National Stock Exchange of India

National Stock Exchange of India Limited is the leading stock exchange under the ownership of various groups of domestic and global financial institutions, public and privately owned entities, and individuals. It is located in Mumbai, Maharashtra

1. National Stock Exchange of India PRESENTED BY, IRSHAD P M.COM in INTERNATIONAL FINANCE FINANCIAL MARKET & INSTITUTIONS DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES UNIVERSITY OF CALICUT Submitted to, DR.APARNA SAJEEV ASSISTANT PROFESSER DEPARTMENT OF COMMERCE AND MANAGEMENT STUDIES UNIVERSITY OF CALICUT

2. Introduction

3. The national stock exchange of India was promoted by leading financial institution at the behest of government of India and was incorporated in November 1992 as a tax paying company. April 1993, it was recognized as a stock exchange under the securities contract(Regulation) Act, 1956. NSE commenced operation in the WDM in June 1994,The capital market segment of the NSE commenced operation in November 1994,while operation in the derivatives segment in June 2000 National Stock Exchange of India Ltd. (NSE) has emerged as the world's largest derivatives exchange in 2021 by number of contracts traded based on the statistics maintained by Futures Industry Association (FIA) 7 th rank in world by market capital NSE is ranked  fourth in the world in cash equities  by number of trades as per the statistics maintained by the World Federation of Exchanges (WFE) for 2021

4. Type Stock Exchange Location Mumbai, India Founded 1992 Owner National Stock Exchange of India Limited Currency INR No. of listings 1300+ Market Cap US$3.4 trillion(2021 august) Website www.nse-india.com

5. Who are the promoters of NSE? The National Stock Exchange was promoted in November 1992, as a limited company by insurance companies, commercial banks and other financial institutions. Besides, SBI Capital Markets Limited, Infrastructure Leasing and Financial Services Ltd and Stock Holding Corporation Ltd., were also part of the promoters of NSE. The NSE was incorporated with an equity capital of Rs. 25 crores . The International Securities Consultancy (ISC) of Hong Kong has helped in setting up of the NSE. Securities and Exchange Board of India  regulates all the trading activities of NSE.

6. , Corporate Structure of NSE Mr . Girish Chandra Chaturvedi Chairman & Public Interest Director, Mr . Ashishkumar Chauhan Managing Director & CEO Ms . Anuradha Rao Public Interest Director Mr. K Narasimha Murthy Public Interest Director,

7. Prof. S Sudarshan Public Interest Director Ms. Mona Bhide Public Interest Director, Mr. Veneet Nayar Shareholder Director, Mr. Bishnu Charan Patnaik Shareholder Director,

8. Features

9. Salient features of NSE Wide coverage: No fixed location for NSE: Confidential trading in NSE: Transparency of NSE: Effective matching of order in NSE: Buy order and Sell orders are effectively and quickly matched with the help of the trading software, i.e., buying and selling adjustments. The system also ensures best prices for securities thorough out India (both for buying and selling). The network system enables the trader to find a perfect match for his order or the system holds the order until a perfect match for the Buy or Sell order is found. 6. Borrowings made easy in NSE: One of the salient features of NSE is that for the debt instruments, the system helps by providing a perfect match with sensible interest rate and repayment period. This exposure is available throughout India for the sale of debt instruments.

10. Establishing a National wide trading facility for all type of securities. Ensuring equal access to investor all over the country through an appropriate communication network. Providing for a Fair, efficient and transparent securities market using electronic Trading system. Enabling shorter Settlement cycles. Meeting up with international benchmark and standard PURPOSE

11. November 1992 Incorporation April 1993 Recognition as a stock exchange October 1995 Became largest stock exchange in the country April 1996 Launch of S&P CNX Nifty November 1997 Best IT Usage award by Computer Society of India. May 1998 Launch of NSE's Web-site: www.nse.co.in Milestones

12. February 2000 Commencement of Internet Trading June 2000 Commencement of Derivatives Trading ( Inde Futures) January 2002 Launch of Exchange Traded Funds (ETFs) June 2007 NSE launches derivatives on Nifty Junior &CNX 100 August 2008 Launch of Currency Derivatives November 2009 Launch of Mutual Fund Service System February 2010 Launch of Currency Futures on additional currency pairs 2012 Launched the New Debt Segment (NDS) 2013 Commenced trading on NIFTY 50 (then known as CNX NIFTY) on the Osaka Exchange 2015-16 Renamed CNX NIFTY to NIFTY 50 2018 MoU with London Stock Exchange Group 2019 NSE launches new brand identity for NIFTY Indices 2021-22 NSE Indices launches Nifty India Digital Index NSE Data launches Fixed Income Analytics Platform ( FixedIn )

13. Indices

14. NIFTY indices are used as benchmarks for products traded on NSE An Index is used to give information about the price movements of products in the financial, commodities or any other markets. Financial indexes are constructed to measure price movements of stocks, bonds, T-bills and other forms of investments. Stock market indexes are meant to capture the overall behaviour of equity markets. A stock market index is created by selecting a group of stocks that are representative of the whole market or a specified sector or segment of the market. An Index is calculated with reference to a base period and a base index value. Broad Market Indices Sectoral Indices Thematic Indices Strategy Indices Fixed Income Indices Hybrid Indices Customised Indices

