Introduction

1. Overview of Indian financial market

Financial market comprise of the primary market, FDIs,

alternative investment options, banking and insurance and the
pension sectors, asset management segment as well. With all
these elements in the India Financial market, it happens to be
one of the oldest across the globe and is definitely the fastest
growing and best among all the financial markets of the
emerging economies. The history of Indian capital markets
spans back 200 years, around the end of the 18th century. It
was at this time that India was under the rule of the East India
Company. The capital market of India initially developed
around Mumbai; with around 200 to 250 securities brokers
participating in active trade during the second half of the 19th
century.The financial market in India at present is more
advanced than many other sectors as it became organized as
early as the 19th century with the securities exchanges in
Mumbai, Ahmedabad and Kolkata.

INDIAN FINANCIAL SYSTEM

 The economic development of a nation is reflected by the

progress of the various economic units, broadly classified into
corporate sector, government and household sector.  While
performing their activities these units will be placed in a
surplus/deficit/balanced budgetary situations.

There are areas or people with surplus funds and there are
those with a deficit.  A financial system or financial sector
functions as an intermediary and facilitates the flow of funds
from the areas of surplus to the areas of deficit.  A Financial
System is a composition of various institutions, markets,
regulations and laws, practices, money manager, analysts,
transactions and claims and liabilities.
Financial System;

The word "system", in the term "financial system", implies a

set of complex and closely connected or interlined institutions,
agents, practices, markets, transactions, claims, and liabilities
in the economy.  The financial system is concerned about
money, credit and finance-the three terms are intimately
related yet are somewhat different from each other. Indian
financial system consists of financial market, financial
instruments and financial intermediation. These are briefly
discussed below;

FINANCIAL MARKETS

A Financial Market can be defined as the market in which

financial assets are created or transferred. As against a real
transaction that involves exchange of money for real goods or
services, a financial transaction involves creation or transfer of
a financial asset. Financial Assets or Financial Instruments
represents a claim to the payment of a sum of money
sometime in the future and /or periodic payment in the form of
interest or dividend.

Money Market- The money market ifs a wholesale debt market

for low-risk, highly-liquid, short-term instrument.  Funds are
available in this market for periods ranging from a single day
up to a year.  This market is dominated mostly by government,
banks and financial institutions.

Capital Market -  The capital market is designed to finance the

long-term investments.  The transactions taking place in this
market will be for periods over a year.

Forex Market - The Forex market deals with the multicurrency

requirements, which are met by the exchange of currencies. 
Depending on the exchange rate that is applicable, the transfer
of funds takes place in this market.  This is one of the most
developed and integrated market across the globe.

Credit Market- Credit market is a place where banks, FIs and

NBFCs purvey short, medium and long-term loans to corporate
and individuals.

Constituents of a Financial System

FINANCIAL INTERMEDIATION

Having designed the instrument, the issuer should then ensure

that these financial assets reach the ultimate investor in order
to garner the requisite amount.  When the borrower of funds
approaches the financial market to raise funds, mere issue of
securities will not suffice.  Adequate information of the issue,
issuer and the security should be passed on to take place. 
There should be a proper channel within the financial system to
ensure such transfer. To serve this purpose, Financial
intermediaries came into existence. Financial intermediation in
the organized sector is conducted by a widerange of institutions
functioning under the overall surveillance of the Reserve Bank
of India. In the initial stages, the role of the intermediary was
mostly related to ensure transfer of funds from the lender to
the borrower.  This service was offered by banks, FIs, brokers,
and dealers.  However, as the financial system widened along
with the developments taking place in the financial markets,
the scope of its operations also widened. Some of the
important intermediaries operating ink the financial markets
include; investment bankers, underwriters, stock exchanges,
registrars, depositories, custodians, portfolio managers, mutual
funds, financial advertisers financial consultants, primary
dealers, satellite dealers, self regulatory organizations, etc.
Though the markets are different, there may be a few
intermediaries offering their services in move than one market
e.g. underwriter.  However, the services offered by them vary
from one market to another.

