National Stock Exchange
National Stock Exchange is the largest stock exchange and Financial Market in India in terms of daily turnover and trading volume in both equity and derivative trading. got Established in 1992. NSE got recognized as stock exchange under the Securities Contract Act 1956. Shareholders consist of 20 financial institutions includes banks and insurance companies. The National Stock Exchange is stock exchange located at Mumbai, Maharashtra, India. It is in the top 20 largest stock exchanges in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading NIFTY is a prime index of the The National Stock Exchange of India Limited the Mumbai based stock exchange. And also rank third in the world for transacted volume. NSE has become the first Clearing Corporation in India by introducing of NSCCL in year 1995. Exchange has introduced the Investor protection fund also.
Introduction of new concept in trading, the NSE received the BEST IT USAGE award by the computer Society of India in the year 1996. Exchange was also rewarded for the TOP IT USER in the name of `Dataquest award` in year 1996.
NSE Objective is to establish trading facility nationwide for all types of securities, and to ensures equal access to investors through the process telecommunication network. This exchange conduct transactions in the wholesale debt, equity markets and derivative markets including currencies and mutual fund units. Exchange also allows new listings, debt issuances, Indian Depository Receipts & initial public offers by overseas companies raising capital in India.
NSE also provides a concept of day trading which suits well for investor who want to hold security only for new hours and square off position before market gets closed. But other investors who think that this type of trading is quite risky.
NSE supports more than 3,500 VSAT terminals, making the NSE the largest private wide-area network in the country. National Stock Exchange is owned by the premiere financial institutions, banks, insurance companies and other financial intermediaries in India. But the ownership and the management of the exchange work as separate entities. The NSE S&P CNX Nifty 50 that is popularly known as NIFTY is the key index of the NSE.
NIFTY is an index that is made of 50 major stocks listed at the National Stock Exchange in terms of market capitalization. NIFTY is a well diversified index as these 50 companies are from 21 sectors. The index is owned and managed by India Index Services and Products Ltd. (IISL). IISL, which is a joint venture of National Stock Exchange and CRISIL is the first specialized company in India on Index. The company has a marketing and licensing agreement with Standard Poor's (S&P) - the world market leader in index services. The NIFTY index is used for different purposes like benchmarking fund portfolios, index based derivative trading and index funds.
NIFTY is one of the leading index in the Indian stock market and the prime index of the National Stock Exchange If you consider all the stocks in the NIFTY it accounts for almost 50% of the total traded volume in the National Stock Exchange These NIFTY stocks accumulatively represent about 58.64% of the total market capitalization as on 31st March, 2008. The impact cost of the S&P CNX Nifty index is 0.15% for a portfolio size of Rs.2 crore. The NIFTY index is professionally maintained by IISL which is the premiere index management company in India. The NIFTY index is ideal for derivative trading and huge number of investors trade in NIFTY derivatives on regular basis..
Hard work has been tremendous and thus makes NSE an unique stock exchange in India.