In the state of Maharashtra, NSE is the leading stock exchange in India (Share Market In India). The company is owned by some of the world’s leading financial institutions, banks, and insurance companies. Founded in 1992, the NSE was the first dematerialized electronic exchange to be established in India. Providing an electronic trading system that is fully automated and screen-based, the NSE was the first exchange in India to offer this level of trading to investors across the length and breadth of the country. Vikram Limaye is CEO of NSE and Managing Director.
National Stock Exchange is the world’s 10th largest stock exchange based on market capitalization, with more than US$3 trillion in May 2021. An important barometer of the Indian capital market is the NIFTY 50, an index of 50 stocks published by the NSE. Since 1996, the NIFTY 50 has been published. In reality, Vaidyanathan (2016) estimates that the stock exchanges only make up about 4 percent of India’s economy.
As of October 2016, India’s corporate sector accounts for 12-14% of its national GDP, compared to the United States where 70% of the GDP is derived from large companies. On the BSE and NSE stock exchanges alone, only 4000 of the 7,400 listed companies are traded. Thus, BSE and NSE stocks make up just 4% of the Indian economy. The vast majority of the country’s income comes from the so-called unorganized sector and from household expenditures.
According to a report by the Economic Times, as of April 2018, 6 crores (60 million) retail investors owned shares in India, either directly or through mutual funds. A Bimal Jalan Committee report from earlier this year estimated that just 1.3% of Indians invest in the stock market, whereas 27% of Americans and 10% of Chinese do.
History Of Share Market In India
Since 1993, the Indian stock market has been governed by the National Stock Exchange. As opposed to restricting trading memberships to a select group of brokers, NSE enabled anyone who met the necessary qualifications, experience, and financial requirements to trade.
It was a revolutionary move for NSE to separate ownership and management of its exchange under the regulation of SEBI. Stock price information previously only accessible by a few people can now be accessed from a remote location by a client in the same way. Electronic account settlements replaced paper-based settlements, and trade settlements were always on time. To make sure investors’ settlement guarantees will protect them from broker defaults, a robust risk management system had to be implemented.
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National Stock Exchange Founded
The NSE was founded at the behest of the government of India by a group of leading financial institutions. In accordance with the Pherwani committee’s recommendations, NSE was created with a diversified shareholding including both domestic and global investors.
A number of domestic investors are participating in the project, including the Life Insurance Corporation, State Bank of India, Industrial Finance Corporation of India, and Stock Holding Corporation of India. The following global investors are important to the region: Gagil FDI Limited, GS Strategic Investments Limited, SAIF II SE Investments Mauritius Limited, Aranda Investments (Mauritius) Pte Limited, and PI Opportunities Fund I.