National Stock Exchange of India

National Stock Exchange
राष्ट्रीय शेअर बाजार
Type	Stock Exchange
Location	Mumbai, India
Founded	1992
Owner	National Stock Exchange of India Limited
Key people	Mr.Ravi Narain - MD
Currency	INR
No. of listings	1810
MarketCap	Rs 47,01,923 crore (2009 August)
Indexes	S&P CNX Nifty CNX Nifty Junior S&P CNX 500
Website	www.nse-india.com

The National Stock Exchange (NSE) (Hindi: राष्ट्रीय शेअर बाजार) is a stock exchange located at Mumbai, India. It is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading.^[1]. NSE has a market capitalization of around Rs 47,01,923 crore (7 August 2009) and is expected to become the biggest stock exchange in India in terms of market capitalization by 2009 end.^[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] As of 2006^[update], the NSE VSAT terminals, 2799 in total, cover more than 1500 cities across India ^[5]. In October 2007, the equity market capitalization of the companies listed on the NSE was US$ 1.46 trillion, making it the second largest stock exchange in South Asia. 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]

Origins

NSE building at BKC, Mumbai

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.

Innovations

NSE has remained in the forefront of modernization of India's capital and financial markets, and its 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.
• 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 [1].
• 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 CNBC-TV18.
• 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.

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 & BROWING

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 EURO, POUND & YEN. Interest Rate Futures was introduced for the first time in India by NSE on 31 August 2009, exactly after one year of 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 GOI bond (NOTIONAL) was launched with quarterly maturities. [2]

Hours

NSE's normal trading sessions are conducted from 9:00 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.^[8] 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.

There were System Testing going on and opinions, suggestions or feedback on the New Proposed Timings are being invited from the brokers across India. And finally on Nov 18, 2009 regulator decided to drop their ambitious goal of longest Asia Trading Hours due to strong opposition from its members.

On Dec 16, 2009, NSE announced that it would pre-pone the market opening at 9am from Dec 18, 2009. So NSE trading hours will be from 9:00 am till 3:30 pm India Time.

However, on Dec 17, 2009, after strong protests from brokers, the Exchange decided to postpone the change in trading hours till Jan 04, 2010.

NSE new market timing from Jan 04, 2010 is 9:00 am till 3:30 pm India Time.

NSE 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
• 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

Indices

NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including:^[9]

• 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 . These are typically index funds and GOLD etfs. Some of the popular etf's on NSE are.

• NIFTYBEES - ETF based on NIFTY index Nifty BEES Live quote
• GoldBees - ETF based on Gold prices. Tracks the price of Gold. Each unit is equalent to 1 gm of gold and bears the price of 1gm of gold.
• BankBees - ETF that tracks the CNX Bank Index.

Certifications

NSE also conducts online examination and awards certification, under its programmes of NSE's Certification in Financial Markets (NCFM)[3]. Currently, certifications are available in 19 modules, covering different sectors of financial and capital markets. Branches of the NSE are located throughout India.

NSE - Corporate Offices in India

National Stock Exchange of India Ltd. Exchange Plaza, Plot no. C/1, G Block, Bandra-Kurla Complex Bandra (E) Mumbai - 400 051.

Tel No: +91 (022) 26598100 - 8114 Fax No: +91 (022) 26598120

NSE - Branch Offices

Ahmedabad 406 Sakar II Near Ellis Bridge Ahmedabad - 380 006

Tel No : +91 (079) 2658 0212/ 2658 0213 Fax No : +91 (079) 2657 6123

Chennai 2nd Floor, Ispahani Centre, Door No 123-124, Nungambakkam High Road, Nungambakkam Chennai - 600 034

Tel No : +91 (044) 2833 2500 / 2833 2501 Fax No : +91 (044) 2833 2510

Delhi 4th Floor, Jeevan Vihar Building Parliament Street New Delhi-110001

Tel No: +91 (011) 23344313 to 23344327 Fax No: +91 (011) 2336 6658

Hyderabad H No.3-6-322 Mahavir House, IInd Floor Chamber no.203 & 204 Basheerbagh Hyderabad : 500029

Tel No: +91 (040) 23227084 , 23227085 Fax No: +91 (040) 23227086

Kolkata 1st Floor, Park View Apartments 99, Rash Behari Avenue, Kolkata – 700 029.

Tel No  : +91 (033) 4040 0400, 24631802-1805, 24631809-1812 Fax No : +91 (033) 4040 0440, 24631791, 24631806

See also

• List of South Asian stock exchanges
• Mahurat trading
• Clause 49
• Share bazaar
• Bombay Stock Exchange

References

External links

• Official site
• NSE Charts NSE EOD Charts
• List of NSE Trading Holidays - 2009
• List of NSE Trading Holidays 2010
• NSE.IT Official site
• Online Share Trading