NSE Project

  • View
    23

  • Download
    2

Embed Size (px)

DESCRIPTION

all about nse

Text of NSE Project

IntroductionThere 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 ValuesPurposeCommitted to improve the financial well-being of peopleVisionTo continue to be a leader, establish global presence facilitate the financial well being of people ValuesNSE 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 CNXNifty 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 SchemeDerivatives Equity Derivatives (including Global Indices like CNX 500, Dow Jones and FTSE ) Currency Derivatives Interest Rate FuturesDebt Corporate BondsEquity DerivativesThe 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 DerivativesIn 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 FuturesIn 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 10-year 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 Mark