diff between stock exchang & rec. stock exchang

What is an Exchange?

An exchange is an institution, organization, or association which hosts a market where stocks, bonds, options and futures, and commodities are traded. Buyers and sellers come together to trade during specific hours on business days. Exchanges impose rules and regulations on the firms and brokers that are involved with them. If a particular company is traded on an exchange, it is referred to as "listed".

Examples:

(a) National Stock Exchange (NSE) of India

(b) Bombay Stock Exchange (BSE) of India

(c) Regional Stock Exchanges (RSE) of India

What is a recognized stock Exchange?

A “recognized stock exchange” means, in relation to any provision of the Companies Act, a stock exchange in or outside India, which is notified by the Central Government in the Official Gazette as a recognized stock exchange for the purposes of the provisions of the Companies Act.

The following are the recognized stock exchanges in India notified by the Central Government in the official gazette:

1. Stock Exchange, Bombay.

2. Calcutta Stock Exchange Association, Calcutta.

3. Madras Stock Exchange Ltd., Madras.

4. The Ahmadabad Stock Exchange Association limited , Ahmadabad.

5. The Delhi Stock Exchange Association Ltd., New Delhi.

6. Madhya Pradesh Stock Exchange Ltd., Indore.

7. Bangalore Stock Exchange Ltd., Bangalore.

8. The Hyderabad Stock Exchange Ltd., Hyderabad.

9. Cochin Stock Exchange Ltd., Ernakulum.

10. The Uttar Pradesh Stock Exchange Association Ltd., Kanpur.

11. Magadha Stock Exchange Association Ltd., Patna.

12. Jaipur Stock Exchange Ltd., Jaipur.

13. Pune Stock Exchange Association Ltd., Pune.

14. The Ludhiana Stock Exchange Association Ltd., Ludhiana.

15. The Gauhati Stock Exchange Association Ltd., Gauhati.

16. Kanara Stock Exchange Ltd., Mangalore.

17. Bhubaneswar Stock Exchange Association Ltd., Bhubaneswar.

18. Saurashtra Kutch Stock Exchange Ltd., Rajkot.

19. Vadodara Stock Exchange Ltd., Vadodara..

20. OTC Exchange of India, Mumbai

21. Coimbatore Stock Exchange Limited, Coimbatore

22. National Stock Exchange of India Ltd., Mumbai.

23. Meerut Stock Exchange Ltd., Meerut.

24. Inter- Connected Stock Exchange of India Ltd.

25. Capital Stock Exchange Kerala Ltd

Companies that are not listed on a stock exchange are sold OTC (short for Over-The-Counter). Companies that have shares traded OTC are usually smaller and riskier because they do not meet the requirements to be listed on a stock exchange.