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
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 –
ØOrder entry opens at 09:00 Hours
ØOrder entry closes at 09:08 Hours
ØMarket opens at 09:15 Hours
ØMarket 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: -
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.
– 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
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
Thus, from the above benefits, National Stock Exchange
(NSE) makes for a favourable facility to conduct market transactions smoothly
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.
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.