Intermediary Market Role

Secondary Market to
Stock Exchange Capital Market
securities
 Corporate advisory
Capital Market,
Investment Bankers services, Issue of
Credit Market
securities
Subscribe to
Capital Market,
Underwriters unsubscribed
Money Market
portion of securities
 Issue securities to
the investors on
Registrars,
behalf of the
Depositories, Capital Market
company and handle
Custodians
share transfer
activity
Market making in
Primary Dealers
Money Market government
Satellite Dealers
securities
Ensure exchange ink
Forex Dealers Forex Market
currencies

FINANCIAL INSTRUMENTS

Money Market Instruments

The money market can be defined as a market for short-term

money and financial assets that are near substitutes for
money. The term short-term means generally a period upto
one year and near substitutes to money is used to denote any
financial asset which can be quickly converted into money with
minimum transaction cost.

Some of the important money market instruments are as

follows:

1. Call /Notice-Money Market

Call/Notice money is the money borrowed or lent on demand

for a very short period. When money is borrowed or lent for a
day, it is known as Call (Overnight) Money. Intervening
holidays and/or Sunday are excluded for this purpose. Thus
money, borrowed on a day and repaid on the next working
day, (irrespective of the number of intervening holidays) is
"Call Money". When money is borrowed or lent for more than a
day and up to 14 days, it is "Notice Money". No collateral
security is required to cover these transactions.
2. Inter-Bank Term Money

Inter-bank market for deposits of maturity beyond 14 days is

referred to as the term money market. The entry restrictions
are the same as those for Call/Notice Money except that, as
per existing regulations, the specified entities are not allowed
to lend beyond 14 days.

3. Treasury Bills.

Treasury Bills are short term (up to one year) borrowing

instruments of the union government. It is an IOU of the
Government. It is a promise by the Government to pay a
stated sum after expiry of the stated period from the date of
issue (14/91/182/364 days i.e. less than one year). They are
issued at a discount to the face value, and on maturity the face
value is paid to the holder. The rate of discount and the
corresponding issue price are determined at each auction.

4. Certificate of Deposits

Certificates of Deposit (CDs) is a negotiable money market

instrument nd issued in dematerialised form or as a Usance
Promissory Note, for funds deposited at a bank or other eligible
financial institution for a specified time period. Guidelines for
issue of CDs are presently governed by various directives
issued by the Reserve Bank of India, as amended from time to
time. CDs can be issued by (i) scheduled commercial banks
excluding Regional Rural Banks (RRBs) and Local Area Banks
(LABs); and (ii) select all-India Financial Institutions that have
been permitted by RBI to raise short-term resources within the
umbrella limit fixed by RBI. Banks have the freedom to issue
CDs depending on their requirements. An FI may issue CDs
within the overall umbrella limit fixed by RBI, i.e., issue of CD
together with other instruments viz., term money, term
deposits, commercial papers and intercorporate deposits should
not exceed 100 per cent of its net owned funds, as per the
latest audited balance sheet.
5. Commercial Paper

CP is a note in evidence of the debt obligation of the issuer. On

issuing commercial paper the debt obligation is transformed
into an instrument. CP is thus an unsecured promissory note
privately placed with investors at a discount rate to face value
determined by market forces. CP is freely negotiable by
endorsement and delivery. A company shall be eligible to issue
CP provided - (a) the tangible net worth of the company, as
per the latest audited balance sheet, is not less than Rs. 4
crore; (b) the working capital (fund-based) limit of the
company from the banking system is not less than Rs.4 crore
and (c) the borrowal account of the company is classified as a
Standard Asset by the financing bank/s. The minimum maturity
period of CP is 7 days. The minimum credit rating shall be P-2
of CRISIL or such equivalent rating by other agencies. (for
more details visit www.indianmba.com faculty column)

Capital Market Instruments

The capital market generally consists of the following long term

period i.e., more than one year period, financial instruments;
In the equity segment Equity shares, preference shares,
convertible preference shares, non-convertible preference
shares etc and in the debt segment debentures, zero coupon
bonds, deep discount bonds etc.

