The National Stock Exchange of India Limited (NSE) is India’s leading stock exchange, headquartered in Mumbai, Maharashtra. According to statistics maintained by the Futures Industry Association (FIA), a derivatives trade body, it will be the world’s largest derivatives exchange in 2021 by the number of contracts traded. According to World Federation of Exchanges (WFE) statistics for the calendar year 2021, the NSE is ranked fourth in the world in cash equities by the number of trades. It is owned by several major financial institutions, banks, and insurance companies.
The NSE was founded in 1992 as the country’s first dematerialized electronic exchange. The NSE was the first exchange in the country to offer a modern, fully automated screen-based electronic trading system that provided easy trading facilities to investors across the country. NSE’s Managing Director and Chief Executive Officer is Vikram Limaye.
As of August 2021, the National Stock Exchange had a total market capitalization of more than US$3.4 trillion, making it the world’s tenth-largest stock exchange. The NSE’s flagship index, the NIFTY 50, a 50-stock index, is widely used as a barometer of the Indian capital market by investors in India and worldwide. NSE launched the NIFTY 50 index in 1996. However, Vaidyanathan (2016) estimates that stock exchanges in India contribute only about 4% of the Indian economy/GDP.
Unlike in the United States, where large corporations account for nearly 70% of the country’s GDP, the corporate sector in India accounts for only 12–14 percent of the national GDP (as of October 2016). Only 7,400 of these are listed, with only 4000 trading on the stock exchanges of the BSE and NSE. As a result, stocks traded on the BSE and NSE account for only about 4% of the Indian economy, which derives the majority of its income from the so-called unorganized sector and household spending.
According to the Economic Times, as of April 2018, 60 million retail investors in India had invested their savings in stocks, either directly or through mutual funds. According to the Bimal Jalan Committee report, only 1.3 percent of India’s population invests in the stock market, compared to 27 percent in the US and 10 percent in China. NSE EMERGE is the NSE’s new initiative for small and medium-sized enterprises (SMEs) and startups in India. These companies can be listed on the NSE without the need for an initial public offering (IPO). This platform will assist SMEs and Startups in connecting with investors and raising funds. The 200th company was listed on the NSE’s SME platform in August 2019.
The equities segment is open for business every day of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance). The following are the market timings for the equities segment:
- Order entry & modification Open: 09:00 hrs
- Order entry & modification Close: 09:08 hrs
- with random closure in the last one minute. Pre-open order matching starts immediately after the close of pre-open order entry.
Regular trading session:
- Normal/Retail Debt/Limited Physical Market Open: 09.15 hrs
- Normal/Retail Debt/Limited Physical Market Close: 15:30 hrs.
- Aftermarket hours: 16:00 – 09:00 hrs
NSE’s trading systems are cutting-edge technology. It has a 99.99 percent uptime record and processes over a billion messages per day with a sub-millisecond response time. In the last 20 years, NSE has made enormous technological advances. When trading began in 1994, NSE technology could handle two orders per second. In 2001, this increased to 60 orders per second. Today, the NSE can handle 1,60,000 orders/messages per second, with an infinite ability to scale upon demand. The NSE has continuously worked to reduce the settlement cycle. Settlements have always gone smoothly. T+3/T+1 has been reduced to T+2/T+1 as the settlement cycle.
To offer MBA and BBA courses, NSE has collaborated with several universities, including Gokhale Institute of Politics and Economics (GIPE) in Pune, Bharati Vidyapeeth Deemed University (BVDU) in Pune, Guru Gobind Singh Indraprastha University in Delhi, Ravenshaw University in Cuttack, and Punjabi University in Patiala. The NSE has also provided mock market simulation software called NSE Learn to Trade (NLT) to students in order to help them develop investment, trading, and portfolio management skills. The simulation software is very similar to the software used by market professionals today, and it assists students in learning how to trade in the markets.
Under its Certification in Financial Markets (NCFM) programs, the NSE also conducts online examinations and awards certification. At the moment, certifications are available in 46 modules, covering various sectors of the financial and capital markets at both the beginner and advanced levels. The list of various modules is available on the NSE India official website. Furthermore, it has been offering a short-term course called NSE Certified Capital Market Professional since August 2009. (NCCMP). The NCCMP, or NSE Certified Capital Market Professional, is a 100-hour program that lasts 3–4 months and is taught at colleges. It includes theoretical and practical training in capital market subjects. The NCCMP curriculum includes topics such as equity markets, debt markets, derivatives, macroeconomics, technical analysis, and fundamental analysis. Successful candidates receive joint certification from the NSE and the relevant body.