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National Stock Exchange: Presented by Benson Berlin Jinshy Pranav Punya

The document discusses the National Stock Exchange of India (NSE). It provides a brief history of the NSE, describing how it was established in 1992 after a securities scam to provide equal access to investors across India. It outlines the NSE's structure and functions, including its board, management, trading services, indices, and 11-step settlement process. The NSE is the leading stock exchange in India and second largest in the world by equity trades. It pioneered electronic trading and ensures reliability through technology investments.

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pranav sharma
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389 views14 pages

National Stock Exchange: Presented by Benson Berlin Jinshy Pranav Punya

The document discusses the National Stock Exchange of India (NSE). It provides a brief history of the NSE, describing how it was established in 1992 after a securities scam to provide equal access to investors across India. It outlines the NSE's structure and functions, including its board, management, trading services, indices, and 11-step settlement process. The NSE is the leading stock exchange in India and second largest in the world by equity trades. It pioneered electronic trading and ensures reliability through technology investments.

Uploaded by

pranav sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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NATIONAL STOCK EXCHANGE

PRESENTED BY
BENSON
BERLIN
JINSHY
PRANAV
PUNYA
INTRODUCTION
National Stock Exchange Limited is the leading stock exchange in
India.
Second largest in the world by numbers of trades in equity shares by
world federation of exchange reports.
Has a fully integrated business model comprising exchange listing,
trading services, indices, technology solutions, clearing and
settlement service.
Act as a pioneer in technology and ensures reliability and
performance of its system through a culture of innovation and
investment in technology.
HISTORY OF NSE
 After the outbreak of 1992, security scam in which BSE member, Harshad
Mehta, was exposed manipulating the market, the government of India
decided to promote establishing NSE based on recommendations made by
High Powered Study Group on establishment of New Stock Exchanges. The
immediate aim was to provide equal access to investors from all across the
nation and make participating in stock market easier.
 In November 1992, NSE was established as a tax-paying company with key
investors including LIC, SBI, IFCI Ltd, IDFC Ltd and Stock Holding
Corporation of India Ltd.
 NSE was the first stock exchange in India were ownership, management and
trading were handled by three independent set of people. While the
ownership is with various financial institutions and banks, the management is
handled by independent professionals who are forbidden from directly or
indirectly trading on the exchange.
HISTORY OF NSE
 2018- Launches E-GSEC platform for retail. Signs Post-Trade Technology and
Strategic Partnership Agreement with NASDAQ.
 2017-Launch of Trading on Sovereign Gold Bond, International exchange in
Gujarat International finance tech city.
 2016- Launched NIFTY 50 index futures trading on TAIFEX. Launched platform
for sovereign gold bond issuances. Launched electronic platform.
 2015- Entered into a memorandum of understanding. Renamed CNX NIFTY to
NIFTY 50.
 2014- Launched NMF-II platform for mutual funds. Launched NBF-II segment
for interest rate futures. Launched trading on India VIX index features.
Commenced trading on NIFTY 50 on the OSAKA exchange.
 2013- Launched the New Debt Segments (NDS).
STRUCTURE OF NSE
BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

MANAGING DIRECTOR

DEPUTY MANAGING
DIRECTOR

SENIOR VICE PRESIDENT

MANAGERS

ASSISTANT MANAGERS
STRUCTURE OF NSE (CONT..)
OFFICERS

JUNIOR OFFICERS

EXECUTIVE SECRETARIES

EMPLOYEES
FUNCTIONS OF NSE
 Establishing a nation-wide trading facility for equities, debt and other hybrid
instruments.
 Ensuring equal access to investors across the nation through an appropriate
communication network.
 Providing a fair, efficient and transparent securities market to investors using
electronic trading systems.
 Enabling shorter settlement cycles and book entry settlements meeting the
current international standards of securities markets.
PARTICIPANTS
MARKET MAKERS
A market maker is a person or a brokerage house that is always prepared
to buy and sell securities in order to provide liquidity to markets.

 MERCHANT BANKERS
Merchant bankers help their clients in raising finance by way of issue of
debentures, shares, bank loans and so on.
CURRENT SITUATIONS
 NMDC and IndusInd Bank enter 50-shares benchmark index of NSE (6th April
2013).
 NSE launches three new group indices (18th dec 2015).
 SEBI clears Vikram Limaye for the post of NSE Chief (10th june 2017).
 NES’s India Index Services & Products Ltd launches Nifty Equity Savings
Index (28th apr 2018).
 BSE, NSE get SEBI approval to launch commodity derivatives segments (20 th
sept 2018).
 SEBI bars NSE from securities market for 6 months: Co-Location Case (2nd
may 2019).
SETTLEMENT PROCESS IN NSE
STEPS OF SETTLEMENT PROCESS IN NSE
 Step 1: Trade details from exchange to NSCCL (clearing house of NSE)
 Step 2: NSCCL notifies the trade details to Clearing members/ Custodians
 Step 3: Download of obligation/ pay-in advice of funds/ securities
 Step 4: Instructions to clearing banks to arrange funds by pay-in time
 Step 5: Instruction to depositories for same
 Step 6: Pay-in of securities
 Step 7: Pay-in of funds
 Step 8: Pay-out of securities
 Step 9: Pay-out of funds
 Step 10: Depository informs custodians/ Clearing members through DP
 Step 11: Clearing banks inform custodians/ Clearing members.
CONCLUSION

 The National Stock Exchange has been a pioneer in Indian financial


markets, being the first electronic limit order book to trade
derivatives and ETF’s.
 The exchange supports more than 3000 V-sat terminals, making the
NSE the largest private wide-area network in the country.

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