Hybrid Instruments

Hybrid instruments have both the features of equity and

debenture. This kind of instruments is called as hybrid
instruments. Examples are convertible debentures, warrants
etc.

Conclusion

In India money market is regulated by Reserve bank of India

(www.rbi.org.in) and Securities Exchange Board of India (SEBI)
[www.sebi.gov.in ] regulates capital market. Capital market
consists of primary market and secondary market. All Initial
Public Offerings comes under the primary market and all
secondary market transactions deals in secondary market.
Secondary market refers to a market where securities are
traded after being initially offered to the public in the primary
market and/or listed on the Stock Exchange. Secondary market
comprises of equity markets and the debt markets. In the
secondary market transactions BSE and NSE plays a great role
in exchange of capital market instruments.

2. Introduction of stock exchange

Stock markets refer to a market place where investors can buy

and sell stocks. The price at which each buying and selling
transaction takes is determined by the market forces (i.e.
demand and supply for a particular stock)

stock exchange is an entity that provides "trading" facilities for

stock brokers and traders to trade stocks, bonds, and other
securities. Stock exchanges also provide facilities for issue and
redemption of securities and other financial instruments, and
capital events including the payment of income and dividends.
Securities traded on a stock exchange include shares issued by
companies, unit trusts, derivatives, pooled investment products
and bonds.

To be able to trade a security on a certain stock exchange, it

must be listed there. Usually, there is a central location at least
for record keeping, but trade is increasingly less linked to such
a physical place, as modern markets are electronic networks,
which gives them advantages of increased speed and reduced
cost of transactions. Trade on an exchange is by members
only.

The initial offering of stocks and bonds to investors is by

definition done in the primary market and subsequent trading
is done in the secondary market. A stock exchange is often the
most important component of a stock market. Supply and
demand in stock markets is driven by various factors that, as in
all free markets, affect the price of stocks (see stock
valuation).
There is usually no compulsion to issue stock via the stock
exchange itself, nor must stock be subsequently traded on the
exchange. Such trading is said to be off exchange or over-the-
counter. This is the usual way that derivatives and bonds are
traded. Increasingly, stock exchanges are part of a global
market for securities.

3. History of stock exchange

Securities markets took centuries to develop. The idea of debt

dates back to the ancient world, as evidenced.There is little
consensus among scholars as to when corporate stock was first
traded. Some see the key event as the Dutch East India
Company's founding in 1602, while others point to earlier
developments. Economist Ulrike Malmendier of the University
of California at Berkeley argues that a share market existed as
far back in ancient Rome.

In the Roman Republic, which existed for centuries before the

Empire was founded, there were societas publicanorum,
organizations of contractors or leaseholders who performed
temple-building and other services for the government. One
such service was the feeding of geese on the Capitoline Hill as
a reward to the birds after their honking warned of a Gallic
invasion in 390 B.C. Participants in such organizations had
partes or shares, a concept mentioned various times by the
statesman and orator Cicero. In one speech, Cicero mentions
"shares that had a very high price at the time." Such evidence,
in Malmendier's view, suggests the instruments were tradable,
with fluctuating values based on an organization's success. The
societas declined into obscurity in the time of the emperors, as
most of their services were taken over by direct agents of the
state.

Tradable bonds as a commonly used type of security were a

more recent innovation, spearheaded by the Italian city-states
of the late medieval and early Renaissance periods.
In 1171, the authorities of the Republic of Venice, concerned
about their war-depleted treasury, drew a forced loan from the
citizenry. Such debt, known as prestiti, paid 5 percent interest
per year and had an indefinite maturity date. Initially regarded
with suspicion, it came to be seen as a valuable investment
that could be bought and sold. The bond market had begun.

