What is the 'National Stock Exchange of India Limited (NSE)'

The National Stock Exchange of India Limited (NSE) is India's largest financial market. Incorporated in 1992, the NSE has developed into a sophisticated, electronic market, which ranked fourth in the world by equity trading volume in 2015. Trading commenced in 1994 with the launch of the wholesale debt market and a cash market segment shortly thereafter.

Today, the exchange conducts transactions in the wholesale debt, equity and derivative markets. One of the more popular offerings is the NIFTY 50 Index, which tracks the largest assets in the Indian equity market. US investors can access the index with exchanged traded funds (ETF) like the iShares India 50 ETF, which is listed under the ticker symbol INDY.

BREAKING DOWN 'National Stock Exchange of India Limited (NSE)'

The National Stock Exchange of India Limited was the first exchange in India to provide modern, fully automated electronic trading. It was set up by a group of Indian financial institutions with the goal of bringing greater transparency to the Indian capital market. As of March 2016, the National Stock Exchange had accumulated $1.41 trillion in total market capitalization, making it the world's 12th-largest stock exchange. The flagship index, the NIFTY 50, represents about 63% of total market capitalization listed on the exchange.

The total traded value of stocks listed on the index makes up about 44% of the traded value of all stocks on the NSE for the last six months. The index itself covers 12 sectors of the Indian economy across 50 stocks. Besides the NIFTY 50 Index, the National Stock Exchange maintains market indices that track various market capitalizations, volatility, specific sectors, and factor strategies. 

The National Stock Exchange has been a pioneer in Indian financial markets, being the first electronic limit order book to trade derivatives and ETFs. The exchange supports more than 3,000 VSAT terminals, making the NSE the largest private wide-area network in the country. Ashok Chawla is the Chairman of the Board of Directors and Vikram Limaye is the Managing Director and CEO of the exchange. 

Benefits of Listing on the National Stock Exchange

The National Stock Exchange is a premier marketplace for companies preparing to list on a major exchange. The sheer volume of trading activity and application of automated systems promotes greater transparency in trade matching and the settlement process. This in itself can boost visibility in the market and lift investor confidence. Using cutting-edge technology also allows orders to be filled more efficiently, resulting in greater liquidity and accurate prices.

RELATED TERMS
  1. India ETF

    India ETFs track the performance of stocks, sectors and indexes ...
  2. Primary Exchange

    A primary exchange like the New York Stock Exchange facilitates ...
  3. Over-the-Counter Exchange of India ...

    The over-the-counter exchange of India (OTCEI) is an electronic ...
  4. Futures Exchange

    A futures exchange is a central marketplace, physical or electronic, ...
  5. Miami Stock Exchange

    The Miami Stock Exchange offers a full range of processing and ...
  6. Frankfurt Stock Exchange (FRA)

    Located in Frankfurt, Germany, the FRA is one of the largest ...
Related Articles
  1. Investing

    Bombay Stock Exchange CEO Ashish Chauhan on India Rising

    India's largest stock exchange is hitting its stride. We talk with CEO Ashish Chauhan in New York.
  2. Investing

    India Remains An Emerging Market Bright Spot

    Change has finally come to India. The election of a business-friendly reformer appears to be the spark that will send Indian equities higher.
  3. Investing

    Top 5 India ETFs for 2018

    For investing exposure to Indian markets, explore these top five India exchange-traded funds (ETFs).
  4. Investing

    Stock Exchanges Around The World

    We tell you about five of the most popular stock exchanges from around the globe.
  5. Investing

    India: An Emerging Market for the Long Term

    Investors looking to own a single emerging market for the long term may want to consider India.
  6. Insights

    India Quashes Apple’s Plan to Sell Used Phones (AAPL)

    Apple will have to find another way to make a dent in the Indian market.
  7. Investing

    How India Makes Money

    India currently has the ninth largest nominal GDP (and third largest in PPP) in the world.
  8. Small Business

    Modi Announces Initiative to Boost Indian Startups

    India announces tax-breaks and other initiatives to push the startup climate in India and draw potential funding investors.
  9. Financial Advisor

    Emerging Markets: Why India Continues to Impress

    You can make an argument that large emerging markets are no longer emerging, unless you're talking about India.
  10. Financial Advisor

    Indian Temp Workers are Basically Paying for Your Retirement

    H-1B workers in the U.S. pay social security taxes but see none of the benefits. The American government basically told India to just deal with it.
RELATED FAQS
  1. What are the rules behind the delisting of a stock?

    Find out the criteria for a company to remain listed on a stock exchange. Learn what actions would lead to a security being ... Read Answer >>
  2. How does inflation affect the exchange rate between two nations?

    Countries attempt to balance interest rates and inflation, but the interrelationship between the two is complex and can influence ... Read Answer >>
  3. Who uses bills of exchange?

    Find out who uses bills of exchange, why they are important in international trade and what happens when a bill is traded ... Read Answer >>
  4. What is the growth rate of the electronics sector?

    Read some projections about the growth rate of the electronics sector. Find out which products are primed to be responsible ... Read Answer >>
Trading Center