after SGF.

Committee meetings
Besides above , the department is also responsible for
convening/ conducting meetings of Various committee viz
arbitration, default, disciplinary, screening and investor services.
The legal department of exchange give advice to various
department on legal matter Whenever they seek it from the
department. Whenever there is a proposed change in the
Byelaws of the exchange, legal deparment takes proper steps for
incorporation of such change into byelaws. The department
deals with various cases filled by the exchange against member,
broker, service providers etc or any case filled by these parties
and their client & sub brokers against the exchange.

• Cases filled against the members for bad deliveries.

• Cases filled against the company for non transferring the
• Cases filled as an appeal in the lower court/ high court/
consumer fourm.
• Cases filled by member and non- members against the
arbitration award and against Any order passed by exchange.
Maintaining records of audited balance sheet
(b/s) of Members
Every year, all active are required to submit their audited
balance sheet and net worth certificate. In the exchange. The
department is responsible for collection of the audited balance
sheet to be submitted by all active member and imposing
penalties in case of late submission of B/S beyond
The stipulated time.

Inspection of books of accounts of members1

As per SEBI guideline, exchange is required to conduct
inspection of 20% of active member In such financial year.
Accordingly, the department select the names of the members to
be inspected (finalized by the executive directors) on the bassis
of turnover, in the manner that a cross section of all member is
covered . few names are selected from the members against
whom Complaints department by investors . few others name
are taken from the members against whom surveillance action
has been initiated. The work of inspection of brokers is assigned
to independent chartered accountants. Inspection are conducted
by the C.A.s as there by seeking replies. Inspection files are
placed before the disciplinary committee for consideration and
further action.
SEBI registration fees – to be paid by the members
As per the SEBI stock brokers regulation, 1992. every broker
registered with SEBI, is required to pay SEBI fees based on his
turnover trough the exchange. The deparment also handles this
Member are advised to submit a CA certified annexure ,A,
showing their turnover different heads i.e jobbing off market
trades etc in the prescribed format in the exchange within the
prescribed time limits.
A certification i.e annexure ,c, based on annuxure A submitted
by member and corresponding exchange records is to be sent by
exchange to SEBI for the purpose of calculation of fees payble
to SEBI.
SEBI registration fees / SEBI turnover fees /
SEBI fees
Schedule III of the SEBI ( stock broker and sub broker)
regulation 1992 specifies the fees to be paid by the stock
brokers. Every member is required to be paid registration fees in
manner set out below;
(a) Where the annual turnover does not exceed Rs 1.00
Crore during any financial year .
(b) Where the annual turnover does not exceed Rs 1.00
During any financial year a sum of 5000 plus 100 of
1% of the turn over in excess of Rs 1.00 crore for
each financial year
(c) After the expiry of five financial year from the date
of initial registration to pay a sum of Rs 5000/- for every block
of five financial year after the date of grant of initial
registration .

Every year detail of varius components of the total turnover are

to be furnished each & every active member in the exchange in
the prescribed time limit in annuxre ,A, auditors,s certificates
Turnover shall be computed as aggregrate of sales and purchase
done by the member in his own account and in the account of
his clients
In case of jobbing transaction which have been squared off
during the same day and such transaction have not been taken by
the boker on the behalf of client , fee at a concessional rate
Of .005% is payble on sale transactions i.e Rs 5000/- on every
Rs 1 crore no fees payble on purchase transaction comes to Rs
250/- per Rs 1.00 crore.
In case the member fails to submit the transaction detail in
annexure ,A, then fees at a flat rate of .01% on the total turnover
is payble by the member i.e Rs 1000/- on every Rs 1 crore of
The investor service cell as the name suggest basically
deals with the investors and gives assistance to them as
required by them. Function of investor service cell can be
divided in three parts.

• Providing services to investors.

• Library
• Provision of stationary

Providing services to investor

This department resolve quires of the investors and assist
them in technical matter relating to securities. As assistance
to the investor the department organize investor awerness
program at various places in U.P & Uttranchal . The
investor awerness program are are conducted to make
investor aware of their rights and duties What precaution
they should take before investing. Queries rose by investor
are solved
SEBI has continued UPSE to conduct INVESTA in 170
places in U.P & Uttranchal.
Records to be maintained for Investa
Schedule for monthly program to be approved by the
• Attendance register for INVESTA
• Monthly statement of program conducted has to be
sent to SEBI and it is reported to the administrator.

