National Stock Exchange of India

By Vikram 12 Comments 15 Dec 2018
National Stock Exchange of India

An Introduction

The National Stock Exchange (NSE) is the leading stock exchange in India and the fourth largest in the world by equity trading volume in 2015, according to World Federation of Exchanges (WFE).It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995, based on annual reports of SEBI. National Stock Exchange was the first exchange in India to provide modern, fully automated electronic trading. It was set up by a group of Indian financial institutions with the goal of bringing greater transparency to the Indian capital market.


NSE has a fully-integrated business model comprising our exchange listings, tradingservices, clearing and settlement services, indices, market data feeds, technology solutions and financial education offerings. NSE also oversees compliance by trading and clearing members and listed companies with the rules and regulations of the exchange.

NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology. NSE believes that the scale and breadth of its products and services, sustained leadership positions across multiple asset classes in India and globally enable it to be highly reactive to market demands and changes and deliver innovation in both trading and non-trading businesses to provide high-quality data and services to market participants and clients.
Mr. Ashok Chawla is the Chairman of the Board of Directors of NSE and Mr. Vikram Limaye is the Managing Director and CEO of NSE.

History

NSE was mainly set up in the early 1990s to bring in transparency in the markets. Instead of trading membership being confined to a group of brokers, NSE ensured that anyone who was qualified, experienced and met minimum financial requirements was allowed to trade. In this context, NSE was ahead of its times when it separated ownership and management in the exchange under SEBI’s supervision. The price information which could earlier be accessed only by a handful of people could now be seen by a client in a remote location with the same ease. The paper-based settlement was replaced by electronic depository-based accounts and settlement of trades was always done on time. One of the most critical changes was that a robust risk management system was set in place, so that settlement guarantees could protect investors against broker defaults.

NSE was set up by a group of leading Indian financial institutions at the behest of the government of India to bring transparency to the Indian capital market. Based on the recommendations laid out by the Pherwani committee, NSE has been established with a diversified shareholding comprising domestic and global investors.

NSE was also instrumental in creating the National Securities Depository Limited (NSDL) which allows investors to securely hold and transfer their shares and bonds electronically. It also allows investors to hold and trade in as few as one share or bond. This not only made holding financial instruments convenient but more importantly, eliminated the need for paper certificates and greatly reduced the incidents of forged or fake certificates and fraudulent transactions that had plagued the Indian stock market.

Market Capitalization

Market Capitalization

National Stock Exchange has a total market capitalization of more than US $2.27 trillion, making it the world’s 11th-largest stock exchange as of April 2018. NSE’s flagship index, the NIFTY 50, the 50 stock index is used extensively by investors in India and around the world as a barometer of the Indian capital markets. Nifty 50 index was launched in 1996 by the NSE. However, Vaidyanathan (2016) estimates that only about 4% of the Indian economy / GDP is actually derived from the stock exchanges in India.

Unlike countries like the United States where nearly 70% of the GDP is derived from larger companies and the corporate sector, the corporate sector in India accounts for only 12-14% of the national GDP (as of October 2016). Of these only 7,800 companies are listed of which only 4000 trade on the stock exchanges at BSE and NSE. Hence the stocks trading at the BSE and NSE account for only around 4% of the Indian economy, which derives most of its income related activity from the so-called unorganized sector and households.

Objectives


Objectives

The main objective behind NSE is to establish trading facility nationwide for all types of securities. It also ensures equal access to all investors in the country through the process of an appropriate telecommunication network. NSE was able to achieve its objectives within a very short span of time. NSE has national reach to major market segments like equity or capital markets, futures and options or derivatives market, wholesale debt market, mutual funds, initial public offerings and so on. There is also a concept of day trading which suits well for short term investments. But there are investors who think that this type of trading is quite risky.


Products

Equity & Equity Linked Products

  • Cash Market (Equities)
  • Indices
  • Mutual Funds

Exchange Traded Funds

  • Initial Public Offerings
  • Offer for Sale
  • Institutional Placement Program
  • Security Lending and Borrowing Scheme
  • Sovereign Gold Bonds Scheme

Derivatives

  • Equity Derivatives
  • Currency Derivatives
  • NSE Bond Futures

Debt

  • Debt Market
  • Corporate Bonds
  • Electronic Debt Bidding Platform (NSE-EBP)

Awards & Recognition


Awards & Recognition

  • 2016 : CII- Exim Bank Prize for Business Excellence
  • 2016 : Global Architecture Excellence Awards
  • 2016 : New Service Offering Initiative
  • 2015 : Golden Peacock Innovative Product / Service Award
  • 2015 : The Asian Banker Achievement Awards
  • 2015 : Stock Exchange of the Year
  • 2015 : FOW Awards for Asia – Best New Technology Product – Market Surveillance
  • 2014 : Futures and Options World Award for Indian Exchange of the Year
  • 2014 : Global Finance – Best Derivatives Providers Award 2014 for exchange performance
  • 2014 : CII-Exim Bank Prize for Business Excellence
  • 2013 : Capital Finance International – Best Stock Exchange Award, India
  • 2010 : The Asian Banker Achievement Awards for Markets and Exchanges
    Financial Derivative Exchange of the Year Award.

