National Stock Exchange of India

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National Stock Exchange

National Stock Exchange Location of National Stock Exchange in India

Type Location

Stock Exchange Mumbai, India 19337N 725135E19.06028N 72.85972E 1992 National Stock Exchange of India Limited Ravi Narain (MD) Indian rupee ( ) 1,640 US$985 billion (Dec 2011)[1] S&P CNX Nifty

Coordinates

Founded Owner Key people Currency No. of listings MarketCap

Indexes

CNX Nifty Junior S&P CNX 500

Website

www.nseindia.com

NSE building at BKC, Mumbai The National Stock Exchange (NSE) (Hindi: Rashtriya hare Bzar) is a stock exchange located at Mumbai, Maharashtra, 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.[2] NSE has a market capitalization of around US$985 billion and over 1,640 listings as of December 2011.[3] 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.[4] There are at least 2 foreign investors NYSE Euronext and Goldman Sachs who have taken a stake in the NSE.[5] As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India.[6] NSE is the third largest Stock Exchange in the world in terms of the number of trades in equities.[7] It is the second fastest growing stock exchange in the world with a recorded growth of 16.6%.[8]

Contents
[hide]

1 Origins 2 Innovations 3 Markets 4 Hours 5 Milestones 6 Indices 7 Exchange Traded Funds on NSE 8 Certifications 9 See also 10 References

11 External links

[edit] Origins
The National Stock Exchange of India was promoted by leading Financial institutions at the behest of the Government of India, and 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.

[edit] Innovations
NSE pioneering efforts include:

Being the first national, anonymous, electronic limit order book (LOB) exchange to trade securities in India. Since the success of the NSE, existent market and new market structures have followed the "NSE" model. NSE is also the first exchange to propose an investor grievance cell and an investor protection fund a[9] Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity market (and later, derivatives market) trades in India. Co-promoting and setting up of National Securities Depository Limited, first depository in India[10] Setting up of S&P CNX Nifty. NSE pioneered commencement of Internet Trading in February 2000, which led to the wide popularization of the NSE in the broker community. Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives Being the first and the only exchange to trade GOLD ETFs (exchange traded funds) in India. NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBCTV18. NSE.IT Limited, setup in 1999 , is a 100% subsidiary of the National Stock Exchange of India. A Vertical Specialist Enterprise, NSE.IT offers end-to-end Information Technology (IT) products, solutions and services. NSE (National Stock Exchange) was the first exchange in the world to use satellite communication technology for trading, using a client server based system called National Exchange for Automated Trading (NEAT). For all trades entered into NEAT system, there is uniform response time of less than one second.

[edit] Markets

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

Equity Futures and options Retail debt market Wholesale debt market Currency futures Mutual fund Stocks lending and borrowing

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.[11]

[edit] Hours
NSE's normal trading sessions are conducted from 9:15 am India Time to 3:30 pm India Time on all days of the week except Saturdays, Sundays and Official Holidays declared by the Exchange (or by the Government of India) in advance.This timings is not valid for currency segment of National Stock Exchange.[12] The exchange, in association with BSE (Bombay Stock Exchange Ltd.), is thinking of revising its timings from 9.00 am India Time to 5.00 pm India Time.

[edit] 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 NSEs 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.[13]

[edit] Indices

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:[14]

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)

[edit] 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:[15]

Nifty Benchmark ETF (NIFTYBEES) Junior Nifty Benchmark ETF (JUNIORBEES) Bank Benchmark ETF (BANKBEES) PSU Bank Benchmark ETF (PSUBNKBEES) Shariah Benchmark ETF (SHARIABEES) 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) Infrastructure Benchmark ETF (INFRABEES) MOSt Shares M100 ETF (M100)

[edit] Certifications
NSE also conducts online examination and awards certification, under its programmes of NSE's Certification in Financial Markets (NCFM)[1]. Currently, notifications are available in 19 modules, covering different sectors of financial and capital markets. 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.[16]

[edit] References
1. 2. 3. ^ World-exchanges.org ^ "National Stock Exchange". Nasscom.in. 2006-07-12. http://www.nasscom.in/Nasscom/templates/NormalPage.aspx?id=28461. Retrieved 2010-08-26.[dead link] ^ "NSE likely to overtake BSE in marketcap". The Financial Express. http://www.financialexpress.com/news/NSE-likely-to-overtake-BSE-in-marketcap/499964/. Retrieved 2009-08-11. ^ "Personal website of R.Kannan". Geocities.com. 2004-08-22. Archived from the original on 2009-10-28. http://web.archive.org/web/20091028014118/http://geocities.com/kstability/student/illiquid/illiquid2.html. Retrieved 2010-08-26. ^ Indias SEBI raises exchange ownership cap to 15% ^ "NSE - About Us - Facts & Figures". Nse-india.com. http://www.nseindia.com/content/us/us_factsfigures.htm. Retrieved 2010-08-26. ^ "World Federation of Exchanges (2007)" [dead link] ^ "Now, NSE 2nd fastest growing stock exchange". Expressindia.com. 2007-08-29. http://www.expressindia.com/news/fullstory.php?newsid=91524. Retrieved 2010-08-26. ^ "What is NSE". Avinash MB. 2012-01-11. http://sgxniftylive.co.in/markets/what-is-nse/. Retrieved 201201-01.[dead link] ^ "NSDL". NSDL. 2010-12-11. http://www.nsdl.co.in/. Retrieved 2010-12-15. ^ "Interest rate futures: NSE, MCX-SX set to fight it out - Business News - News - MSN India". News.in.msn.com. http://news.in.msn.com/business/article.aspx?cp-documentid=3114180. Retrieved 201012-15.[dead link] ^ National Stock Exchange of India via Wikinvest ^ "BSE, NSE launch pre-open trade today". business.rediff.com. http://business.rediff.com/report/2010/oct/18/fifteen-min-call-auction-window-from-today.htm. Retrieved 18 Oct 2010. ^ "NSE - Major indices". Nse-india.com. 2005-07-18. http://www.nseindia.com/content/indices/ind_majorindices.htm. Retrieved 2010-08-26. ^ "List of ETF in India". http://www.a1investor.com/etf-list. Retrieved 2011-12-01. ^ http://www.nseindia.com/education/content/module_nccmp.htm

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