15. Stock market indexes are useful for a variety of reasons. Some of them are : They provide a historical comparison of returns on money invested in the stock market against other forms of investments such as gold or debt. They can be used as a standard against which to compare the performance of an equity fund. In It is a lead indicator of the performance of the overall economy or a sector of the economy Stock indexes reflect highly up to date information Modern financial applications such as Index Funds, Index Futures, Index Options play an important role in financial investments and risk management

16. Nifty 50 The Nifty 50 is the flagship index on the National Stock Exchange of India Ltd. (NSE). The Index tracks the behavior of a portfolio of blue-chip companies, the largest and most liquid Indian securities. It includes 50 of the all companies listed and/ or traded on the NSE, captures approximately 66% of its float-adjusted market capitalization and is a true reflection of the Indian stock market. The Nifty 50 covers major sectors of the Indian economy and offers investment managers exposure to the Indian market in one efficient portfolio. The Index has been trading since April 1996 and is well suited for benchmarking, index funds and index-based derivatives. The Nifty 50 is owned and managed by NSE Indices Limited (formerly known as India Index Services & Products Limited-IISL), India’s first specialized company focused on an index as a core product Nifty 50 is computed in four currencies namely Indian Rupee (INR), US Dollar (USD), Australian Dollar (AUD) and Canadian Dollar (CAD). All other broad market indices are computed in Indian Rupee (INR). The NIFTY 50 is computed  using the free-float market capitalisation weighted method  wherein the level of the Index reflects the total market value of all the stocks in the Index relative to the base period November 3, 1995.

17. The NIFTY 50 index is calculated using a process called the free-float market capitalization-weighted method. It reflects the total market value of all stocks in the index relative to a base period value (November 3, 1995). Market capitalization = Shares Outstanding * Current Price Free-float Market Capitalization = Market Cap * IWF Index Value = (Current Market Value/Base Market Capital) * 1000 Whenever the price of an individual stock changes, its weight in the index value also changes. The base market capital is INR 2.06 trillion. Given the current index value, one can easily calculate the current market value. Stocks in the NIFTY 50 capture approximately 65% of the float-adjusted market capitalization of the NSE, and the index is therefore considered a true reflection of the Indian stock market.

18. Note: The base market capital is INR 2.06 trillion

19. The NIFTY Next 50 Index represents 50 companies from NIFTY 100 after excluding the NIFTY 50 companies. The NIFTY Next 50 Index represents about 10% of the free float market capitalization of the stocks listed on NSE as on March 29, 2019. The total traded value for the last six months March 2019 of all index constituents is approximately 12.7% of the traded value of all stocks on NSE. Impact cost for NIFTY Next 50 for a portfolio size of Rs.25 lakhs is 0.04% for the month March 2019 Nifty next 50

20. It represents the top 500 companies based on full market capitalization from the eligible universe. The NIFTY 500 Index represents about 96.1% of the free float market capitalization of the stocks listed on NSE as on March 29, 2019. The total traded value for the last six months ending March 2019, of all Index constituents is approximately 96.5% of the traded value of all stocks on NSE. The NIFTY 500 companies are disaggregated into industry indices viz. NIFTY Industry Indices Nifty 500

21. Equity Futures and options Wholesale Debt Market Retail Debt Market Currency futures Mutual funds Stocks lending & borrowing Markets

22. Listing procedure An Issuer has to take various steps prior to making an application for listing its securities on the NSE. These steps are essential to ensure the compliance of certain requirements by the Issuer before listing its securities on the NSE. The various steps to be taken include: Approval of Memorandum and Articles of Association Approval of draft prospectus Submission of Application Listing conditions and requirements

23. An investor has the option of holding Government Securities in physical form or in book entry form with RBI permitted SGL constituent, commonly known as Constituent Subsidiary General Ledger (CSGL) account holders

24. Difference between NSE & BSE Global rank is 7 Total listed companies 1300+ Global rank is 11 Total listed companies around 6000 Market cap 3.05 trillion USD Market cap 2.22 trillion USD

25. NSE Certifications NSE conducts online examination and awards certification, under its programmes of NSE's Certification in Financial Markets (NCFM). Currently, certifications are available in 19 modules, covering different sectors of financial and capital markets. Branches of the NSE are located throughout India.

26. TOPIC DISCUSSED Introduction NSE and Facts Corporate Structure of NSE Purpose Milestones(1992-2022) Indices Market Segments Listing Procedure NSE Certifications Advantages COMPANIES LISTED IN NSE

27. References https://archives.nseindia.com/content/indices/Method_NIFTY_Equity_Indices.pdf [email protected] https://www.tradinghours.com/markets https://www.tradinghours.com/markets www.nseindia.com https://www.nseindia.com/structure-and-key-personnel/board-of-directors https://slidetodoc.com/stock-exchange-of-india-dr-s-ceciliya-assistant/ https://corporatefinanceinstitute.com/resources/wealth-management/nifty-50-index/ https://www.sebi.gov.in / www.Stockmarketadda.com