NSE PROJECT WORK

GROUP MEMBERS
NISHA JOSHI21 MAYURI46

POOJA SHIVARKAR-

48

MANGESH JHA-

19

KAJAL BARI-

4

ARIF KHAN-

23

VARSHA -

47

CONTENTS NSE – A NEW IDEOLOGY OBJECTIVE MARKET SEGMENT TECHNOLY NSCCL IISL NSDL LISTING OF SECURITIES IN NSE BENEFITS OF LISTING SYSTEM ELIGIBILITY CRITERIA .

A Committee recommended the creation of a2nd stock exchange in Mumbai called the "National Stock Exchange".  NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. After the formation of the Securities Market regulator. the Securities and Exchange Board of India (SEBI). attention were drawn towards the inefficiencies of the bourses and the need was felt for better regulation. Subsequently it launched the Capital . discipline and accountability.INTRODUCTION  Capital market reforms in India have outstripped the process of liberalization in most other sectors of the economy.  Provide investors across the country a single. operated through a VSAT network. It started operations in June 1994. with trading on the Wholesale Debt Market Segment. screen based trading platform.

 Settlement risks have also been eliminated with NSE's innovative endeavors in the area of clearing and settlement. establishment of the clearing corporation (NSCCL). 6. it has also created an investors protection fund(IPF).  NSE aggressively pursue policies and practices within a public interest frame work. 5. electronic transfer of securities.   In order to take care of investors interest. 1.  It has also providing settlement guarantee for all trades executed on the Exchange. 2. that would help investors who have incurred financial loss due to default of brokers. setting up a settlement guarantee fund (SGF).NSE has deliver the services to the investors at the cheapest possible cost. 4. . dematerialization and 7. reduction of settlement cycle. automated trading system has helped to the computer terminals at different geographical locations in the country and subsequently to the personal computers in the homes of investors and even to mobile investors.  NSE is playing the role of a catalytic agent in evolving the best market practices keeping in mind the investors. 3. implementing on-line.  NSE's nationwide. real-time risk management systems.

OBJECTIVES .

 Enabling shorter settlement cycles and book entry settlements.  Ensuring equal access to investors all over the country through an appropriate communication network.  Providing a fair. .  Meeting international benchmarks and standards.  The broad objective for which the exchange was set up has made it to play a leading role in enlarging the scope of market reforms in securities market in India. efficient and transparent securities market using electronic trading system.OBJECTIVES OF NSE  Establishing a nationwide trading facility for all types of securities.

ORGANISATION STRUCTURE OF NSE .

OWNERSHIP &MANAGEMENT  NSE is owned by a set of leading financial institutions.  The Board deals with the broad policy issues.. comprising mostly of trading members. Committee on Settlement Issues (COSI)etc. the Executive Committees which include trading members.  The day-to-day management of the Exchange is delegated to the Managing Director and CEO who is supported by a team of professional staff. to receive inputs from the market participants and implement suggestions which are in the best interest of the investors and the market.  The ECs have constituted several committees. banks. set out rules and parameters to manage the day-to-day affairs of the Exchange. formed under the Articles of Association and the Rules of NSE for different market segments.  The Board of NSE comprises of senior executives from promoter institutions and eminent professionals. like Committee on Trade Related Issues (COTI). insurance companies and other financial intermediaries. .  It is managed by a team of professional managers and the trading rights are with trading members who offer their services to the investors.

Stock Futures. Index Options. Derivatives like Index Futures.. Corporate Debt. Commercial Paper. Stock Options. Central and State Government Securities. which makes it one of the few exchanges in the world providing trading facility for all types of securities on a single exchange. Exchange Traded Funds. Warrants. Mutual Funds units. Futures on Interest Rates etc.MARKET SEGMENTS & PRODUCTS NSE provides an electronic trading platform for of all types of securities for investors under one roof Equity. The Exchange provides trading in 3 different segments . T-Bills. Certificate of Deposits (CDs).

CDs etc. PSU Bonds. CPs. Corporate Debentures.g. Owing to the robust methodology of computation of these rates and its extensive use. This helps in valuation of sovereign securities across all maturities irrespective of its liquidity in the market. . FIMMDA-NSEMIBID/MIBOR) owing to the market need. This index provides a benchmark for portfolio management by various investment managers and gilt funds.  NSE launched various products (e. the ‘Zero Coupon Yield Curve’.Wholesale debt market (WDM)  Provides the trading platform for debt securities which includes State and Central Government securities. this product has become very popular among the market participants.  NSE started computing and disseminating the NSE Mumbai Inter-bank Bid Rate (MIBID) and NSE Mumbai Inter-Bank Offer Rate (MIBOR).  NSE also started the dissemination of its yet another product.  NSE constructed such an index the. ‘NSE Government Securities Index’. T-Bills.

This operates on a price/time priority basis. • . equity shares. warrants. risk management. trading systems & processes. clearing and settlement. are traded on this system. known as the National Exchange for Automated Trading (NEAT) system. debentures etc.  Various types of securities e.  NSE started trading in the equities segment on 3 November 1994 and within a short span of 1 year became the largest exchange in India.Capital market (CM) segment and Offers a fully automated screen based trading system. trading statistics etc are available here.g.  Information regarding listing of securities.

the futures and options segment of NSE has made a mark for itself globally. Stock Options. Index Options. Stock Futures and Futures on interest rates. In the Futures and Options segment. trading in Nifty and CNX IT index and 53 single stocks are available. Though only four years into its’ operations.The futures & options (F&O) segment. . NSE provides trading in derivatives instruments like Index Futures.

TECHNOLOGY .