From 1262 to 1379, Venice never missed an interest payment,

solidifying the credibility of the new instruments. Other Italian
city-states such as Florence and Genoa became bond issuers as
well, often as a means of paying for warfare. Bonds were
traded widely in Italy and beyond, a business facilitated by
bankers such as the Medicis.

War between Venice and Genoa resulted in suspension of

prestiti interest payments in the early 1380s, and when the
market was restored, it was at a lower interest rate. Venice's
bonds traded at steep discounts for decades thereafter. Other
blows to financial stability resulted from the Hundred Years
War, which caused monarchs of France and England to default
on debts to Italian banks, and the Black Death, which ravaged
much of Europe. Still, the idea of debt as a tradable investment
endured.

As with bonds, the concept of stock developed gradually. Some

scholars place its origins as far back as ancient Rome.
Partnership agreements dividing ownership into shares date
back at least to the 13th century, again with Italian city-states
in the vanguard. Such arrangements, however, typically
extended only to a handful of people and were of limited
duration, as with shipping partnerships that applied only to a
single sea voyage.

The forefront of commercial innovation eventually shifted from

Italy to northern Europe. The Hanseatic League, an alliance of
mercantile towns such as Bruges and Antwerp, operated
counting houses to expedite trade. The term "bourse," which
has become synonymous with "stock market," arose in Bruges,
either from a sign outside a trading centre showing one or a
few purses or because merchants gathered at the house of a
man named Van der Burse; nobody's quite sure.
By the late 1500s, British merchants were experimenting with
joint-stock companies intended to operate on an ongoing basis;
one such was the Muscovy Company, which sought to wrest
trade with Russia away from Hanseatic dominance. The next
big step was in Amsterdam. In 1602, the Dutch East India
Company was formed as a joint-stock company with shares
that were readily tradable. The stock market had begun.

A bond issued by the Dutch East India Company, dating from 7

November 1623, for the amount of 2,400 florins.

The Dutch East India Company, formed to build up the spice

trade, operated as a colonial ruler in what's now Indonesia and
beyond, a purview that included conducting military operations
against recalcitrant natives and competing colonial powers.
Control of the company was held tightly by its directors, with
ordinary shareholders not having much influence on
management or even access to the company's accounting
statements.

However, shareholders were rewarded well for their

investment. The company paid an average dividend of over 16
percent per year from 1602 to 1650. Financial innovation in
Amsterdam took many forms. In 1609, investors led by one
Isaac Le Maire formed history's first bear syndicate, but their
coordinated trading had only a modest impact in driving down
share prices, which tended to be robust throughout the 17th
century. By the 1620s, the company was expanding its
securities issuance with the first use of corporate bonds.

The Dutch West India Company was formed in 1621, bringing a

new issuer to the burgeoning securities market. Amsterdam's
growth as a financial center survived the tulip mania of the
1630s, in which contracts for the delivery of flower bulbs
soared wildly and then crashed. New techniques and
instruments proliferated for securities as well as commodities,
including early forms of options trading and margin trading.

Joseph de la Vega, also known as Joseph Penso de la Vega and

by other variations of his name, was an Amsterdam trader
from a Spanish Jewish family and a prolific writer as well as a
successful businessman in 17th-century Amsterdam. His 1688
book Confusion of Confusions explained the workings of the
city's stock market. It was the earliest book about stock
trading, taking the form of a dialogue between a merchant, a
shareholder and a philosopher, the book described a market
that was sophisticated but also prone to excesses, and de la
Vega offered advice to his readers on such topics as the
unpredictability of market shifts and the importance of patience
in investment.

The year that de la Vega published also brought an event that

helped spread financial techniques and talent from Amsterdam
to London. This was the "glorious revolution," in which Dutch
ruler William of Orange also ascended to England's throne.
William sought to modernize England's finances to pay for its
wars, and thus the kingdom's first government bonds were
issued in 1693 and the Bank of England was set up the
following year. Soon thereafter, English joint-stock companies
began going public.

