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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.

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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 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 SchemeDerivatives

Equity Derivatives (including Global Indices like CNX 500, Dow Jones and FTSE )

Currency Derivatives Interest Rate FuturesDebt

Corporate BondsEquity 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 world’s 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 UK’s 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 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 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 ScheduleTrading 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

NSCCLThe 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 ratedCRISIL 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 NSCCL’s status as Clearing Corporation for NSE, India’s largest stock exchange. The rating also factors in NSCCL’s rigorous risk

management controls and adequate settlement guarantee cover.

NSDLNational 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.

IISLIndia 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 NSEA premier marketplaceThe 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.

VisibilityThe 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 exchangeNSE 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 reachNSE 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 speedThe 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 announcementsThe 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 companiesListed 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 feesThe 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