. is a state of the art client server based application.  NSE stresses on innovation and sustained investment in technology.  Its trading system.  Information is stored in an in-memory database to achieve minimum response time and maximum system availability. called National Exchange for Automated Trading (NEAT).TECHNOLOGY  Providing the services at the cheapest possible cost.  NSE is the first in the world to use satellite communication technology.  NSE has been continuously undertaking capacity to effectively meet the requirements of increased users and associated trading loads. including the satellite earth station and the high-speed optical fiber link with its main site at Mumbai.  NSE has established a disaster back-up site at Chennai along with its entire infrastructure.  NSE has also put in place NIBIS (NSE's Internet Based Information System)for on-line real-time dissemination of trading information.  It believes that technology provides the competitive edge and ensure timeliness and satisfaction in customer service.

FAMILY OF NSE .

 It carries out the clearing and settlement in the equities and derivatives segments  Operates a Subsidiary General Ledger (SGL) for settling trades in government securities.Canara Bank.  It was the first to provide notation/settlement guarantee. Bank of India.NSCCL  National Securities Clearing Corporation Ltd. and  to operate a tight risk containment system. UTI Bank. IDBI Bank and Standard Chartered Bank for funds settlement  Introduced the facility of direct payout to clients’ account on both the depositories . ICICI Bank.  to provide counter-party risk guarantee. (NSCCL). IndusInd Bank.  It was set up to  to promote and maintain short and consistent settlement cycles. was incorporated in August 1995 and commenced clearing operations in April1996. HDFC Bank.  It has tied up with .

 It has a consulting and licensing agreement with Standard and Poor's (S&P). the world's leading provider of invest able equity indices.  It provides a broad range of products and professional index services. for cobranding equity indices.  It focuses upon the indeand CRISILx as a core product.  It maintains over 70 equity indices comprising broad-based benchmark indices.India Index Services and Products Limited (IISL)  A joint venture of NSE and Credit Rating Information Services of India Limited (CRISIL). sect oral indices and customized indices.  IISL pools the index development efforts of NSE into a coordinated whole. .  Many investment and risk management products based on IISL. was set up in May 1998 to provide indices and index services.

NSE joined hands with UTI and IDBI to set up the first depository in India called the "National Securities Depository Limited" (NSDL).  .NSDL Trading in a dematerialized environment. which involved lot of time and the risk of delay . through the seller's broker and buyer's broker. settlement of trades required moving the securities physically from the seller to the buyer. All these added to the costs and delays in settlement and restricted liquidity.  To obviate problems and to promote dematerialization of securities.  The depository system gained quick acceptance and in a very short span of time it was able to achieve the objective and was also able to get rid of the risks associated with fake/forged/stolen/bad paper.

 Provides consultancy services in the areas of data warehousing.  It provides the securities industry with technology that ensures transparency and efficiency in the trading.IT also offers an e-learning ortal. a Computer-To-Computer Link (CTCL) order routing system. an internet trading system and Promos.  Products launched are NEAT XS. with its overall goal of latest technology for optimum business use. professional broker’s back office system.NSE. internet and business continuity plans.IT  NSE.  NSE. dedicated to the finance sector.IT Limited. NEAT iXS. . clearing and risk management systems. was incorporated in October1999 to provide thrust to NSE’s technology edge.

NABARD. Canara Bank and IFFCO to promote the NCDEX.NCDEX  Provide a platform for market participants to trade in wide spectrum of commodity derivatives. .. PNB.  NSE joined hand with other financial institutions in India viz. ICICI Bank.  Currently NCDEX facilitates trading of 37 agro based commodities.LIC. CRISIL. 1 base metal and 2 precious metal.

. bonds and other securities require listing for providing liquidity to investors.  It also agrees to pay the listing fees.  Issuers who list their securities have to satisfy the corporate governance requirement framed by regulators. It provides liquidity to investors without compromising for capital and ensures effective monitoring.  Listing means formal admission of a security to the trading platform of the Exchange.LISTING OF SECURITIES The stocks. The issuer wishing to have trading privileges satisfies listing requirements in there Levant statutes and in the listing regulations of the Exchange.

Benefits of Listing on NSE  NSE provides a trading platform that extends across the country.  NSE's web-site www. .com provides a link to the web-sites of the companies that are listed on NSE.  Listed companies are provided with monthly trade statistics for the securities of the company listed on the Exchange. results in significant reduction in cost and time of issues.  NSE being the largest stock exchange in terms of trading volumes.  reduces scope for price manipulation or misuse.  The listing fee is nominal.  The facility of making initial public offers (IPOs).  NSE provides unparallel level of trade and post-trade information. so that visitors interested can visit that company's web-site. This in turn reduces the cost of trading to the investor. Listing on NSE enables issuers to reach and service investors across the country.nseindia.

the Securities and Exchange Board of India Act.. This ensure quality broking services which enables to build and sustain confidence in the Exchange's operations. . The trading members are admitted to the different segments of the Exchange subject to the provisions of the Securities Contracts(Regulation) Act. 1992. etc.MEMBERSHIP ELIGIBILITY CRITERIA The Exchange stresses on factors such as corporate structure. The standards stipulated by the Exchange for trading membership are substantially in excess of the minimum statutory requirements as also in comparison to those stipulated by other exchanges in India. issued there under and the bye laws. notifications.  capital adequacy.  track record. All trading members are registered with SEBI. guidelines. etc.  education. bank guarantees. Rules and Regulations of the Exchange. deposited by the member with the Exchange as part of the membership requirements. experience. the rules. circulars. 1956. The exposure and volume of transactions that can be undertaken by a trading member are linked to liquid assets in the form of cash.

THANKYOU .

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