NASDAQ was the first electronic stock exchange.

London's first stockbrokers, however, were barred from the old

commercial center known as the Royal Exchange, reportedly
because of their rude manners. Instead, the new trade was
conducted from coffee houses along Exchange Alley. By 1698,
a broker named John Castaing, operating out of Jonathan's
Coffee House, was posting regular lists of stock and commodity
prices. Those lists mark the beginning of the London Stock
Exchange.

One of history's greatest financial bubbles occurred in the next

few decades. At the centre of it were the South Sea Company,
set up in 1711 to conduct English trade with South America,
and the Mississippi Company, focused on commerce with
France's Louisiana colony and touted by transplanted Scottish
financier John Law, who was acting in effect as France's central
banker. Investors snapped up shares in both, and whatever
else was available. In 1720, at the height of the mania, there
was even an offering of "a company for carrying out an
undertaking of great advantage, but nobody to know what it
is."

By the end of that same year, share prices were collapsing, as

it became clear that expectations of imminent wealth from the
Americas were overblown. In London, Parliament passed the
Bubble Act, which stated that only royally chartered companies
could issue public shares. In Paris, Law was stripped of office
and fled the country. Stock trading was more limited and
subdued in subsequent decades. Yet the market survived, and
by the 1790s shares were being traded in the young United
States.

On February 8, 1971, NASDAQ, the world's first electronic

stock exchange, started its operations.

4. The role of stock exchanges

Stock exchanges have multiple roles in the economy. This may

include the following:

Raising capital for businesses

The Stock Exchange provide companies with the facility to raise

capital for expansion through selling shares to the investing
public.

Mobilizing savings for investment

When people draw their savings and invest in shares, it leads

to a more rational allocation of resources because funds, which
could have been consumed, or kept in idle deposits with banks,
are mobilized and redirected to promote business activity with
benefits for several economic sectors such as agriculture,
commerce and industry, resulting in stronger economic growth
and higher productivity levels of firms.
Facilitating company growth

Companies view acquisitions as an opportunity to expand

product lines, increase distribution channels, hedge against
volatility, increase its market share, or acquire other necessary
business assets. A takeover bid or a merger agreement
through the stock market is one of the simplest and most
common ways for a company to grow by acquisition or fusion.

Profit sharing

Both casual and professional stock investors, through dividends

and stock price increases that may result in capital gains, share
in the wealth of profitable businesses.

Corporate governance

By having a wide and varied scope of owners, companies

generally tend to improve management standards and
efficiency to satisfy the demands of these shareholders, and
the more stringent rules for public corporations imposed by
public stock exchanges and the government. Consequently, it
is alleged that public companies (companies that are owned by
shareholders who are members of the general public and trade
shares on public exchanges) tend to have better management
records than privately held companies (those companies where
shares are not publicly traded, often owned by the company
founders and/or their families and heirs, or otherwise by a
small group of investors).

Despite this claim, some well-documented cases are known

where it is alleged that there has been considerable slippage in
corporate governance on the part of some public companies.
The dot-com bubble in the late 1990's, and the subprime
mortgage crisis in 2007-08, are classical examples of corporate
mismanagement. Companies like Pets.com (2000), Enron
Corporation (2001), One.Tel (2001), Sunbeam (2001), Webvan
(2001), Adelphia (2002), MCI WorldCom (2002), Parmalat
(2003), American International Group (2008), Bear Stearns
(2008), Lehman Brothers (2008), General Motors (2009) and
Satyam Computer Services (2009) were among the most
widely scrutinized by the media.
However, when poor financial, ethical or managerial records
are known by the stock investors, the stock and the company
tend to lose value. In the stock exchanges, shareholders of
underperforming firms are often penalized by significant share
price decline, and they tend as well to dismiss incompetent
management teams.

