National Stock Exchange A+ A-

National Stock Exchange of India (NSE) is India's largest Stock Exchange & World's
third largest Stock Exchange in terms of transactions. Located in Mumbai, NSE was
promoted by leading Financial Institutions at the behest of the Government of India, and
was incorporated in November 1992 as a tax-paying company. In April 1993, NSE was
recognized as a Stock exchange under the Securities Contracts (Regulation) Act-1956.
NSE commenced operations in the Wholesale Debt Market (WDM) segment in June
1994. Capital Market (Equities) segment of the NSE commenced operations in November
1994, while operations in the Derivatives segment commenced in June 2000. NSE has
played a catalytic role in reforming Indian securities market in terms of microstructure,
market practices and trading volumes. NSE has set up its trading system as a nation-
wide, fully automated screen based trading system. It has written for itself the mandate to
create World-class Stock Exchange and use it as an instrument of change for the industry
as a whole through competitive pressure. NSE is set up on a demutualised model wherein
the ownership, management and trading rights are in the hands of three different sets of
people. This has completely eliminated any conflict of interest.

NSE was set up with the objectives of:

• Establishing nationwide trading facility for all types of securities

• Ensuring equal access to investors all over the country through an appropriate
telecommunication network
• Providing fair, efficient & transparent securities market using electronic trading
system
• Enabling shorter settlement cycles and book entry settlements
• Meeting International benchmarks and standards

Within a very short span of time, NSE has been able to achieve its objectives for which it
was set up. Indian Capital Markets are a far cry from what they were 12 years back in
terms of market practices, infrastructure, technology, risk management, clearing and
settlement and investor service. To ensure continuity of business, NSE has built a full
fledged BCP site operational for last 7 years.

NSE's markets

NSE provides a fully automated screen-based trading system with national reach in the
following major market segments:-

• Equity OR Capital Markets {NSE's market share is over 65%}

• Futures & Options OR Derivatives Market {NSE's market share over 99.5%}
• Wholesale Debt Market (WDM)
• Mutual Funds (MF)
• Initial Public Offerings (IPO)