Introduction of National Stock Exchange

The National Stock Exchange of India Limited (NSE) is one of the largest financial exchange of India. United in 1992, the NSE has grown into a modern, electronic market, which rated fourth in the world by equity trading volume in 2015. Trading started in 1994 with the launch of the wholesale debt market and a cash market segment shortly hereafter.

National Stock Exchange

Today, the exchange manages transactions in the wholesale debt, equity, and derivative markets. One of the more successful offerings is the NIFTY 50 Index, which tracks the largest assets in the Indian equity market. US investors can reach the index with exchanged traded funds like the iShares India 50 ETF, which is registered below the ticker symbol INDY.

BREAKING DOWN National Stock Exchange of India Limited

The National Stock Exchange of India Limited was the first trade in India to give modern, completely automated electronic trading. It was fixed up by a combination of Indian financial institutions with the aim of delivering excellent transparency to the Indian capital market. As of March 2016, the National Stock Exchange had collected $1.41 trillion in total market capitalization, making it the world’s 12th biggest stock exchange. The flagship index, the NIFTY 50, represents about 63% of total market capitalization placed on the exchange.

The whole traded worth of stocks listed on the index makes up about 44% of the traded price of all stocks on the NSE for the last six months. The index itself includes 12 different sectors of the Indian economy across 50 stocks. Besides the NIFTY 50 Index, the National Stock Exchange maintains market indices that track many market capitalizations, volatility, particular sectors, and factor policies.

The National Stock Exchange has been an explorer in Indian financial markets, being the leading electronic limit order book to trade derivatives and ETFs. The exchange holds more than 3,000 VSAT terminals, making the NSE the largest private wide-area network in the country. Ashok Chawla is the Chairman of the Board of Directors and Vikram Limaye is the Managing Director and CEO of the exchange.

Advantages of Listing on the National Stock Exchange

The National Stock Exchange is a premier marketplace for companies planning to list on a higher exchange. The sheer volume of trading activity and the importance of electronic systems support excellent transparency in trade matching and the settlement method. This in itself can increase visibility in the market and raise investor confidence. Using cutting-edge technology also permits orders to be charged more efficiently, following in greater liquidity and accurate prices.

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