National Stock Exchange of India
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The National Stock Exchange of India Limited is the nation’s leading financial exchange. Its headquarters is located in Mumbai. Incorporated in 1992, it offers advanced, automated trading facilities to investors across the country. As per the metrics of its trading volume, the NSE is ranked fourth in the world by WFE (World Federation of Exchanges).
The stock exchange started its operations in 1994 on behalf of the Indian government. It strives hard for bringing a level of transparency to the nation’s capital market. The financial exchange was set up with the help of leading financial institutions and by following the recommendations of the Pherwani Committee. It has diverse shareholding assets from global and domestic investors.
Being the first ever stock exchange in India to provide electronic trading facilities, the NSE could integrate investors across the country into a single base.
The New York Stock Exchange is the world’s largest stock exchange. The Indian stock exchange regulated by SEBI (Securities & Exchange Board of India) holds the 11th position in the long list.
Unlike most of the developed countries, stock exchange trading accounts for a meager 4 percent of the nation’s total GDP.
How does NSE work?
Trading in the Indian stock exchange is done with the help of an electronic limit order book. Order matching happens through a trading computer. In the Indian market, sellers and buyers have the advantage of being anonymous.
Through displaying every buy and sell order in the trading system, an order driven market ensures more transparency to investors. Orders in NSE are placed via brokers who avail the facility of online trading to customers.
At NSE, trading continues throughout the week, except on Saturdays, Sundays, and other declared holidays.
Market Timings
Pre-opening session
While the order entry opens at 9.00 hours, the order entry closes at 9.08 hours.
Regular session
Market opens at 9.15 hrs & Market closes at 15.30 hrs.
The index of the National Stock Exchange is NIFTY 50. It represents about 63 percent of the total quantum of market capitalization listed under it. The index covers around 12 sectors of the economy which comes under 50 variable stocks.
Ashishkumar Chauhan is the managing director and chief executive officer of the NSE.
Benefits
NSI provides several benefits of listing with it.
Broad visibility: It provides a variety of trade and post-trade information. It helps the investors understand the market’s depth.
Sets up a premium marketplace: The volume of trading activity in the stock exchange lowers the impact cost on it. Automated trading systems help in maintaining transparency and consistency with an investor.
Biggest exchange: It is the largest exchange in the country with a trillion dollar market capitalization.
Fast transactions: Orders are processed at a quick pace in the exchange helping investors to avail the best prices.
Trade statistics: Trade statistics will be made available to listed companies every month, helping them track the performance of companies listed on the exchange.
In short, the National Stock Exchange creates favorable conditions for conducting market transactions.
Check your knowledge
Answer) National Stock Exchange of India Limited.
Answer) New York Stock Exchange.
Answer) Ashishkumar Chauhan.