11

NATIONAL STOCK EXCHANGENATIONAL STOCK EXCHANGECONTENTSCONTENTSEstablishment Establishment PurposePurposeMarketsMarketsTrading HoursTrading HoursIndexIndexNational First National First Fifty companiesFifty companiesCNX SNP JuniorCNX SNP JuniorCNX 100CNX 100CNX-SNP 500CNX-SNP 500Listing Listing Indicator Indicator AdvantagesAdvantagesMarket SegmentMarket SegmentInnovations Innovations Quick FactsQuick Facts

22

ESTABLISHMENTESTABLISHMENT

The National Stock Exchange of India was promoted by The National Stock Exchange of India was promoted by leading Financial institutions at the best of the Government leading Financial institutions at the best of the Government of India, and was incorporated in November 1992 as a tax-of India, and was incorporated in November 1992 as a tax-paying company. paying company. In April 1993, it was recognized as a stock exchange In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while commenced operations in November 1994, while operations in the Derivatives segment commenced in June operations in the Derivatives segment commenced in June 2000.2000.

33

PURPOSEPURPOSE

Establishing a nationwide trading facility for all Establishing a nationwide trading facility for all types of securitiestypes of securities

Ensuring equal access to investors all over the Ensuring equal access to investors all over the country through an appropriate communication country through an appropriate communication networknetwork

Providing for a fair, efficient and transparent Providing for a fair, efficient and transparent securities market using electronic trading systemsecurities market using electronic trading system

Enabling shorter settlement cyclesEnabling shorter settlement cycles

Meeting up with international benchmarks and Meeting up with international benchmarks and standardsstandards

44

MARKETSMARKETS

Currently, NSE has the following major segments Currently, NSE has the following major segments of the capital market:of the capital market:

EquityEquity

Futures and OptionsFutures and Options

Retail Debt MarketRetail Debt Market

Wholesale Debt MarketWholesale Debt Market

Currency futureCurrency future

55

TRADING HOURSTRADING HOURS

NSE's normal trading sessions are NSE's normal trading sessions are conducted from 9:00 am India Time to conducted from 9:00 am India Time to 3:30 pm India3:30 pm India

66

INDEXINDEX

S&P CNX Nifty Standard & Poor's CRISIL S&P CNX Nifty Standard & Poor's CRISIL NSE Index)NSE Index)CNX Nifty JuniorCNX Nifty JuniorCNX 100 (= S&P CNX Nifty + CNX Nifty CNX 100 (= S&P CNX Nifty + CNX Nifty Junior)Junior)S&P CNX 500 (= CNX 100 + 400 major S&P CNX 500 (= CNX 100 + 400 major players across 72 industries)players across 72 industries)CNX Madcap (introduced on 18 July 2005 CNX Madcap (introduced on 18 July 2005 replacing CNX Madcap 200)replacing CNX Madcap 200)

77

NATIONAL FIRST FIFTYNATIONAL FIRST FIFTY

The The S&P CNX NiftyS&P CNX Nifty ( ( Nifty 50Nifty 50 or simply or simply NiftyNifty)  is a composite of the top 50 stocks )  is a composite of the top 50 stocks listed on the National Stock Exchange listed on the National Stock Exchange (NSE), representing 24 different sectors of (NSE), representing 24 different sectors of the economy. the economy.

88

NATIONAL FIRST FIFTY NATIONAL FIRST FIFTY COMPANIESCOMPANIES

TATA MotorsTATA Motors

RanbaxyRanbaxy

TATA steelTATA steel

Grasim Inds.Grasim Inds.

Axis bankAxis bank

GAIL GAIL

NTPCNTPC

SiemensSiemens

BPCLBPCL

IDBIIDBI

CIPLACIPLA

HERO HONDA Etc….HERO HONDA Etc….

99

THE CNX NIFTY JUNIOR

The CNX Nifty Junior is an index for companies on the National Stock Exchange of India.

It represents the next rung of liquid securities after S&P CNX Nifty.

It consists of 50 companies representing approximately 10% of the traded value of all stocks on the National Stock Exchange of India.

The CNX Nifty Junior is owned and operated by India Index Services and Products Ltd.

It is quoted using the symbol NSMIDCP.

1010

S&P CNX 500The S&P CNX 500 is India’s first broad-based stock market index of the Indian stock market.

The S&P CNX 500 represents about 96% of The S&P CNX 500 represents about 96% of total market capitalization and about 93% of the total market capitalization and about 93% of the total turnover on the National Stock Exchange of total turnover on the National Stock Exchange of India (NSE). India (NSE).

