The National Stock Exchange of India (NSE) is one of the most important and most advanced stock markets in India, and, in terms of transactions, it is the third largest stock exchange in the World. The NSE India is situated in Mumbai, the financial capital of India. On December 31, 2005, the NSE VSAT terminals (2799 in total) spanned over 320 cities in India.
In 1994, the National Stock Exchange of India (NSE) functioned as a platform for securities exchange. The NSE India exchanges many different securities, such as equity, corporate debt, central and state government securities, commercial paper, and certificates of deposit. At present, 1000 members are enrolled on the NSE, and it is the owner of different financial and insurance institutions.
There are three market segments to the NSE: wholesale debt, capital market (automatic screen-based dealing system), and futures and options (derivatives).
The associates of the NSE are the National Securities Clearing Corporation, India Index Services and Products, the National Securities Depository, and NSE.IT (trading technology).
The NSE deals in online examination and awards certification. Branches of the NSE are located all over India. The NSE is India’s first national, anonymous, electronic limit order book (LOB) exchange which deals with securities.
The NSE introduced the first Indian clearing corporation, “National Securities Clearing Corporation Ltd.”, the first depository of India, National Securities Depository Limited.
History and Origin of The National Stock Exchange of India In November 1992, the NSE was integrated as a tax-paying company and at the command of the Government of India, top financial institutions were promoted it.
In April 1993, under the Securities Contracts (Regulation) Act, 1956, the NSE was known as a stock exchange. In June 1994, the NSE started operations in the Wholesale Debt Market (WDM) segment and in November 1994, the Capital Market (Equities) segment of the NSE started operations.
In 1996, the NSE was the first exchange in India that planned to trade derivatives specifically on an equity index. In February 2000, the NSE started an Internet trading system.
As of 4 March 2010, the National Stock Exchange had 1319 listed companies with a combined market capitalization of Rs. 5942607 crore.
The NSE established an index services firm called India Index Services & Products Limited (IISL), and has opened a number of stock indexes, including: S&P CNX Nifty NX 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 July 18, 2005 replacing CNX Midcap 200)
Other NSE Indices are – S&P CNX Defty CNX IT Bank Nifty Market Capitalization
At present, the NSE has the four most important segments of the capital market which are: Equity Futures and Options Retail Debt Market Wholesale Debt Market
Major Companies listed in The National Stock Exchange of India:
Asian Paints, Dabur, Glaxo, Escorts, Hindustan Lever, Bank of Baroda, Infosys Technologies, ONGC, Hero Honda, Jet Airways , Top Investors, Corporation Bank, ITC, MTNL, ICICI Bank, Grasim, Biocon, Maruti, HDFC Bank, Cipla, Federal Bank
National Stock Exchange of India Ltd.
Plot no. C/1, G Block
Mumbai – 400 051