National Stock Exchange - NSE

1. NATIONAL STOCK EXCHANGE
BY:-
Mayur J. Jaguawala
16MB07
To:-
Prof. Satya Ranjan Mishra
Gujarat National Law University

2.  In November 1992 on the recommendation of
the High Powered Study Group On
Establishment of New stock exchange Report
to the Govt of India paved the way for the
promotion of National Stock Exchange by
Leading financial institution to provide access
to investor from all across the country on equal
footing.

3.  The National Stock Exchange was first formed in
1992 as a tax-paying company, a first for stock
exchanges in India. The NSE moved into the
wholesale debt market and the capital market in
1994, and the derivatives market in 2000. NSE also
engages in Internet trading, exchange traded funds
(ETF) and started India's first volatility index in
2008. The NSE was also the first India exchange to
begin current and interest rate futures exchanges.

4.  IDBI LTD
 IFCI LTD
 LIC LTD
 SBI
 ICICI BANK LTD
 IL & FC TRUST COMPANY LTD
 SHCIL LTD
 SBI CAPITAL MARKET LTD

5.  BANK OF BARODA
 CANARA BANK
 GENERAL INSURANCE CORPORATION OF
INDIA
 NATIONAL INSURANCE CORPORATION OF
INDIA
 THE NEW INDIAASSURANCE COMPANY LTD
 THE ORIENTAL INSURANCE COMPANY LTD
 UNITED INDIA INSURANCE COMPANY LTD
 PANJAB NATIONAL BANK

6.  ORIENTAL BANK OF COMMERCE
 INDIAN BANK
 UNION BANK OF INDIA
 INFRACTURE DEVELOPMENT FINANCE
COMPANY LTD.

7.  Equity
 Futures and Options
 Retail Debt Market
 Wholesale Debt Market
 Currency futures
 Mutual Fund

8.  EX: Seeds 20,000 Rs. Price on 1st April
 Expected rise at the end of May is 22000
 By paying 5000 Rs. Premium amount he book
50 tons of cotton
 The last date of exercises his right is 31st may
 On 25th may price rises to 23000 per tone
 Still he can purchase at 20000rs.

9. Price on date of exercise of the right Rs 23000
Less: purchase price Rs (20000)
Profit per ton
3000
Profit of 50 ton 50 * 3000 =
1,50,000
Less Premium paid
(5000)
Net Profit
1,45,000
 Earning huge amount of profit by investing small amount
of risk

10.  Cotton 5000rs/kg
 Mr A expects that price will fall on 30th April
 He purchase the put option from B by paying him
1000 .
 On 20th April price will fall to 4000 and future fall is
not expected
 A decide to exercise his of sell ( put option ).
 He declare the sale of 20 kg at 5000rs.

11. S p Per Bale 5000RS.
Total of 20 kg = 20*5000 = 1,00,000
Less Price on the day
of exercise the Right is 4000* 20 = (80000)
Profit
20000
Less Premium
(1000)
Net Profit
19000
Calculation of gain of A

12.  National Securities Clearing Corporation
 NSE InfoTech Services Limited
 NSE.IT
 National Security Depository Limited
 Dot Ex International Ltd.
 India Index Services and Products Ltd.

13.  Establishing nationwide trading facilities for all types of
securities.
 Ensuring equal access to investors all-over the country
through an appropriate communication network.
 Meeting international benchmarks and standards.
 Enabling shorter settlement cycles and book entry
settlements.

15.  Being the first national, anonymous, electronic limit
order book (LOB) exchange to trade securities in India.
Since the success of the NSE, existent market and new
market structures have followed the "NSE" model.
 Setting up the first clearing corporation "National
Securities Clearing Corporation Ltd." in India. NSCCL
was a landmark in providing innovation on all spot
equity market (and later, derivatives market) trades in
India.

16.  Co-promoting and setting up of National Securities
Depository Limited, first depository in India.
 Setting up of S&P CNX Nifty.
 NSE pioneered commencement of Internet Trading in
February 2000, which led to the wide popularization of
the NSE in the broker community

17.  Being the first and the only exchange to trade GOLD
ETFs (exchange traded funds) in India.
 NSE has also launched the NSE-CNBC-TV18 media
center in association with CNBC-TV18.
 NSE.IT Limited, setup in 1999 , is a 100% subsidiary
of the National Stock Exchange of India. A Vertical
Specialist Enterprise, NSE.IT offers end-to-end
Information Technology (IT) products, solutions and
services.

18.  Trading members in the capital market segment are
connected to the central computer in Mumbai though a
satellite link up, using VSATs.
 The identity of trading member is not revealed to others
when someone places order or when his pending orders
are displayed. Hence, large number of orders can be
placed on the NSE.

19.  A premier marketplace
 Visibility
 Largest exchange
 Unprecedented reach
 Transaction speed
 Nominal listing fees

20. STOCK Total
no. of
shares
Shares
held by
promote
rs
Shares
available
for
trading
Price of
share
Total
market
cap.
Free
float
market
cap.
A 1000 200 800 100 100000 80000
B 2000 1000 1000 200 400000 200000
How to calculate NSE Nifty
Free float market capitalization