Every Stock exchange is located at a particular place. For example, the Stock Exchange which is located in Delhi is known as Delhi Stock exchange. The Stock Exchange which is located in Mumbai (Maharashtra) earlier Bombay is known as Bombay Stock Exchange. But National Stock Exchange is formed to aim whole nation. At the request of the Government of India, the national Stock Exchange is endorsed by various Financial Institutions, Insurance companies, banks etc.
Incorporation and Origin of NSE
The National Stock Exchange was for the first time incorporated in 1992. It was incorporated as a tax paying company. The Stock Exchange was under the provisions of the Securities Contracts (Regulation) Act, 1956 was accepted as a recognized stock exchange. Since then, the National stock exchange was growing with leaps and pounds. In 1994, the stock exchange started to deal in the Whole Sale Debt Market and has started to operate in the Capital Market. However, it was not until 2000 when the stock exchange has for the first time stated its operations in the derivatives.
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The National Stock exchange is highly active in the field of market capitalization and thus aiming it the ninth largest stock exchange in the said field. Similarly, the trading of the stock exchange in equities and derivatives is so high that it has resulted in high turnovers and thus making it the largest stock exchange in India.
National stock Exchange Index
The Index of the National stock exchange is known as S&P CNX Nifty. It is popularly known as NIFTY. The other indices which are contributed by the National Stock Exchange are CNX Nifty Junior, CNX 100, S&P CNX 500 and CNX Midcap.
Contributions of the National stock Exchange
There are significant numbers of contributions which are provided by the National Stock Exchange. Some of the contributions are listed herein below:
There is hardly ant stock exchange which uses the satellite communication technology for trading. The National stock Exchange is a Stock exchange which was the first stock exchange in the world to use such technology. The technology is basically a client server based technology which is known as NEAT (National Exchange for Automated Trading);
- It is the first stock exchange in India which has started using the NSE model;
- It is the first stock exchange which has provided an innovation to the spot equity market. This is done by the national stock exchange by establishing a NSCCL (National Securities Clearing Corporation Ltd);
- It is the stock exchange which has established the first s\depository system in India by establishing a National Securities Depository system;
- It has launched the S&P CNX Nifty;
- The facility of internet trading was established by the National Stock exchange for the first time in year 2000;
- It has traded in GOLD ETFs and thus making it the first stock exchange in doing such activity;
- A media centre known as NSE-CNBC-TV 18 was launched in co-operation with the CNBC-TV 18;
Thus, these are the some of the achievements which are honored to the National Stock Exchange. The National stock Exchange has contributed mainly in all the fields and thus making it distinctive and unique stock exchange in India.
The national Stock Exchange is dealing in capital market and the main section of the capital market in which the National stock Exchange is dealing in are Equity, stock lending and borrowing, currency futures, wholesale debt market etc.
Working Hours of the national Stock exchange
Every Stock Exchange has a fixed number of duration in a day in which the transaction in that particular stock exchange takes place. The official timing of the national stock exchange is 9:00 AM to 3:30 PM. It is working an all week days except Sundays. It also does not work on all the official holidays that are affirmed by the National Stock exchange. All the official holidays of the National stock Exchange are declared well in advance.
Though the National stock exchange was established in year 1992 but it was recognized as the stock exchange only in year 1993. To safeguard the investors it has launched the Investor Grievance cell in year 1995. Thus, in all it can be regarded that the contribution made by the National stock exchange cannot be regarded and thus makes it a stock exchange which is not only boosting the economy of India but also safeguarding the investor in every aspect.