According to data from the National Stock Exchange of India Ltd. (NSE) (as of June 2023), Uttar Pradesh (UP), the state with the largest population in India, has surpassed Maharashtra as the state with the highest new investor registrations for stock market investments. In this article, you can learn more about the National Stock Exchange or NSE, its functions and other details for the IAS exam economy segment.
National Stock Exchange of India
Image source: www.nseindia.com
The largest financial market in India and the fourth largest market in the world by trading volume is the National Stock Exchange of India Limited (NSE).
- To increase openness in the Indian equities markets, the National Stock Exchange was founded in 1992.
- It was incorporated in 1992.
- NSE was recognised as a stock exchange by SEBI in 1993.
- It commenced operations in 1994.
- It was the first exchange in India to offer contemporary, fully automated electronic trading (in 1994).
- The National Stock Exchange of India Limited (NSE), which has its headquarters in Mumbai, carries out trades in the wholesale debt, stock, and derivative markets.
- It permits overseas businesses seeking to raise capital in India to conduct fresh listings, initial public offerings (IPOs), debt issuances, and the issuance of Indian Depository Receipts (IDRs).
- NSE launched the Nifty 50 index in 1996. Know more about the Nifty 50 index in the link.
- NSE offers products in three categories as follows:
- Equity and equity-linked products available for trading in the cash market include stocks, IDRs, Exchange Traded Funds, units of closed-ended mutual fund schemes, etc.Â
- Fixed income securities and debt products such as Negotiated Trade Reporting in Government securities, Corporate Bonds, Sovereign Gold Bonds, etc.
- Under the Derivatives segment, NSE offers derivative contracts on Equity, Indices, Currency, Interest Rates and Commodities.
NSE Purpose:
Committed to improve the financial well-being of people.
NSE Vision:
To continue to be a leader, facilitate the financial well-being of people.
NSE Values:
NSE is committed to core values – Integrity, Customer Focused Culture, Trust, Respect and Care for the Individual, Passion for Excellence, Teamwork.
What are Equity Shares?
An equity share, normally known as the ordinary share is a part ownership where each member is a fractional owner and initiates the maximum entrepreneurial liability related to a trading concern. These types of shareholders in any organization possess the right to vote.
- Equity share capital remains with the company. It is given back only when the company is closed.
- Equity shareholders possess voting rights and select the company’s management.
- The dividend rate on the equity capital relies upon the obtainability of the surfeit capital. However, there is no fixed rate of dividend on the equity capital.
NSE in the News
- Through April 2023, Uttar Pradesh dethroned Maharashtra after three months at the top. In April, there were 126,000 new investor registrations in UP, more than in Maharashtra (118,000), followed by Rajasthan, West Bengal, and Madhya Pradesh.
- According to NSE data, Maharashtra has seen a steady decline in registrations since October 2021, with the exception of a slight gain in the second half of last year. In April, there were 118,000 new registrations, a decrease of 22% from the previous month and a rise of 43.5% from the year before.
National Stock Exchange of India Limited (NSE) [UPSC Notes]:- Download PDF Here
| Related Links | |||
| Major Stock Exchanges | Difference Between NSE and BSE | ||
| Securities and Exchange Board of India | Bombay Stock Exchange (BSE) | ||
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