National Stock Exchange NSE
The NSE or National Stock Exchange of India is amongst the leading financial markets of this country that provides the stockholders with a unified trading interface.
Being the first demutualized electronic exchange, this institute happens to be the second-biggest network in equity share trading on the planet.
The NSE, which was founded in 1992, was developed as a joint effort by the leading business entities and it helps to encourage risk-free stock trading for the expanding investment market of India.
NSE offers smooth access to a fully automated and advanced trading channel for its customers.
The NSE, having its headquarters in Mumbai, can boast of having a diversified portfolio consisting of shares or stocks of the leading multinational conglomerates.
In 1994, the corporate entered the wholesale debt market with dedicated services in the relevant field.
Bank Nifty and Nifty happen to be the two flagship indices of the National Stock Exchange right now.
Investors across the globe can study the dynamics of the stock markets of India with the aid of the NIFTY 50 index.
According to the 2021 records, 5.5 crore investors were recorded by the NSE to its credit.
The exchange was the major derivatives exchange in the world in 2019, 2020, as well as 2021.
Table of Contents
Functions of NSE
• Providing an equal opportunity for the investors to take part in the trading system via a suitable communication network.
• Creating a nation-expansive trading facility intended for equity, debt, as well as other asset classes that are accessible to investors.
• Allowing book-entry settlement systems and shorter trade settlement periods.
• Satisfying the existing global standards intended for the fiscal securities markets.
• Providing an efficient, fair, and transparent securities market for investors making use of electronic trading systems.
NSE created the NSDL (National Securities Depository Limited) for the first time, enabling investors to trade and hold securities in an electronic format.
Moreover, only a few traders present at the exchange got access to the price information;
however, it is extensively available to everybody right now.
This made it quite simple to invest and it also offered increased transparency.
National Stock Exchange’s Salient features
• The NSE helps the investors to understand the details about the company and the depth of the market by providing comprehensive information.
• There is a reduction in the trading expenses of the investor since the trading volumes are high and the exchange has a reduced impact cost.
• It is possible for listed companies to gain access to trade statistics on a monthly basis. Unlike other exchanges, the listing charge happens to be lower.
• The exchange features a broadcast facility to make announcements to shareholders by companies.
The objective of NSE
• To provide equitable access to Indian investors in the stock market.
• To create a comprehensive national trading facility for securities.
• To enable faster stock settlement cycles and book-entry settlements.
• To create an efficient, transparent, and fair market to share trade.
• To satisfy trading standards fixed by international financial companies.
Benefits of listing with NSE
Below we have mentioned the benefits of listing with NSE –
• Convenience and feasibility – It becomes quite simple and convenient to trade because of the automated trading system. The trading expenses for investors are lowered because of the level of trading activity on the National Stock Exchange.
• Transparency – It becomes quite simple for the investors to quickly verify the trading system’s buy and sell orders along with the total number of securities obtainable for the transaction. In this way, investors are capable of understanding the market depth. Also, the trading system is extremely effective in offering all particulars regarding the trade as well as post-trade information.
• Fast response – it is possible for investors to purchase and sell securities at the best prices thanks to the faster response of the trading system.
• Biggest Exchange in India – The NSE is the largest exchange for the country when it comes to trading volume with a $3.4 trillion net market capitalization.
• Trade Statistics – It is feasible for the businesses listed on NSE to receive trade statistics each month to monitor their stock exchange performance.
The NSE (National Stock Exchange of India Limited) can be considered to be the biggest Indian financial market and the 4th biggest when it comes to trading volume.
Moreover, it is the first completely automatic electronic trading exchange in this country.