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Overview of India's National Stock Exchange

The National Stock Exchange of India (NSE) is the largest stock exchange in India in terms of daily trading volume and the number of trades. It has over $1.46 trillion in total market capitalization and thousands of listed securities. The NSE was incorporated in 1992 and uses advanced satellite technology to connect over 320 cities across India, allowing it to process up to 6 million trades per day on its electronic trading platform. It operates equity, futures, options, and debt markets and has stringent listing requirements for the over 1000 companies traded on the exchange.

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27 views5 pages

Overview of India's National Stock Exchange

The National Stock Exchange of India (NSE) is the largest stock exchange in India in terms of daily trading volume and the number of trades. It has over $1.46 trillion in total market capitalization and thousands of listed securities. The NSE was incorporated in 1992 and uses advanced satellite technology to connect over 320 cities across India, allowing it to process up to 6 million trades per day on its electronic trading platform. It operates equity, futures, options, and debt markets and has stringent listing requirements for the over 1000 companies traded on the exchange.

Uploaded by

lalitbadoga
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

National Stock Exchange (NSE) of India

The National Stock Exchange of India (NSE) is the largest financial market in India
in terms of daily turnover and number of trades for equities and derivative trading. 
There are thousands of securities listed on the NSE, with a market capitalization of
over $1.46 trillion dollars.  The NSE is owned jointly by a number of banking
institutions and insurance companies with the mission of providing a fast, electronic
routing of orders throughout India.   Lastly, the NSE was the first financial system in
India providing electronic limit orders for securities.

 
History of the National Stock Exchange of India

The NSE was incorporated in 1992 as a tax-paying entity.  However, the origins of the
NSE can be traced back to the Securities Contracts Regulation Act of 1956.  In this act,
the Indian government sought to create a financial market where investors can invest
safely and securely in order to build wealth. 
[Link]
Markets Trading on the NSE

The NSE is responsible for a number of trading markets.  Below is a list of


these markets
Equity Markets
Futures and Options Markets
Wholesale Debt Market
Mutual Funds
Initial Public Offerings

NSE Technology

The NSE is using a satellite communication technology to support trading for


over 320 cities throughout India.  The National Stock Exchange has the
capacity to process over 6 million trades per day.  The NSE all supports one of
the largest VSAT (Very Small Aperture satellite Terminal) networks in the
world.  There are over 3.000 VSATs on the NSE network and over 15 large
super computers.
In the fast growing Indian financial market, there are 23 stock exchanges trading
securities. The National Stock Exchange of India (NSE) situated in Mumbai - is the
largest and most advanced exchange with 1016 companies listed and 726 trading
members.

The NSE is owned by the group of leading financial institutions such as Indian Bank
or Life Insurance Corporation of India. However, in the totally de-mutualised
Exchange, the ownership as well as the management does not have a right to trade on
the Exchange. Only qualified traders can be involved in the securities trading.

The NSE is one of the few exchanges in the world trading all types of securities on a
single platform, which is divided into three segments: Wholesale Debt Market
(WDM), Capital Market (CM), and Futures & Options (F&O) Market. Each segment
has experienced a significant growth throughout a few years of their launch. While
the WDM segment has accumulated the annual growth of over 36% since its opening
in 1994, the CM segment has increased by even 61% during the same period.
The National Stock Exchange of India has stringent requirements and
criteria for the companies listed on the Exchange. Minimum capital
requirements, project appraisal, and company's track record are just a few
of the criteria. In addition, listed companies pay variable listing fees based
on their corporate capital size.

The National Stock Exchange of India Ltd. provides its clients with a
single, fully electronic trading platform that is operated through a VSAT
network. Unlike most world exchanges, the NSE uses the satellite
communication system that connects traders from 345 Indian cities. The
advanced technologies enable up to 6 million trades to be operated daily
on the NSE trading platform.

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