Creating investment opportunities for small investors

As opposed to other businesses that require huge capital

outlay, investing in shares is open to both the large and small
stock investors because a person buys the number of shares
they can afford. Therefore the Stock Exchange provides the
opportunity for small investors to own shares of the same
companies as large investors.

Government capital-raising for development projects

Governments at various levels may decide to borrow money to

finance infrastructure projects such as sewage and water
treatment works or housing estates by selling another category
of securities known as bonds. These bonds can be raised
through the Stock Exchange whereby members of the public
buy them, thus loaning money to the government. The
issuance of such bonds can obviate the need, in the short term,
to directly tax citizens to finance development—though by
securing such bonds with the full faith and credit of the
government instead of with collateral, the government must
eventually tax citizens or otherwise raise additional funds to
make any regular coupon payments and refund the principal
when the bonds mature.

Barometer of the economy

At the stock exchange, share prices rise and fall depending,

largely, on market forces. Share prices tend to rise or remain
stable when companies and the economy in general show signs
of stability and growth. An economic recession, depression, or
financial crisis could eventually lead to a stock market crash.
Therefore the movement of share prices and in general of the
stock indexes can be an indicator of the general trend in the
economy

5. Major stock of Stock exchanges of India

» Bombay Stock Exchange

» National Stock Exchange

» Regional Stock Exchanges

» Ahmedabad

» Bangalore

» Bhubaneshwar

» Calcutta

» Cochin

» Coimbatore

» Delhi

» Guwahati

» Hyderabad

» Jaipur

» Ludhiana

» Madhya Pradesh

» Madras

» Magadh

» Mangalore

» Meerut
» OTC Exchange Of India

» Pune

» Saurashtra Kutch

» UttarPradesh

» Vadodara

6. Objectives of stock exchange

Capital Formation

One of the most important objectives of a stock exchange is

capital formation. This refers to the accumulation of vast
quantities of money necessary to start large ventures. Power
plants, automobile production facilities, computer chip
manufacturers and many other endeavors require tens or
hundreds of millions of dollars of investment before they can
produce any profit. Without corporate organization, which
accumulates capital (money) while dispersing ownership, many
of these projects would not be possible.

Connecting Traders

The stock exchange also facilitates trading. One of the

advantages of corporate organization is that stakeholders may
sell their interest to another party. At any one time, hundreds
or even thousands of individuals may wish to sell their shares
of stock, while as many investors may wish to purchase the
same security. Stock exchanges put in place the infrastructure
necessary to connect these buyers and sellers. Many stock
exchanges occupy physical buildings in which traders, brokers
and other agents of the system work. Other exchanges occupy
no centralized physical location and operate through
telecommunication and computer networks.
Security

The operators of stock exchanges, in cooperation with their

governments, have designed and implemented laws and
regulations determining how the system should function. These
rules are intended to protect the investor from unfair
advantages taken by people possessing special knowledge.
They also obligate people who have entered into contracts to
honor those contracts or face criminal prosecution. The goal of
regulation is to allow people who may not always trust each
other to do business with each other, because they trust the
system.

Some regulation is put in place to protect against unintended

consequences of an unregulated market. For example, the
"uptick rule" states that before a short contract (a "bet" that a
stock will decline) can be written on a security, the price must
increase, at least incrementally. This prevents a struggling
stock from being shorted, which can decrease confidence in its
strength and lead to more shorting and a further decline.

Economic Indicator

 Though not originally intended to function as such, stock

exchanges also work as instruments to quantify the state of an
economy. Even a casual observation of the general trends on
major stock exchanges can give some insight into the state of
a national or regional economy, or even the global economy.

