Introduction

There exist many stock exchanges in

India. However, only two among them are
well known in the international business
circles - the National Stock Exchange of
India and the Bombay Stock Exchange.
The National Stock Exchange of India
(NSE) is located in Mumbai. In fact, it is
one of the largest stock exchanges
present in India (and the third largest
stock exchange in the world). Roughly,
1,806 companies are already listed in this
exchange. Do not be fooled by the small
number;
according
to
the
latest
estimations, the market capitalization of
the NSE stands at INR 47,01,923 crores.
The market capitalization of some of the
top 50 companies in India decides the
index of the NSE sensex. This exchange
has unique attributes - such as the
absence of a single owner (it is co-owned
by a group of companies). This will
actually enable the board members to

manage the operations of the stock

exchange in a more efficient manner
without considering the stakes of the
owners!
The
increasing
number
of
share
transactions in NSE has helped in gaining
the attention of foreign investors such as
the NYSE Euronext and the Goldman
Sachs.
India is an emerging super-power and the
dramatic growth pattern of this exchange
enables it to get the meritorious title of
second fastest growing stock exchange in
the world. The exchange plays a
considerable role in the uplift of Indian
economy. As of today, there are 24 stock
exchanges in India. The NSE had set
certain benchmarks in the industry and
this enabled the others to follow suit. The
NSE was India's first stock exchange to
feature electronic limit order book for
share transactions. Under the guidance of
the NSE, the National Securities Clearing
Corporation came into existence in India.

The
National
Securities
Depository
Limited - a leading financial entity that
takes care of the funds and securities
deposited by some of the major
corporations in India was set up thanks to
the efforts imparted by the NSE.
The earlier mentioned Nifty index, which
is still the key index to all stock
exchanges operating within India, was
established by the same stock exchange.
With the advent of the internet, the
traders began to display a keen interest
on online trading. Without any significant
delays, a fully-fledged electronic network
was put to use by the NSE live. The same
electronic platform is being utilized by
hordes of stockholders and brokers to
conduct their stock market transactions
even on this day.
The NSE deals with equity, futures and
options, debt market in the retail and
wholesale sector and in currency futures.

The trading hours commence from 09:00

and end by 15:30 IST. There are talks to
increase the trade timings to 17:30. In
order to increase the levels of interest in
the mind of the commoner, the NSE
administers several kinds of exams and
online certifications (certification in
financial
markets).
The
underlying
principle is to generate additional share
transactions and thus increase the
liquidity and volatile nature of the market.

Purpose, Vision and

Values
Purpose
Committed to improve the financial well-being
of people
Vision
To continue to be a leader, establish global
presence facilitate the financial well being of
people
Values
NSE is committed to the following core values

Integrity
Customer focused culture
Trust, respect and care for the individual
Passion for excellence
Teamwork

History of NSE
The
National
Stock
exchange
was
incorporated for the first time in November,
1992. The national stock exchange was not
incorporated as the national stock exchange;
rather, it had got the recognition of the
recognized stock exchange in April, 1993. The
National stock Exchange has increased its
trading facilities in June 1994 when the WDM
(Wholesale Debt Market Segment) was gone
live. It is basically one of the three market
segments in which the national stock
Exchange works. In the same year, 1994
November, the Capital Market (CM) segment
of the stock exchange goes live through VSAT.
The National Stock Exchange has become the
first Clearing Corporation in India by the
introduction of NSCCL in April 1995.

In the same year, 1995 July, it has introduced

the Investor protection fund which is a very
important function introduced by the national
Stock Exchange.
The National stock Exchange had grown with
leaps and bounds and had shown tremendous
growth mainly in all the fields and thus making
it the largest stock exchange of India by
October, 1995.
The concept of NSCCL was extended by the
introduction of clearing and settlement with the
help of NSCCL in year 1996. The National
stock Exchange has introduced its Index for
the first time in year April 1996. The index was
known as the S&P CNX Nifty Index. In year
June 1996, it has introduced the Settlement
Guarantee Fund. The National Securities
Depositor Fund was launched by the National
Stock exchange in year 1996, November, and
thus making it the first stock exchange who
becomes the first depository in India.

Because of the efforts and introduction of new

concept in the field of trading, the National
stock Exchange has received the BEST IT
USAGE award by the computer Society of
India in the year November, 1996. It has also
received an award for the TOP IT USER in the
name of Dataquest award in year December,
1996.
The National stock exchange has also
introduced another index in year December
1996 in the name of CNX Nifty Junior in year
1996. It had again received an award for the
BEST IT USAGE award by the computer
Society of India in the year December, 1996. In
May, 1998 it had launched its first website.
Further in October 1999, it had launched the
NSE.IT LTD. Further in year October, 2002, it
had launched the Government securities
index.
The growth of the National Stock Exchange
has been tremendous in every field.

