National Stock Exchange (NSE)

The National Stock Exchange of India Limited (NSE) is the leading stock exchange in India, located in Mumbai, Maharashtra. It is the world’s largest derivatives exchange in terms of the number of contracts traded.

History

• The NSE was established in 1992 as a demutualised electronic exchange.
• It was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in 1993.
• In 1994, the NSE launched its flagship index, the Nifty 50.
• In 2000, the NSE became the first stock exchange in India to introduce screen-based trading.
• In 2002, the NSE launched its online trading platform, NSE NOW.
• In 2006, the NSE became the first stock exchange in India to introduce electronic voting for shareholders.
• In 2010, the NSE launched its mobile trading platform, NSE mTrading.
• In 2012, the NSE became the first stock exchange in India to introduce algorithmic trading.
• In 2015, the NSE launched its blockchain-based trading platform, NSE Blockchain.

Key Features

• The NSE is a fully automated, electronic exchange.
• It offers trading in a wide range of securities, including stocks, derivatives, and debt instruments.
• The NSE has a market capitalization of over $3 trillion.
• The NSE is the largest derivatives exchange in the world in terms of the number of contracts traded.
• The NSE is a member of the World Federation of Exchanges (WFE).

Trading Hours

The NSE is open for trading from 9:15 am to 3:30 pm on weekdays, except for public holidays.

Market Segments

The NSE has the following market segments:

• Equity Market: This segment offers trading in stocks of listed companies.
• Derivatives Market: This segment offers trading in futures and options contracts on stocks, indices, and commodities.
• Debt Market: This segment offers trading in government bonds, corporate bonds, and other debt instruments.
• Currency Market: This segment offers trading in foreign exchange contracts.
• Mutual Fund Market: This segment offers trading in mutual fund units.

Indices

The NSE publishes a number of indices, including:

• Nifty 50: This index comprises the 50 most liquid stocks listed on the NSE.
• Nifty Bank: This index comprises the 20 most liquid banking stocks listed on the NSE.
• Nifty IT: This index comprises the 20 most liquid IT stocks listed on the NSE.
• Nifty Pharma: This index comprises the 20 most liquid pharma stocks listed on the NSE.
• Nifty FMCG: This index comprises the 20 most liquid FMCG stocks listed on the NSE.

Conclusion

The NSE is a leading stock exchange in India and the world’s largest derivatives exchange in terms of the number of contracts traded. It offers a wide range of securities, indices, and trading platforms.