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National Stock Exchange (NSE) of India


NSE was incorporated in 1992 as a tax-paying company and was recognized as a stock exchange in 1993 under the Securities Contracts (Regulation) Act, 1956, when P. V. Narasimha Rao was the Prime Minister of India and Manmohan Singh was the Finance Minister.

The National Stock Exchange of India Ltd. (NSE) is the leading stock exchange in India and the second largest in the world by nos. of trades in equity shares from January to June 2018, according to World Federation of Exchanges (WFE) report.

NSE launched electronic screen-based trading in 1994, derivatives trading (in the form of index futures) and internet trading in 2000, which were each the first of its kind in India.

NSE has a fully-integrated business model comprising our exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings.

NSE also oversees compliance by trading and clearing members and listed companies with the rules and regulations of the exchange.

NSE was also instrumental in creating the National Securities Depository Limited (NSDL) which allows investors to securely hold and transfer their shares and bonds electronically. It also allows investors to hold and trade in as few as one share or bond. This not only made holding financial instruments convenient but more importantly, eliminated the need for paper certificates and greatly reduced the incidents of forged or fake certificates and fraudulent transactions that had plagued the Indian stock market.

The NSDL's security, combined with the transparency, lower transaction prices and efficiency that NSE offered, greatly increased the attractiveness of the Indian stock market to domestic and international investors.

History :

NSE is mainly set up in the early 1990s to bring in transparency in the markets. Instead of trading membership being confined to a group of brokers, NSE ensured that anyone who was qualified, experienced and met minimum financial requirements was allowed to trade.

NSE was set up by a group of leading Indian financial institutions at the behest of the government of India to bring transparency to the Indian capital market.

Based on the recommendations laid out by the Pherwani committee, NSE has been established with a diversified shareholding comprising domestic and global investors.

The key domestic investors include Life Insurance Corporation of India, State Bank of India, IFCI Limited, IDFC Limited and Stock Holding Corporation of India Limited.

And the key global investors are Gagil FDI Limited, GS Strategic Investments Limited, SAIF II SE Investments Mauritius Limited, Aranda Investments (Mauritius) Pte Limited and PI Opportunities Fund I

Year History
1992 NSE was incorporated in 1992 as a tax-paying company.
1993 the exchange was recognized as a stock exchange and was certified under Securities Contracts (Regulation) Act, 1956
1994 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
1995 Setup of wholly-owned subsidiary, NSE Clearing, which became the first clearing corporation to be established in India (according to the Oliver Wyman Report).
NSE Clearing commenced clearing and settlement operations in the following year.
1998 Established NSE Indices, subsidary, as a joint venture with CRISIL Limited to operate an indices business.
1999 Established NSEIT, a wholly-owned subsidiary and a global technology firm that provides end-to-end technology solutions, including application services, infrastructure services, analytics as a service and IT enabled services.
2000 Started its operations in the derivatives segment commenced in June 2000. Incorporated DotEx, a wholly-owned subsidiary, and consolidated the data and info-vending business under DotEx.
2006 Incorporated NSE Infotech Ltd., a wholly-owned subsidiary for IT research and development.
2013 NSE Indices became a wholly-owned subsidiary in 2013 following the acquisition of CRISIL's 49% stake.
2015 In 2015 and 2016, respectively, NSEIT launched its Testing Center of Excellence and Integrated Security Response Center
2016 Consolidated the education business under NSE Academy, a wholly-owned subsidiary.
Incorporated two new subsidiaries, NSE IFSC Limited and NSE IFSC Clearing Corporation Limited, in furtherance of NSE's long-term business strategy to establish an international exchange in GIFT City.
2018 National Stock Exchange has a total market capitalization of more than US$2.27 trillion, making it the world's 11th-largest stock exchange as of April 2018.

NSE offers trading and investment in the following segments :

Equity
  • Equities
  • Indices
  • Mutual Funds
  • Exchange Traded Funds
  • Initial Public Offerings
  • Security Lending and Borrowing Scheme etc.
Derivatives
  • Equity Derivatives (including Global Indices like CNX 500, Dow Jones and FTSE )
  • Currency Derivatives
  • Commodity Derivatives
  • Interest Rate Futures
Debt
  • Corporate Bonds

Important Notes :

MD & CEO : Mr. Vikram Limaye

Location : Mumbai, India

Founded : 1992


Last updated on: 02/10/2019

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