What Is National Stock Exchange or NSE

What Is National Stock Exchange or NSE

 

National stock exchange (NSE) or Rashtriya share bazar is India’s largest exchange, globally in cash market trades, in currency trading and index options, being an Indian stock exchange. it is located in the Mumbai part of Maharashtra in India. NSE provides a modern, fully automated screen-based trading system, with over two lakh trading terminals, through which investors in every part of India can trade.

What Is National Stock Exchange or NSE

What Is National Stock Exchange or NSE

National Stock Exchange or NSE was made in 1992 as a de mutualised electronic exchange. As on June 2013, NSE had 1673 VSAT terminals and 2720 leaselines, spread over more than 2000 cities across India. The exchange was incorporated in 1992 as a tax-paying company and was recognized as a stock exchange in 1993 under the Securities Contracts Act, 1956, Mr. P. V. Narasimha Rao used to be the Prime Minister of India and Dr. Manmohan Singh was serving as a Finance Minister.

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NSE commenced operations in the Wholesale Debt Market segment in June 1994. The Capital market segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000.

NSE’s flagship index, the CNX Nifty, is used extensively by investors in India and around the world to take exposure to the Indian equities market. NSE has a market capitalization of more than 1.4 trillion u.s. dollars making it one of the world’s top twenty stock exchanges in the terms of market capitalization. Though there are a countless of exchanges, national stock exchange and Bombay stock exchange are the two exchanges of India with the most significance, and between them are responsible for the vast majority of share transactions.  It offers trading, clearing and settlement services in equity, debt and equity derivatives.

The paper-based settlement was replaced by electronic depository based accounts and settlement of trades was always done on time. One of the most critical changes was that a robust risk management system was set in place, so that settlement guarantees could protect investors against broker defaults. NSE was started in India to introduce transparency in Indian trade , and it diversified shareholding comprising domestic and global investors.

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The domestic investors includes Life Insurance Corporation of India, GIC, State Bank of India and Infrastructure Development Finance Company (IDFC) Ltd, while the foreign investors include MS Strategic (Mauritius) Limited, Citigroup Strategic Holdings Mauritius Limited, Tiger Global Five Holdings and Norwest Venture Partners X FII-Mauritius. national stock exchange is thus unique in itself.