It had introduced several programmes and has

achieved various achievements and awards
while working best in the field in which it is
working. The efforts and hard work that is
contributed by the National Stock exchange
has been tremendous and thus making an
important and unique stock exchange in India.

Markets
NSE offers trading in the following segments:
Equities

Equities

Indices

Mutual Funds

Exchange Traded Funds

Initial Public Offerings

Security Lending and Borrowing Scheme

Derivatives

Equity Derivatives (including Global Indices

like CNX 500, Dow Jones and FTSE )
Currency Derivatives

Interest Rate Futures

Debt
Corporate Bonds
Equity Derivatives

The National Stock Exchange of India Limited

(NSE) commenced trading in derivatives with
the launch of index futures on 12 June 2000.
The futures and options segment of NSE has
made a global mark. In the Futures and Options
segment, trading in CNX Nifty Index, CNX IT
index, Bank Nifty Index, Nifty Midcap 50 index
and single stock futures are available. Trading
in Mini Nifty Futures & Options and Long term
Options on CNX Nifty are also available. The
average daily turnover in the F&O Segment of
the Exchange during the financial year April
2013 to March 2014 stood at Rs 1,52,236 crore.
On 29 August 2011, National Stock Exchange
launched derivative contracts on the worlds
most followed equity indices, the S&P 500 and
the Dow Jones Industrial Average. NSE is the
first Indian exchange to launch global indices.
This is the also the first time in the world that
futures contracts on the S&P 500 index were
introduced and listed on an exchange outside of
their home country, USA. The new contracts
include futures on both the DJIA and the S&P
500, and options on the S&P 500.

On 3 May 2012, the National Stock exchange

launched derivative contracts (futures and
options) on FTSE 100, the widely tracked index
of the UK equity stock market.
This was the first of its kind of an index of the
UK equity stock market launched in India. FTSE
100 includes 100 largest UK listed blue chip
companies and has given returns of 17.8 per
cent on investment over three years. The index
constitutes 85.6 per cent of UKs equity market
cap.
On 10 January 2013, the National Stock
Exchange signed a letter of intent with the
Japan Exchange Group, Inc. (JPX) on
preparing for the launch of CNX Nifty Index
futures, a representative stock price index of
India, on the Osaka Securities Exchange Co.,
Ltd. (OSE), a subsidiary of JPX.
Moving forward, both parties will make
preparations for the listing of yen-denominated
CNX Nifty Index futures by March 2014, the
integration date of the derivatives markets of
OSE and Tokyo Stock Exchange, Inc. (TSE), a
subsidiary of JPX. This is the first time that retail

and institutional investors in Japan will be able

to take a view on the Indian markets, in addition
to current ETFs, in their own currency and in
their own time zone.
Investors will therefore not face any currency
risk, because they will not have to invest in
dollar denominated or rupee denominated
contracts.
Currency Derivatives
In August 2008, currency derivatives were
introduced in India with the launch of Currency
Futures in USD INR by NSE. It also added
currency futures in Euros, Pounds and Yen. The
average daily turnover in the F&O Segment of
the Exchange on 20 June 2013 stood at Rs
41,926.16 crore in futures and Rs 27,397.70
crore in options, respectively.
Interest Rate Futures
In December 2013, exchanges in India received
approval from market regulator SEBI for
launching interest rate futures (IRFs) on a
single GOI bond or a basket of bonds that will
be cash settled. Market participants have been
in favour of the product being cash settled and

being available on a single bond. NSE will

launch the NSE Bond Futures on January 21 on
highly liquid 7.16 percent and 8.83 percent 10year GOI bonds.
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 an approval for interest-rate futures, as
recommended by the SEBI-RBI committee.
Debt Market
On 13 May 2013, NSE launched India's first
dedicated debt platform to provide a liquid and
transparent trading platform or debt related
products.
The Debt segment provides an opportunity to
retail investors to invest in corporate bonds on a
liquid and transparent exchange platform. It
also helps institutions who are holders of
corporate bonds. It is an ideal platform to buy
and sell at optimum prices and help Corporate
to get adequate demand, when they are issuing
the bonds.

Trading Schedule
Trading on the equities segment takes place on
all days of the week (except Saturdays and
Sundays and holidays declared by the
Exchange in advance). The market timings of
the equities segment are:

(1) Pre-open session

Order entry & modification Open: 09:00

hours

Order entry & modification Close: 09:08

hours
Random closure in last one minute Pre-open
order matching starts immediately after close of
pre-open order entry.