Listed Companies on NSE

Here are the List of Top 100 Companies listed on NSE on the basis of Market Capitalization –


Rank Company Name Industry
1 ABB India Ltd. INDUSTRIAL MANUFACTURING
2 ACC Ltd. CEMENT & CEMENT PRODUCTS
3 Adani Ports and Special Economic Zone Ltd. SERVICES
4 Aditya Birla Capital Ltd. FINANCIAL SERVICES
5 Ambuja Cements Ltd. CEMENT & CEMENT PRODUCTS
6 Ashok Leyland Ltd. AUTOMOBILE
7 Asian Paints Ltd. CONSUMER GOODS
8 Aurobindo Pharma Ltd. PHARMA
9 Avenue Supermarts Ltd. CONSUMER GOODS
10 Axis Bank Ltd. FINANCIAL SERVICES
11 Bajaj Auto Ltd. AUTOMOBILE
12 Bajaj Finance Ltd. FINANCIAL SERVICES
13 Bajaj Finserv Ltd. FINANCIAL SERVICES
14 Bank of Baroda FINANCIAL SERVICES
15 Bharat Electronics Ltd. INDUSTRIAL MANUFACTURING
16 Bharat Heavy Electricals Ltd. INDUSTRIAL MANUFACTURING
17 Bharat Petroleum Corporation Ltd. ENERGY
18 Bharti Airtel Ltd. TELECOM
19 Bharti Infratel Ltd. TELECOM
20 Bosch Ltd. AUTOMOBILE
21 Britannia Industries Ltd. CONSUMER GOODS
22 Cadila Healthcare Ltd. PHARMA
23 Cipla Ltd. PHARMA
24 Coal India Ltd. METALS
25 Colgate Palmolive (India) Ltd. CONSUMER GOODS
26 Container Corporation of India Ltd. SERVICES
27 Cummins India Ltd. INDUSTRIAL MANUFACTURING
28 DLF Ltd. CONSTRUCTION
29 Dabur India Ltd. CONSUMER GOODS
30 Dr. Reddy’s Laboratories Ltd. PHARMA
31 Eicher Motors Ltd. AUTOMOBILE
32 Emami Ltd. CONSUMER GOODS
33 GAIL (India) Ltd. ENERGY
34 General Insurance Corporation of India FINANCIAL SERVICES
35 Godrej Consumer Products Ltd. CONSUMER GOODS
36 Grasim Industries Ltd. CEMENT & CEMENT PRODUCTS
37 HCL Technologies Ltd. IT
38 HDFC Bank Ltd. FINANCIAL SERVICES
39 Havells India Ltd. CONSUMER GOODS
40 Hero MotoCorp Ltd. AUTOMOBILE
41 Hindalco Industries Ltd. METALS
42 Hindustan Petroleum Corporation Ltd. ENERGY
43 Hindustan Unilever Ltd. CONSUMER GOODS
44 Hindustan Zinc Ltd. METALS
45 Housing Development Finance Corporation Ltd. FINANCIAL SERVICES
46 I T C Ltd. CONSUMER GOODS
47 ICICI Bank Ltd. FINANCIAL SERVICES
48 ICICI Prudential Life Insurance Company Ltd. FINANCIAL SERVICES
49 Idea Cellular Ltd. TELECOM
50 Indiabulls Housing Finance Ltd. FINANCIAL SERVICES
51 Indian Oil Corporation Ltd. ENERGY
52 IndusInd Bank Ltd. FINANCIAL SERVICES
53 Infosys Ltd. IT
54 InterGlobe Aviation Ltd. SERVICES
55 JSW Steel Ltd. METALS
56 Kotak Mahindra Bank Ltd. FINANCIAL SERVICES
57 L&T Finance Holdings Ltd. FINANCIAL SERVICES
58 LIC Housing Finance Ltd. FINANCIAL SERVICES
59 Larsen & Toubro Ltd. CONSTRUCTION
60 Lupin Ltd. PHARMA
61 MRF Ltd. AUTOMOBILE
62 Mahindra & Mahindra Ltd. AUTOMOBILE
63 Marico Ltd. CONSUMER GOODS
64 Maruti Suzuki India Ltd. AUTOMOBILE
65 Motherson Sumi Systems Ltd. AUTOMOBILE
66 NHPC Ltd. ENERGY
67 NMDC Ltd. METALS
68 NTPC Ltd. ENERGY
69 Oil & Natural Gas Corporation Ltd. ENERGY
70 Oil India Ltd. ENERGY
71 Oracle Financial Services Software Ltd. IT
72 Petronet LNG Ltd. ENERGY
73 Pidilite Industries Ltd. CHEMICALS
74 Piramal Enterprises Ltd. PHARMA
75 Power Finance Corporation Ltd. FINANCIAL SERVICES
76 Power Grid Corporation of India Ltd. ENERGY
77 Procter & Gamble Hygiene & Health Care Ltd. CONSUMER GOODS
78 Punjab National Bank FINANCIAL SERVICES
79 Reliance Industries Ltd. ENERGY
80 Rural Electrification Corporation Ltd. FINANCIAL SERVICES
81 SBI Life Insurance Company Ltd. FINANCIAL SERVICES
82 Shree Cement Ltd. CEMENT & CEMENT PRODUCTS
83 Shriram Transport Finance Co. Ltd. FINANCIAL SERVICES
84 Siemens Ltd. INDUSTRIAL MANUFACTURING
85 State Bank of India FINANCIAL SERVICES
86 Steel Authority of India Ltd. METALS
87 Sun Pharmaceutical Industries Ltd. PHARMA
88 Sun TV Network Ltd. MEDIA & ENTERTAINMENT
89 Tata Consultancy Services Ltd. IT
90 Tata Motors Ltd DVR AUTOMOBILE
91 Tata Motors Ltd. AUTOMOBILE
92 Tata Steel Ltd. METALS
93 Tech Mahindra Ltd. IT
94 Titan Company Ltd. CONSUMER GOODS
95 UPL Ltd. FERTILISERS & PESTICIDES
96 UltraTech Cement Ltd. CEMENT & CEMENT PRODUCTS
97 United Spirits Ltd. CONSUMER GOODS
98 Vedanta Ltd. METALS
99 Wipro Ltd. IT
100 Yes Bank Ltd. FINANCIAL SERVICES
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