Others services
• UPSE has set up BSE & UPSE view for investor to
enable them to Know about the quote of various scrips
listed with them.
• Information regarding change of name of the
companies & merger is made available address of
company can be taken from here.
• IPO forms of various securities are made available.
• A television set has also been provided. On which
invetor can constantly watch
CNBC,INDIA, T.V and other business news channe.
• If the investor has any query regarding any member
then he can contact the
Investors service committee formed for this purpose
and give his application.
Library and stationary

Department maintains a library where various where

books , magazine & news papers like times of India
business standard , dainik jag ran, dalal street, capital
market BSE quotation regarding books closure ,
dividend etc. and annual report of companies listed
with exchange are kept. At present department has
subscribed 13
Newspaper & magazines. These books are made
available to the investors as and when required by
Department also deals with stationary sale. Share
transfer deeds, challans receipt books etc are sold here
at no profit no loss U.P & Uttaranchal investor can
purchase transfer deed from here.
This department maintains the accounts i.e records of
income & expenditure and financial records of the
exchange. The main function of this department is to
control monitor the income & the expenditures. The main
source of revenue of the exchange
 Listing fees
 Annual charges
 Transaction fees (subject to minimum Rs 10000/- per
 Interest on FDR
 Mainainance charge (as decided by management )

The main heads of expenditure of the exchange are:

 Administrative expenses like staff related expenses
 Legal and professional expenditure.
 Maintainace expenditure
 Depreciation
 Operational expenditure

• Electricity and maintenance

• Data processing
• Printing, stationary , postage & telephone.

The other function handled by this department is related

with office administration like staff salaries, their
incentives , promotion , leaves, carrying out
Their performance appraisal , inter department , etc in
totally the establishment department carries out the HR-

SEBI with a view to ensure the existence and survival of

regional stock exchange
Proposed a revival scheme wherein the regional stock
exchange were allowed to
Float subsidiaries membership of bg exchange like BSE ,
NSE, and CSE etc to allow its member to trade as sub-
brokers of the subsidiaries, like other stock exchange. The
uttar Pradesh stock exchange association ltd formed a
subsidiary in the name of the UPSE securities ltd.

Incorporation of UPSE securities

Originally 158 member of the UPSE association ltd
contributed toward the formation of the subsidiary & same
was transferred for obtaining the membership of BSE &
Calcutta stock exchange and the company accordingly
allotted 100% shares to UPSE association ltd
UPSE association ltd UPSE securities ltd was
incorporated on 19th april 2000 with the
authorized capital of Rs 1,80,43,700/-

The company is wholly own subsidiary is the member of

BSE and member whos had contributed the required sum of
Rs 1.02.000 towards the floating of the subsidiary and
allowed to trade through the compay as a sub- broker.
Although the purchase and sales are made in the company ,
to reflect the actual state of affairs , only
FDR, s interest and at brokerage of 0.000% + minimum 1
paise / shares is the income of the company.

Composition of board of directors

The board directors of UPSE securities comprises of 9
directors who are appointed to represent following people:
 Chief executive officer.
 UPSE member members non- sub brokers
 UPSE representative directors
 Public representative directors appointed by SEBI.

For availing the membership of UPSE securities a
minimum deposit of Rs 1,50,000
( which in Rs 1,00,000/- is towards the base minimum
capital and Rs 50,000/- towards advance margin) has to
be deposited.
At present there are 100 members with SEBI out of
which 62 members are actively trading.

Trading limit for members

Total credit limit of rs 18 lacs are given to a member out
of which Rs 9 lac is for purchase and Rs 9 lac is for sale.
In India the stock exchange are still far from
providing liquidity and continues market in
securities, therefore Indian stock exchange have
to make from tailoring out a suitable mechanism
to insure price continuity and easy liquidity to
script on the promise of which
Investor can enter the market in large numbers.
Investor are also not much aware of the concept
of the risk management ,
Which may help them a in their trading. There
should be various program to be conducted by
the stock exchange for the investor to know
about the concept of risk management

1 Working of stock exchange - By mahiraju.

2 Futures- Option
The investor - By Dr C.K. Narayan
& Parag Shah
3 Futures & Option - By N.D. Vohra
& B.R. Bagri.
4 Magazines
- Dalal street
- Business world
5 Newspapers
- Economic times
- Business line
- Business standard
6 Internet site



Dr. S. K. SRIVASTAV Sachin kumar awasthi
(Director) IBM MBA (FC) 3rd SEM
C.S.J.M University ROLL NO- 0133041