(2) Regular trading session

Normal/Retail Debt/Limited Physical

Market Open: 09:15 hours

Normal/Retail Debt/Limited Physical

Market Close: 15:30 hours.

NSE Family
NSCCL
The National Securities Clearing Corporation Ltd. (NSCCL), a wholly
owned subsidiary of NSE, was incorporated in August 1995. It was the
first clearing corporation to be established in the country and also the
first clearing corporation in the country to introduce settlement
guarantee.
It was set up with the following objectives:

To bring and sustain confidence in clearing

and settlement of securities;

To promote and maintain, short and

consistent settlement cycles;

To provide counter-party risk guarantee,

and

To operate a tight risk containment system.

NSCCL commenced clearing operations in April 1996. It has since
completed more than 2400 settlements (equities segment) without
delays or disruptions.
National Securities Clearing Corporation Limited First Indian
Clearing Corporation to get rated

CRISIL has assigned its highest corporate credit rating of AAA to the
National Securities Clearing Corporation Ltd (NSCCL). 'AAA' rating
indicates highest degree of strength with regard to honoring debt
obligations. NSCCL is the first Indian Clearing Corporation to get this
rating. The rating reflects NSCCLs status as Clearing Corporation for
NSE, Indias largest stock exchange. The rating also factors in NSCCLs
rigorous risk management controls and adequate settlement guarantee
cover.

NSDL
National
Securities
Depository
Limited (NSDL) is an Indian central securities
depository based in Mumbai. It was established
in 1995 as the first electronic securities
depository in India with national coverage
based on a suggestion by a national institution
responsible for the economic development of
India
It has established a national infrastructure using
international standards that handles most of
the securities held and settled in dematerialized
form in the Indian capital market.
NSE is the promoter of NSDL.

IISL
India Index Services & Products Limited (IISL),
a subsidiary of NSE Strategic Investment
Corporation Limited was setup in may 1998 to
provide a variety of indices and index related
services and products for the Indian capital
markets.
IISL provides a broad range of services,
products and professional index services. It
maintains over 80 equity indices comprising
broad-based benchmark indices, sectoral
indices and customised indices. Many
investment and risk management products
based on IISL indices have been developed in
the recent past, within India and abroad.

These include index based derivatives traded

on NSE, Singapore Exchange (SGX) and Chicago
Mercantile Exchange (CME) and a number of
index funds and exchange traded funds

Benefits of Listing in NSE

A premier marketplace
The sheer volume of trading activity ensure that
the impact cost is lower on the Exchange which in
turn reduces the cost of trading to the investor.
NSE's automated trading system ensure consistency
and transparency in the trade matching which
enhances investors confidence and visibility of our
market.

Visibility
The trading system provides unparallel level of
trade and post-trade information. The best 5 buy

and sell orders are displayed on the trading system

and the total number of securities available for
buying and selling is also displayed. This helps the
investor to know the depth of the market. Further,
corporate announcements, results, corporate
actions etc are also available on the trading
system.

Largest exchange
NSE is the largest exchange in the county in terms
of trading volumes. During the year 2013-2014, NSE
reported a turnover of 28,08,488 crores in the
equities segment.
Unprecedented reach
NSE provides a trading platform that extends across
the length and breadth of the country. Investors
can avail trading facilities on the NSE Trading
Network over 2,00,000 terminals in over 2000
cities. The Exchange uses the latest in
communication technology to give instant access
from every location.

Transaction speed

The speed at which the Exchange processes orders,

results in liquidity and best available prices. The
highest number of trades in a day of 1,18,06,828
was recorded on May 16, 2014.

Short settlement cycles

The Exchange has successfully completed more
than 3700 settlements without any delays.

Broadcast facility for corporate announcements

The NSE network is used to disseminate information
and company announcements across the country.
Important information regarding the company is
announced to the market through the Broadcast
Mode on the NEAT System as well as disseminated
through the NSE website.
Corporate developments such as financial results,
book closure, announcements of bonus, rights,
takeover, mergers etc. are disseminated across the
country thus minimizing scope for price
manipulation or misuse.

Trade statistics for listed companies

Listed companies are provided with monthly trade
statistics for all the securities of the company
listed on the Exchange.

Investor service centers

Fourteen investor-service centers opened by NSE
across the country cater to the needs of investors.

Nominal listing fees

The listing fee charged by the Exchange is much
lower compared to the listing fees charged by other
exchanges.

Project on NSE
Name: Pranay Kapoor
Class: SY BFM
Roll No: 16

Bibliography
NSE official website: www.nseindia.com
Wikipedia website:
www.wikipedia.com/nse