Pioneers of Demutualized Exchange Currency: The NSE

The National Stock Exchange of India Limited was incorporated in the year 1992, after being promoted by a handful of leading Financial Institutions in association with the Government of India. The Mumbai based Stock Exchange – NSE has since then seen a growth curve that has made it the largest stock exchange in India and 3rd largest globally, in terms of the volume of the transactions made.

Although it was started as a tax paying company in the year 1992, the following year saw it being recognized as a stock exchange. The firm is owned mutually by many leading financial institutions, banks, insurance firms, etc.

A definite paradigm shift was observed in the financial markets ever since the NSE came into the picture. Although NSE now serves a lot of purposes, it was initially brought in to offer transparency, i.e., the trading membership was no more confined to brokers, but was now available to any qualified individuals who met the minimum criterion to trade. The information regarding the price, which was limited to only a countable population, was now made available to the public, and this information being accessible remotely was an icing on the cake.

Salient Features of the NSE

The leader in financial market technology is also among the first in the market to have introduced the electronic-screen based limit order book that deals with the derivatives and ETFs. The fully integrated business model’s meteoric rise can be attributed to it’s futuristic and always-ahead-of-its-generation technology. The products and services offered by the National Stock Exchange of India believe in the model of sustained leadership across various asset classes. The high reactivity combined with the versatility of the exchange to meet the demands of both the trading and the non-trading businesses, with high-quality data services, push it much ahead of its competitors.

A few important transformations that NSE brought into the financial circuits are:

  • The Internet Trading was pioneered by the NSE early in the year 2000.
  • The National Stock Exchange of India also set-up and co-promoted the National Securities Depository Limited, the first of its kind in India.
  • The joint venture with CNBC – TV 18 media saw the birth of a new business channel which is one of the leading media centres in India.
  • Also, the first exchange in India to deal with the trading of ETFs – exchange trade funds.
  • Another remarkable achievement is the proposal for the traded derivatives, more specifically on equity index. Although it took a few years of deliberation on the policy and numerous debates that followed, NSE was finally granted the permission to start trading equity derivatives.

Other Key Offerings from NSE

Apart from the financial offerings, NSE also holds examinations and awards various degrees of certifications in the study of Financial markets. Covering 9 specialized modules, the curriculum currently covers key portions of capital and financial market study. With more than a handful of branches located across India, NSE is reaching great heights – both nationally and globally.

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Pioneers of Demutualized Exchange Currency: The NSE

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