Stock markets in India


Did you know?

The Mumbai (Bombay) Stock Exchange is the oldest in Asia (established in 1875). It is older than even the Tokyo Stock Exchange which was established in 1878.


Did you know?

Merrill Lynch, Oppenheimer,
J.P. Morgan, Morgan
Stanley, Grindlays,
Standard Chartered, HSBC,
American Express are among the foreign financial giants
operating in India.

 

Other useful Links

Opportunities for foreign investors

Sensex and other indices of Mumbai Stock Exchange

Securities & Exchange Board of India (SEBI)

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SUMMARY

  • India's oldest and first stock exchange: Mumbai (Bombay) Stock Exchange. Established in 1875. More than 6,000 stocks listed.

  • Total number of stock exchanges in India: 22

  • They are in: Ahmedabad, Bangalore, Calcutta, Chennai, Delhi etc.

  • There is also a National Stock Exchange (NSE) which is located in Mumbai.

  • There is also an Over The Counter Exchange of India (OTCEI) which allows listing of small and medium sized companies.

  • The regulatory agency which oversees the functioning of stock markets is the Securities and Exchange Board of India (SEBI), which is also located in Bombay. SEBI's website location is at http://www.sebi.gov.in but you need a password to access it.

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Mumbai (Bombay) Stock Exchange
Phiroze Jeejeebhoy Tower,
5th Floor, Dalal Street,
Bombay 400 023
Tel.: 91-22-265-5861, 2265-5581
Fax 91-22-265-8121

Click here to visit website


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Bangalore Stock Exchange
Stock Exchange Towers,
No 51 1st Cross,
J C Road,
Bangalore 560027.
Tel: (91-80) 2995233 / 5225

Click here to visit their website

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NATIONAL STOCK EXCHANGE
Mahindra Towers "A" Wing, 1st Floor,
Worli, Mumbai.
Tel : 022-4960525, 4932555.
Fax : 022-4935631

Click here to e-mail them

Click here to visit their website

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Opportunities for Foreign Investors in Indian Stockmarkets

Direct Investment

Foreign companies are now permitted to have a majority stake in their Indian affiliates except in a few restricted industries. In certain specific industries, foreigners can even have holding up to 100 per cent.

Investment through Stock Exchanges

Foreign Institutional Investors (FII) upon registration with the Securities and Exchange Board of India (SEBI) and the Reserve Bank of India (RBI) are allowed to operate in Indian stock exchanges subject to the guidelines issued for the purpose by SEBI.

Important requirements under the guidelines

1. Portfolio investment in primary or secondary markets will be subject to a ceiling of 30 per cent of issued share capital for the total holding of all registered FII's. In any one company an FII holding is subject to a ceiling of 10 percent of the total issued capital.

However, in applying the ceiling of 30 per cent, the following are excluded:

  • Foreign investment under a financial collaboration which is permitted up to 51 per cent in all priority areas.

  • Investment by FII's through offshore single/regional funds, GDR's and euro convertibles.

2. Disinvestment is allowed through a broker of a Stock Exchange.

3. A registered FII is required to buy or sell only for delivery. It is not allowed to offset a deal. It is also not allowed to sell short.

Investment in Euro Issues/Mutual Funds floated overseas

Foreign investors can invest in Euro issues of Indian companies and in India-specific funds floated abroad.

Broking Business

Foreign brokers upon registration with the SEBI are now allowed to route the business of registered FIIs. Guidelines for the purpose have been issued by SEBI.

Asset Management Companies / Merchant Banking

Foreign participation in Asset Management Companies and Merchant Banking Companies is permitted.

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Another report on foreign investment in financial sector
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