About stock exchange

The stock exchanges are the exclusive centers for trading of securities. The regulatory framework favors them heavily by almost banning trading of securities outside exchanges. Till recently, they enjoyed territorial monopoly. Listing of companies on the local exchange is mandatory to provide an opportunity to investors to invest in the securities of local companies. The companies wishing to list their securities must get listed on the regional (an exchange is considered regional for the state/Union Territory where it is located) stock exchange nearest to their registered office. If they so wish, they can seek listing on other exchanges also. In a vast country like India, investors long for convenience of trading from a nearby place and take pride also in having stock exchanges in their vicinity. Monopoly of the exchanges within their allocated area, regional aspirations of the people and mandatory .