How consumers use technology and the impacts on their lives
CURRENT SCENARIO OF NSE
1. Current Scenario of National
Stock Exchange
Current Scenario of National
Stock Exchange
2. Stock
Exchange An act of giving
one thing and
receiving other.
The goods kept on
the promises of a
business or where
houses are available
for sales and
distribution.
3. A place where securities are brought and
sold is known as stock exchange.
5. TYPE STOCK EXCHNGE
LOCATION MUMBAI, INDIA
FOUNDED 1992
OWNER NATIONAL STOCK EXCHANGE OF INDIA
LTD.
CURRENCY INDIAN RUPEE ( ₹ )
INDICES S&P CNX NIFTY
CNX NIFTY JUNIOR
S&P CNX 500
WEBSITE www.nseindia.com
MANAGING DIRECTOR CHITRA RAMKRISHNAN
6. She is CEO as well as MD of National
stock Exchange.
Chitra Ramkrishna
is the first woman
managing director
and chief executive
officer of the National
Stock Exchange
(NSE), an institution
founded in the early
1990s to reform the
capital market in
India, and now
ranking as the world's
largest exchange in
cash market trades
and as one of the top
three exchanges in
index and stock
derivatives.
8. HISTORY
At present there are 24 stock exchanges in the country, 21 of
them being regional ones with allotted areas. Two others set
up in the reform era, viz., the National Stock Exchange (NSE)
and Over the Counter Exchange of India (OTCEI), have
mandate to have nation-wise trading.
The Stock Exchanges are being administered by their
governing boards and executive chiefs. Policies relating to
their regulation and control are laid down by the Ministry of
Finance. Government also Constituted Securities and
Exchange Board of India (SEBI) in April 1988 for orderly
development and regulation of securities industry and stock
exchanges.
9. REGULATORY AUTHORITY
Regulatory authority is the one which is under the
government surveillance.
A few stock exchanges companies follow the rules
which are laid down by the government of India.
1) SEBI ( securities and exchange Board of India)
2) RBI ( Reserve Bank Of India)
10. SEBI
The Securities and Exchange Board of India (SEBI)
is the regulatory authority established under the
SEBI Act 1992 and is the principal regulator for
Stock Exchanges in India.
SEBI protects the interests of investors in securities and
promotes the development of securities market.
The board helps in making registration and regulate
the functioning.
SEBI conducts inspection and thus prohibits fraudulent
practices.
11. RBI
RBI is the appex bank of India.
RBI is also known as banker’s banks.
Maintains price stability.
Provides cost effective banking services to the public.
12. Role Of Stock Exchange
Raising capital for businesses
Mobilizing savings for investment
Facilitating company growth
Profit sharing
Creating investment opportunities for small investors
Government capital-raising for development projects
Barometer of the economy
13. Market Segments of NSE
NSEI trades in the following two segments:
1. Whole Sale Debt Market Segment:
This segment refers to the trading platform for a wide range of
fixed income securities like central government securities, bonds
issued by public sector undertakings, zero coupon bonds,
treasury bills, commercial papers, certificates of deposit, mutual
funds, corporate debentures etc.
2. Capital Market System:
This segment of NSEI provides a platform for transparent and
fair trading of equity, preference shares, debentures, exchange
traded funds as well as retail Government securities.
14. Markets Of NSE
Equities :-
Equities
Indices
Mutual Funds
Initial Public Offerings
Security Lending and Borrowing Scheme
16. Groups Of NSE
National Securities Clearing Corporation Limited
(NSCCL) 1995
NSE InfoTech Services Limited (NSETECH)
India Index Services & Products Ltd. (IISL)
1998
DotEx International. Ltd. (DotEx)
17. ASSOCIATE / AFFILIATE COMPANIES
National Securities Depository Ltd. (NSDL)
National Commodity & Derivatives Exchange Ltd.
(NCDEX)
Power Exchange India Limited (PXIL)
18. Objectives Of NSE
The important objectives of the NSE are given below:
(i) To provide a fair, transparent and efficient securities
market to investors using electronic trading system.
(ii) To establish nationwide trading facility for equities and
debt instruments.
(iii) To ensure equal access to investors all over the
country through an appropriate communication network.
(iv) To improve the standard of securities market to
international level.
19. The National Stock Exchange of India is
managed by Board of Directors. The Board to
an Executive Committee, which includes
representatives from trading members, public
and the management, delegate’s decision
relating to market operations.
Besides the exchange
operates various
committees to advise it
on areas such as good
market practices,
settlement procedures,
risk containment system
etc. Industry
professionals, trading
members and exchange
staffs are members in
these committees. The
day-to-day management
of the exchange is
delegated to the
Managing Director who
is supported by a team
of professional staff.
ORGANIZATION AND MANAGEMENT OF
NSE
21. CNX stands for CRISIL NSE INDICES.
CNX ensure common branding of indices, to reflect
the identities of both promoters i.e. NSE and CRISIL.
Thus, C stands for CRISIL, N stands for NSE, X
stands for EXCHANGE or INDEX.
The S&P prefix belongs to the US-based standard
and poor’s Financial Information Services.
22. The formula to calculate the Sensex is as
follows:
(Sum of Free Float Market Capitalization /
Base Market Capital ) x 100
SENSEX = FREE FLOAT MARKET
CAPITALIZATION
------------------------------------------- x 100
BASE MARKET CAPITAL
23. NIFTY CALCULATION
Just like the Sensex which was introduced by the
Bombay stock exchange, Nifty is a major stock index in
India introduced by the National stock exchange.
Nifty is calculated using the same methodology adopted
by the BSE in calculating the Sensex – but with three
differences. They are:
The base year is taken as 1995.
The base value is set to 1000.
Nifty is calculated on 50 stocks actively traded in the
NSE.
50 top stocks are selected from 24 sectors.
