NATIONAL STOCK EXCHANGE OF INDIA

(NSE)


the national Stock Exchange is the latest, most modern and technology driven exchange. It was incorporated in 1992 and was recognized as a stock acting in April 1993. It started operation in 1994, with trading on the wholesale debt market segment. Subsequently, it launched the capital market segment in November 1994 at trading platform for equities and for the future and option segment in June 2000 for various derivative instrument. NSE has set up a nationwide fully automated screen based trading system. The NSC was set up by leading financial institutional, banks, insurance needs and other financial intermediaries. It is managed by professional, who do not directly or indirectly trade on the exchange. That ready right are with that reading member who offered their service to the investor. The board of NSE compare senior executive from promote an institution and eminent professional, without having any representation from trading member.

Objectives of NSE
NSE was set up with the following objective:

   
  1. establishing a nationwide reading facility for all type of securities.
  2. Inserting equal access to investor all over the country through an appropriate communication network.
  3. Providing a fair, efficient and transparent securities market using electronic trading system.
  4. Enabling shorter settlement cycles end book entry settlement.
  5. Meeting international benchmark and standards.
Within a span of 10 year, NSE has been able to achieve its objective for which it was set up. It has been playing a leading role as a change agent in transforming the Indian capital market. NSE has been able to take the stock market to the doorstep of the investor. It had insured that technology has been harnessed to deliver the service to the investor across the country at the lowest cost. It has provided a nationwide screen based automated trading system with a high degree of transparency and equal access to investor irrespective of geographical location.

Market Segments of NSE
the exchange provide trading in the following two segments.

(1) wholesale debt market segment : this segment provide a trading platform for a wide range of fixed income securities that included control government securities, treasury bill, state development loan, bond issued by public sector undertaking, floating rate bonds, zero coupon bonds, index bond, commercial paper, certificate of deposit, corporate the venture and mutual fund.

(2) capital market segment : capital market segment of NSE provide an efficient and transparent platform for trading in equity, preference, debenture, exchange traded fund as well as retail government securities.