National Stock Exchange:

Introduction:

THE National Stock Exchange of India is a stock Exchange that is located in Mumbai,

Maharashtra. The National Stock Exchange basically function in three market sections, that

is, (CM) the Capital Market Section); F&Q (The Future and Options Market Sections) and

WDM (Wholesale Debt Market Segment).  It is important place where the trading of shares,

debt etc takes place.

It was in year 1992 that the National stock Exchange was for the first time incorporated in

India. It was not regarded as a stock exchange at once. Rather, the national Stock

exchange was incorporated as a tax paying company and had got the recognition of a stock

exchange only in year 1993 the recognition was given under the provisions of the Securities

Contracts (Regulation) Act, 1956.

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.

It is the stock exchange wherein there is the facility of electronic exchange offering

investors. This facility is available in almost types of equitable transactions such as equities,

debentures, etc. it is also the largest stock exchange if calculated in the terms of traded

values.

Origin and History of the National Stock Exchange

The National Stock exchange was incorporated for the first time in November, 1992. The

national stock exchange was not incorporated as the national stock exchange; rather, it had

got the recognition of the recognized stock exchange in April, 1993. The National stock

Exchange has increased its trading facilities in June 1994 when the WDM (Wholesale Debt

Market Segment) was gone live. It is basically one of the three market segments in which

the national stock Exchange works. In the same year, 1994 November, the Capital Market

(CM) segment of the stock exchange goes live through VSAT.

The National Stock Exchange has become the first Clearing Corporation in India by the

introduction of NSCCL in April 1995. In the same year, 1995 July, it has introduced the

Investor protection fund which is a very important function introduced by the national Stock

Exchange.

The National stock Exchange had grown with leaps and bounds and had shown

tremendous growth mainly in all the fields and thus making it the largest stock exchange of

India by October, 1995.

The concept of NSCCL was extended by the introduction of clearing and settlement with the

help of NSCCL in year 1996. The National stock Exchange has introduced its Index for the

first time in year April 1996. The index was known as the S&P CNXNifty Index. In year June

1996, it has introduced the Settlement Guarantee Fund. The National Securities Depositor

Fund was launched by the National Stock exchange in year 1996, November, and thus

making it the first stock exchange who becomes the first depository in India.

Because of the efforts and introduction of new concept in the field of trading, the National

stock Exchange has received the BEST IT USAGE award by the computer Society of India

in the year November, 1996. It has also received an award for the TOP IT USER in the

name of “Dataquest award” in year December, 1996.

The National stock exchange has also introduced another index in year December 1996 in

the name of CNX Nifty Junior in year 1996.  It had again received an award for the BEST IT

USAGE award by the computer Society of India in the year December, 1996. In May, 1998

it had launched its first website. Further in October 1999, it had launched the NSE.IT LTD.

Further in year October, 2002, it had launched the Government securities index.

The growth of the National Stock Exchange has been tremendous in every field. It had

introduced several programmes and has achieved various achievements and awards while

working best in the field in which it is working. The efforts and hard work that is contributed

by the National Stock exchange has been tremendous and thus making an important and

unique stock exchange in India