National Stock Exchange

 History of NSE

The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India,
located in Mumbai. The NSE was established in 1992 as the first demutualized electronic
exchange in the country. NSE was the first exchange in the country to provide a modern, fully
automated screen-based electronic trading system which offered easy trading facility to the
investors spread across the length and breadth of the country. Vikram Limaye is Managing
Director & Chief Executive Officer of NSE.

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.[1] NSE's flagship index,
the NIFTY 50, the 50 stock index is used extensively by investors in India and around the
world as a barometer of the Indian capital markets. Nifty 50 index was launched in 1996 by the
NSE.[2] However, Vaidyanathan (2016) estimates that only about 4% of the Indian economy /
GDP is actually derived from the stock exchanges in India.[3]

Unlike countries like the United States where nearly 70% of the GDP is derived from larger
companies and the corporate sector, the corporate sector in India accounts for only 12-14% of
the national GDP (as of October 2016). Of these only 7,800 companies are listed of which only
4000 trade on the stock exchanges at BSE and NSE. Hence the stocks trading at
the BSE and NSE account for only around 4% of the Indian economy, which derives most of
its income related activity from the so-called unorganized sector and households.

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. In this
context, NSE was ahead of its times when it separated ownership and management in the
exchange under SEBI's supervision. The price information which could earlier be accessed
only by a handful of people could now be seen by a client in a remote location with the same
ease. The paper-based settlement was replaced by electronic depository-based accounts and
settlement of trades was always done on time. One of the most critical changes was that a
robust risk management system was set in place, so that settlement guarantees could protect
investors against broker defaults.

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.

The exchange 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. 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. NSE offers
trading, clearing and settlement services in equity, equity derivatives, debt, commodity
derivatives and currency derivatives segments. It was the first exchange in India to introduce
electronic trading facility thus connecting together the investor base of the entire country. NSE
has 2500 VSATs and 3000 leased lines spread over more than 2000 cities across India.

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.
  Background of NSE

TYPE Stock exchange

Location Mumbai, Maharashtra, India
Founded 1992
Owner National Stock Exchange of India
Limited
Key people Vikram Limaye (MD & CEO)
Currency Indian Rupee
No. of listing 1952
Market Cap US$2.27 trillion(April 2018)
Website www.nseindia.com

Indices
Broad Market Indices

NIFTY 50,NIFTY NEXT 50,NIFTY 100,NIFTY 200,NIFTY 500,NIFTY MIDCAP

50,NIFTY MIDCAP 100,NIFTY SMLCAP 100,INDIA VIX,NIFTY MIDCAP 150,NIFTY
SMLCAP 50,NIFTY SMLCAP 250,NIFTY MIDSML 400

Sectoral Indices

NIFTY BANK, NIFTY FIN SERVICE,NIFTY FMCG,NIFTY IT,NIFTY MEDIA,NIFTY

METAL,NIFTY PHARMA,NIFTY PSU BANK,NIFTY PVT BANK,NIFTY REALTY
Strategy Indicies

NIFTY DIV OPPS 50,NIFTY GROWSEC 15,NIFTY100 QUALTY30,NIFTY50 VALUE

20,NIFTY50 TR 2X LEV,NIFTY50PR 2X LEV,NIFTY50 TR 1X INV,NIFTY50 PR 1X
INV,NIFTY50 DIV POINT,NIFTY ALPHA 50,NIFTY50 EQL WGT,NIFTY100 EQL
WGT,NIFTY100 LOWVOL30,NIFTY200 QUALTY30

Thermatic Indices

NIFTY COMMODITIES,NIFTY CONSUMPTION,NIFTY CPSE,NIFTY

ENERGY,NIFTY INFRA,NIFTY100 LIQ 15,NIFTY MID LIQ 15,NIFTY MNC,NIFTY
PSE,NIFTY SERV SECTOR

Fixed Income Indices

NIFTY GS 8 13YR,NIFTY GS 10YR,NIFTY GS 10YR CLN,NIFTY GS 4 8YR,NIFTY

GS 11 15YR,NIFTY GS 15YRPLUS,NIFTY GS COMPSITE
 Trading Segments

 Automotive
 Banking/Finance
 Cement/Construction
 Chemicals
 Conglomerates
 Cons Durable
 Cons Non-Durable
 Engineering
 Food & Beverage
 Gold ETF
 Technology
 Manufacturing
 Media
 Metals & Mining
 Miscellaneous
 Oil & Gas
 Pharmaceuticals
 Retail/Real Estate
 Services
 Telecom
 Tobacco
 UTILITIES
 Sushil Maurya

Third Year BBA

Roll- 17 Div-1

Stock Exchange and Portfolio Management -1

Narmada college of Science and Commerce