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National Stock Exchange of India

NSE building at BKC, Mumbai
NSE building at BKC, Mumbai

The National Stock Exchange (NSE) () is a stock exchange located at Mumbai, India. It is the 16th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading.[1] NSE has a market capitalization of around 985 billion and over 1,646 listings as of December 2011.[2] Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalisation.

NSE is mutually owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities.[3] There are at least 2 foreign investors NYSE Euronext and Goldman Sachs who have taken a stake in the NSE.[4] , the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India.[5] NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities.[6] It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.[7]

Contents


Origins

The National Stock Exchange of India was set up by Government of India on the recommendation of Pherwani Committee in 1991.Promoted by leading Financial institutions essentially led by IDBI at the behest of the Government of India, it was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000.

Markets

Currently, NSE has the following major segments of the capital market:

In August 2008 currency derivatives were introduced in India with the launch of Currency Futures in USD INR by NSE. Currently it has also launched currency futures in euros, pounds and yen. Interest Rate Futures were introduced for the first time in India by NSE on 31 August 2009, exactly one year after the launch of Currency Futures.

NSE became the first stock exchange to get approval for interest rate futures, As recommended by SEBI-RBI committee, on 31 August 2009, a futures contract based on 7% 10 Year Government of India (Notional) was launched with quarterly maturities.[8]

Hours

NSE's normal trading sessions. 9:15 AM TO 3:15(3:30)pm

Milestones

  • November 1992 Incorporation
  • April 1993 Recognition as a stock exchange
  • May 1993 Formulation of business plan
  • June 1994 Wholesale Debt Market segment goes live
  • November 1994 Capital Market (Equities) segment goes live
  • March 1995 Establishment of Investor Grievance Cell
  • April 1995 Establishment of NSCCL, the first Clearing Corporation
  • June 1995 Introduction of centralised insurance cover for all trading members
  • July 1995 Establishment of Investor Protection Fund
  • October 1995 Became largest stock exchange in the country
  • April 1996 Commencement of clearing and settlement by NSCCL
  • April 1996 Launch of S&P CNX Nifty
  • June 1996 Establishment of Settlement Guarantee Fund
  • November 1996 Setting up of National Securities Depository Limited, first depository in India, co-promoted by NSE
  • November 1996 Best IT Usage award by Computer Society of India
  • December 1996 Commencement of trading/settlement in dematerialised securities
  • December 1996 Dataquest award for Top IT User
  • December 1996 Launch of CNX Nifty Junior
  • February 1997 Regional clearing facility goes live
  • November 1997 Best IT Usage award by Computer Society of India
  • May 1998 Promotion of joint venture, India Index Services & Products Limited (IISL)
  • May 1998 Launch of NSE's Web-site: www.nse.co.in
  • July 1998 Launch of NSE's Certification Programme in Financial Market
  • August 1998 CYBER CORPORATE OF THE YEAR 1998 award yes.
  • February 1999 Launch of Automated Lending and Borrowing Mechanism
  • April 1999 CHIP Web Award by CHIP magazine
  • October 1999 Setting up of NSE.IT
  • January 2000 Launch of NSE Research Initiative
  • February 2000 Commencement of Internet Trading
  • June 2000 Commencement of Derivatives Trading (Index Futures)
  • September 2000 Launch of 'Zero Coupon Yield Curve'
  • November 2000 Launch of Broker Plaza by Dotex International, a joint venture between NSE.IT Ltd. and i-flex Solutions Ltd.
  • December 2000 Commencement of WAP trading
  • June 2001 Commencement of trading in Index Options
  • July 2001 Commencement of trading in Options on Individual Securities
  • November 2001 Commencement of trading in Futures on Individual Securities
  • December 2001 Launch of NSE VaR for Government Securities
  • January 2002 Launch of Exchange Traded Funds (ETFs)
  • May 2002 NSE wins the Wharton-Infosys Business Transformation Award in the Organization-wide Transformation category
  • October 2002 Launch of NSE Government Securities Index
  • January 2003 Commencement of trading in Retail Debt Market
  • June 2003 Launch of Interest Rate Futures
  • August 2003 Launch of Futures & options in CNXIT Index
  • June 2004 Launch of STP Interoperability
  • August 2004 Launch of NSE s electronic interface for listed companies
  • March 2005 India Innovation Award by EMPI Business School, New Delhi
  • June 2005 Launch of Futures & options in BANK Nifty Index
  • December 2006 'Derivative Exchange of the Year', by Asia Risk magazine
  • January 2007 Launch of NSE CNBC TV 18 media centre
  • March 2007 NSE, CRISIL announce launch of IndiaBondWatch.com
  • June 2007 NSE launches derivatives on Nifty Junior & CNX 100
  • October 2007 NSE launches derivatives on Nifty Midcap 50
  • January 2008 Introduction of Mini Nifty derivative contracts on 1 January 2008
  • March 2008 Introduction of long term option contracts on S&P CNX Nifty Index
  • April 2008 Launch of India VIX
  • April 2008 Launch of Securities Lending & Borrowing Scheme
  • August 2008 Launch of Currency Derivatives
  • August 2009 Launch of Interest Rate Futures
  • November 2009 Launch of Mutual Fund Service System
  • December 2009 Commencement of settlement of corporate bonds
  • February 2010 Launch of Currency Futures on additional currency pairs
  • October 2010 Launch of 15-minute special pre-open trading session, a mechanism under which investors can bid for stocks before the market opens.[9]