7. NSE Milestones

November 1992Incorporation

April 1993Recognition as a stock exchange

May 1993Formulation of business plan

June 1994Wholesale Debt Market segment goes live

November 1994Capital Market (Equities) segment goes live

March 1995Establishment of Investor Grievance Cell

April 1995Establishment of NSCCL, the first Clearing

Corporation

June 1995Introduction of centralised insurance cover for all

trading members

July 1995Establishment of Investor Protection Fund

October 1995Became largest stock exchange in the country

April 1996Commencement of clearing and settlement by NSCCL

April 1996Launch of S&P CNX Nifty

June 1996Establishment of Settlement Guarantee Fund

November 1996Setting up of National Securities Depository

Limited, first depository in India, co-promoted by NSE

November 1996Best IT Usage award by Computer Society of

India

December 1996Commencement of trading/settlement in

dematerialised securities

December 1996Dataquest award for Top IT User

December 1996Launch of CNX Nifty Junior

February 1997Regional clearing facility goes live

November 1997Best IT Usage award by Computer Society of

India

May 1998Promotion of joint venture, India Index Services &

Products Limited (IISL)

May 1998Launch of NSE's Web-site: www.nse.co.in

July 1998Launch of NSE's Certification Programme in Financial
Market

August 1998CYBER CORPORATE OF THE YEAR 1998 award

February 1999Launch of Automated Lending and Borrowing

Mechanism

April 1999CHIP Web Award by CHIP magazine

October 1999Setting up of NSE.IT

January 2000Launch of NSE Research Initiative

February 2000Commencement of Internet Trading

June 2000Commencement of Derivatives Trading (Index

Futures)

September 2000Launch of 'Zero Coupon Yield Curve'

November 2000Launch of Broker Plaza by Dotex International,

a joint venture between NSE.IT Ltd. and i-flex Solutions Ltd.

December 2000Commencement of WAP trading

June 2001Commencement of trading in Index Options

July 2001Commencement of trading in Options on Individual

Securities

November 2001Commencement of trading in Futures on

Individual Securities

December 2001Launch of NSE VaR for Government Securities

January 2002Launch of Exchange Traded Funds (ETFs)

May 2002NSE wins the Wharton-Infosys Business

Transformation Award in the Organization-wide Transformation
category

October 2002Launch of NSE Government Securities Index

January 2003Commencement of trading in Retail Debt Market

June 2003Launch of Interest Rate Futures

August 2003Launch of Futures & options in CNXIT Index

June 2004Launch of STP Interoperability

August 2004Launch of NSE’s electronic interface for listed

companies

March 2005‘India Innovation Award’ by EMPI Business School,

New Delhi

June 2005Launch of Futures & options in BANK Nifty Index

December 2006'Derivative Exchange of the Year', by Asia Risk

magazine

January 2007Launch of NSE – CNBC TV 18 media centre

March 2007NSE, CRISIL announce launch of

IndiaBondWatch.com

June 2007NSE launches derivatives on Nifty Junior & CNX 100

October 2007NSE launches derivatives on Nifty Midcap 50

January 2008Introduction of Mini Nifty derivative contracts on

1st January 2008

March 2008Introduction of long term option contracts on S&P

CNX Nifty Index

April 2008Launch of India VIX

April 2008Launch of Securities Lending & Borrowing Scheme

August 2008Launch of Currency Derivatives

August 2009Launch of Interest Rate Futures

November 2009Launch of Mutual Fund Service System

December 2009Commencement of settlement of corporate
bonds

February 2010Launch of Currency Futures on additional

currency pairs

March 2010NSE- CME Group & NSE - SGX product cross listing
agreement

April 2010Financial Derivative Exchange of the Year Award' by

Asian Banker

July 19, 2010Commencement of trading of S&P CNX Nifty

Futures on CME

July 19, 2010Real Time dissemination of India VIX.

July 28, 2010LOI signed with London Stock Exchange Group

October 12, 2010Introduction of Call auction in Pre-open

session

October 28, 2010Introduction of European Style Stock Options

October 29, 2010Introduction of Currency Options on USD INR