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.
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SUMMARY
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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.com
but you need a password to access it.
Top
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
Top
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:
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Foreign
investment under a financial collaboration which is permitted up
to 51 per cent in all priority areas.
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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.
Top
Another
report on foreign investment in financial sector
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