Indices

Graph of S&P CNX Nifty from January 1997 to March 2011
Graph of S&P CNX Nifty from January 1997 to March 2011
NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including:[10]

  • S&P CNX Nifty(Standard & Poor's CRISIL NSE Index)
  • CNX Nifty Junior
  • CNX 100 (= S&P CNX Nifty + CNX Nifty Junior)
  • S&P CNX 500 (= CNX 100 + 400 major players across 72 industries)
  • CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)

Exchange Traded Funds on NSE

NSE has a number of exchange traded funds. These are typically index funds and GOLD ETFs. Some of the popular ETF's available for trading on NSE are:

Equity ETFs on NSE:[11]

  • Nifty Goldman Sachs Nifty Exchange Traded Scheme (NIFTYBEES)
  • Junior Nifty Goldman Sachs Nifty Junior Exchange Traded Scheme (JUNIORBEES)
  • Bank Goldman Sachs Banking Index Exchange Traded Scheme (BANKBEES)
  • PSU Bank Goldman Sachs PSU Bank Exchange Traded Scheme (PSUBNKBEES)
  • Shariah Goldman Sachs S&P CNX Nifty Shariah Index Exchange Traded Scheme (SHARIABEES)
  • Infrastructure Goldman Sachs Infrastructure Exchange Traded Scheme (INFRABEES)
  • S&P CNX Nifty UTI Notional Depository Receipts Scheme (UTISUNDER)
  • KOTAK PSU Bank ETF (KOTAKPSUBK)
  • Reliance Banking ETF (RELBANK)
  • Quantum Index ETF (QNIFTY)
  • KOTAK NIFTY (KOTAK NIFTY)
  • MOSt Shares M50 ETF (M50)
  • MOSt Shares M100 ETF (M100)

Gold ETFs:[11]

  • AXIS MF AXIS GOLD ETF (AXISGOLD)
  • GOLDMAN SACHS GOLD EXCHANGE TRADED SCHEME (GOLDBEES)
  • UTI GOLD ETF (GOLDSHARE)
  • HDFC GOLD ETF (HDFCMFGETF)
  • ICICI PRUDENTIAL GOLD ETF (IPGETF)
  • KOTAK GOLD ETF (KOTAKGOLD)
  • QUANTUM GOLD FUND (QGOLDHALF)
  • RELIANCE GOLD ETF (RELGOLD)
  • RELIGARE GOLD ETF (RELIGAREGO)
  • SBI MF-SBI GOLD ETS-GO (SBIGETS)
  • IDBI GOLD ETF (IDBIGOLD) (Newly added)

World Indices ETFs:[11]

  • GS Hang Seng BeES (HNGSNGBEES)
  • MOSt Shares NASDAQ 100 (N100)

Debt ETFs:[11]

  • GS Liquid BeES (LIQUIDBEES)

Certifications

NSE also conducts online examination and awards certification, under its programmes of NSE's Certification in Financial Markets (NCFM)http://www.nse-india.com/. Currently, certifications are available in 32 modules, covering different sectors of financial and capital markets, both at beginner and advanced levels. the list of the various modules can be found at the following official site of NSE India. http://www.nseindia.com/education/content/module_ncfm.htm Branches of the NSE are located throughout India. NSE, in collaboration with reputed colleges and institutes in India, has been offering a short-term course called NSE Certified Capital Market Professional (NCCMP) since August 2009, in the campuses of the respective colleges/ institutes.[12]

See also

References

External links

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