National Stock Exchange of India - NSE

What is National Stock Exchange (NSE)?

The National Stock Exchange of India Limited (NSE) is the largest financial exchange in the Indian Market, with headquarters in Mumbai. It was incorporated in 1992 and is India’s 1st modern, transparent, and fully automated platform, facilitating seamless electronic trading.

The NSE began its operations in 1994    at the recommendations formulated by Pherwani Committee to bring a level of transparency to the country’s capital market. It offers a platform for companies listed on the exchange to raise capital. Investors can access equities, currency, debt, mutual funds, etc. It is one of India’s largest and most trusted exchange platform and ranks 11 globally.

How does National Stock Exchange work?

Trading through this stock exchange in India is carried out through an electronic limit order book where order matching takes place through a trading computer. This entire process does not have the interference of specialists or market makers and is driven entirely by orders; meaning that when investors place a market order, it is automatically matched with a limit order. Thus, in this market, sellers and buyers have the advantage of remaining anonymous.

NSE market trading on equities segment is carried on throughout the week, except on Saturdays, Sundays and other holidays declared by the stock exchange. The market timing is as follows –

·      Pre-Opening Session

  • Ø  Order entry opens at 09:00 Hours
  • Ø  Order entry closes at 09:08 Hours

·        Regular Session

  • Ø  Market opens at 09:15 Hours
  • Ø  Market closes at 15:30 Hours

Benefits of listing with National Stock Exchange of India

NSE offer several benefits of listing with it. Some of them are as follows: -

1.       Biggest Exchange in the country –  In terms of trading volume, the National Stock Exchange is the country’s largest exchange with a market capitalization exceeding $2.35 Trillion.

2.       Transparency – There is a large volume of trading activity bringing down the impact cost. Hence, the burden of trading expenses on investors is also less. Also, the trading system is automated, which in turns boosts visibility and transparency in trading.

3.       Fast Transactions – The volume of transactions which take place on the exchange is very large. So, the pace has to keep up in order to help the investors. The pace at which orders are processed in this exchange helps investors to avail best prices.

Thus, from the above benefits, National Stock Exchange (NSE) makes for a favourable facility to conduct market transactions smoothly and efficiently.

Investment Segments –

The National Stock Exchange of India includes the following investment segments mentioned below:

EQUITY – This comprises of a volatile class of assets which helps investors to maximize the returns from investments. Such investments include equities, mutual funds, security lending, Initial Public Offerings, etc.

EQUITY DERIVATIVES – Derivatives traded under NSE includes Global indices like Dow Theory, CNX 500, S&P 500, etc. With these methods, the exchange made remarkable headway in the trade market as far as equity derivatives are concerned.

DEBT – The core asset holding in such investment various short-term and long-term bonds, security products, mutual funds, etc.

NSE Stock Exchange launched India’s first debt platform on 13th May 2013. Its main aim was to provide investors with a digital, transparent and liquid platform for all the debt-based instrument trading.

Conclusion

The National Stock Exchange is India’s leading stock exchange offering everything from exchange listings to trading services, from clearing and settlement services to indices and much more.

So, if you are planning to trade on the National Stock Exchange of India or have any other queries related to it, feel free to reach out to our support desk. Our team would love to guide you through the entire process.

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