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Notes On National Stock Exchange of India (NSE)

The National Stock Exchange of India (NSE) was established in 1992 and began operations in 1994, serving as the first fully computerized stock exchange in India, headquartered in Mumbai and regulated by SEBI. Its main purposes include providing a trading platform for securities, ensuring transparency, and protecting investor interests, with major segments including equity, derivatives, debt, and currency. The main index of NSE is NIFTY 50, which consists of the top 50 companies, and it operates under a fully electronic trading system to promote efficient capital markets.

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69 views4 pages

Notes On National Stock Exchange of India (NSE)

The National Stock Exchange of India (NSE) was established in 1992 and began operations in 1994, serving as the first fully computerized stock exchange in India, headquartered in Mumbai and regulated by SEBI. Its main purposes include providing a trading platform for securities, ensuring transparency, and protecting investor interests, with major segments including equity, derivatives, debt, and currency. The main index of NSE is NIFTY 50, which consists of the top 50 companies, and it operates under a fully electronic trading system to promote efficient capital markets.

Uploaded by

joswinsdsouza31
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© All Rights Reserved
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Notes on National Stock Exchange of India (NSE)

1. Establishment and Legal Status

Particular Details

Established 1992

Started operations 1994

Headquarters Mumbai

Regulated by Securities and Exchange Board of India

Type Stock Exchange

Nature Electronic stock exchange

NSE was the first fully computerized stock exchange in India.

2. Purpose of NSE

Main purposes:

 Provide platform for buying and selling securities

 Ensure transparency in trading

 Protect investor interests

 Promote efficient capital market

3. Functions of NSE

A. Trading Platform

Provides trading in:

 Equity shares

 Derivatives (Futures & Options)

 Bonds

 ETFs (Exchange Traded Funds)

B. Price Discovery
 Helps determine fair market price of securities

C. Provides Liquidity

 Allows investors to easily buy and sell securities

D. Ensures Transparency

 Electronic trading system reduces manipulation

4. Important Segments of NSE

Segment Meaning

Equity segment Trading in shares

Derivatives segment Trading in futures and options

Debt segment Trading in bonds

Currency segment Trading in currency derivatives

5. Major Index of NSE

NIFTY 50

 Main index of NSE

 Consists of top 50 companies

Full name: NIFTY = National Stock Exchange Fifty

6. Regulation of NSE

NSE is regulated by SEBI under:

 SEBI Act, 1992

 Securities Contracts (Regulation) Act, 1956

SEBI supervises:

 Trading practices

 Brokers
 Investor protection

7. Features of NSE

 Fully electronic trading

 Nationwide access

 Transparent system

 Faster transactions

 No physical trading floor

8. Important Terms for Exams

Term Meaning

Stock Exchange Market where securities are traded

Broker Person who buys/sells shares for clients

Listing Registration of company shares

Index Indicator of market performance

Derivatives Financial contracts (Futures, Options)

9. NSE vs BSE (Exam Important)

Basis NSE BSE

Established 1992 1875

Headquarters Mumbai Mumbai

Main Index NIFTY 50 SENSEX

Trading system Fully electronic Electronic

10. One-Line Revision (IBPS SO Law)

 NSE established: 1992

 Started: 1994
 Regulated by SEBI

 Electronic stock exchange

 Main index: NIFTY 50

 Headquarters: Mumbai

If you want, I can also prepare complete financial regulators notes (RBI, SEBI, NSE, BSE,
IRDAI, PFRDA) in one exam-revision chart for IBPS SO Law.

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