The S&P CNX 500 companies are disaggregated The S&P CNX 500 companies are disaggregated into 72 industry indices, the S&P CNX Industry into 72 industry indices, the S&P CNX Industry Indices Indices

Industry weights in the index reflect the industry Industry weights in the index reflect the industry weights in the market weights in the market

1111

LISTINGLISTINGevery NSE listed company is required to satisfy stringent financial, every NSE listed company is required to satisfy stringent financial, public distribution and management requirements. public distribution and management requirements. High listing standards foster investor confidence and also bring High listing standards foster investor confidence and also bring credibility into the markets.credibility into the markets.

NSE plays an important role in helping an Indian companies NSE plays an important role in helping an Indian companies access equity capital, by providing a liquid and well-regulated access equity capital, by providing a liquid and well-regulated market. market. NSE has about 1319 companies listed representing the length, NSE has about 1319 companies listed representing the length, breadth and diversity of the Indian economy which includes from breadth and diversity of the Indian economy which includes from hi-tech to heavy industry, software, refinery, public sector units, hi-tech to heavy industry, software, refinery, public sector units, infrastructure, and financial services. infrastructure, and financial services. Listing on NSE raises a company’s profile among investors in India Listing on NSE raises a company’s profile among investors in India and abroad. Trade data is distributed worldwide through various and abroad. Trade data is distributed worldwide through various news-vending agencies. More importantly, news-vending agencies. More importantly, NSE lists securities in its Capital Market (Equities) segment and its NSE lists securities in its Capital Market (Equities) segment and its Wholesale Debt Market segmentWholesale Debt Market segment

1212

INDICATIONSINDICATIONS

An upbeat economy is usually reflected in a An upbeat economy is usually reflected in a strong performance of the Nifty Index strong performance of the Nifty Index

A rising index is also indicative that the investors A rising index is also indicative that the investors are gung-ho about the future are gung-ho about the future

The Nifty Index is based upon solid economic The Nifty Index is based upon solid economic research research

It is internationally respected and recognized as It is internationally respected and recognized as a pioneering effort in providing simpler a pioneering effort in providing simpler understanding of stock market complexities understanding of stock market complexities

1313

ADVANTAGES OF TRADING AT ADVANTAGES OF TRADING AT NSENSE

Integrated network for trading in stock Integrated network for trading in stock market of India market of India

Fully automated screen based system that Fully automated screen based system that provides higher degree of transparency provides higher degree of transparency

Investors can transact from any part of the Investors can transact from any part of the country at uniform prices country at uniform prices

Greater functional efficiency supported by Greater functional efficiency supported by totally computerized networktotally computerized network

1414

MARKET SEGMENTSMARKET SEGMENTSThe Wholesale Debt Market segment provides the The Wholesale Debt Market segment provides the trading platform for trading of a wide range of debt trading platform for trading of a wide range of debt securities.securities.The Capital Market segment offers a fully automated The Capital Market segment offers a fully automated screen based trading system, known as the National screen based trading system, known as the National Exchange for Automated Trading (NEAT) system. This Exchange for Automated Trading (NEAT) system. This operates on a price/time priority basis and enables operates on a price/time priority basis and enables members from across the country to trade with members from across the country to trade with enormous ease and efficiency.enormous ease and efficiency.The Futures & Options segment of NSE provides The Futures & Options segment of NSE provides trading in derivatives instruments like Index Futures, trading in derivatives instruments like Index Futures, Index Options, Stock Options, Stock Futures and Index Options, Stock Options, Stock Futures and Futures on interest rates. Futures on interest rates.

1515

INNOVATIONSINNOVATIONSBeing the first national, anonymous, electronic Being the first national, anonymous, electronic limit order book (LOB) exchange to trade limit order book (LOB) exchange to trade securities in India. Since the success of the NSE, securities in India. Since the success of the NSE, existent market and new market structures have existent market and new market structures have followed the "NSE" model.followed the "NSE" model.Setting up the first clearing corporation "National Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in India. Securities Clearing Corporation Ltd." in India. NSCCL was a landmark in providing innovation NSCCL was a landmark in providing innovation on all spot equity market (and later, derivatives on all spot equity market (and later, derivatives market) trades in India.market) trades in India.Co-promoting and setting up of National Co-promoting and setting up of National Securities Depository Limited, first depository in Securities Depository Limited, first depository in IndiaIndiaSetting up of S&P CNX NiftySetting up of S&P CNX Nifty..

1616

NSE pioneered commencement of Internet Trading in NSE pioneered commencement of Internet Trading in February 2000, which led to the wide popularization February 2000, which led to the wide popularization of the NSE in the broker community.of the NSE in the broker community.Being the first exchange that, in 1996, proposed Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly on an equity exchange traded derivatives, particularly on an equity index, in India. After four years of policy and index, in India. After four years of policy and regulatory debate and formulation, the NSE was regulatory debate and formulation, the NSE was permitted to start trading equity derivativespermitted to start trading equity derivativesBeing the first and the only exchange to trade GOLD Being the first and the only exchange to trade GOLD ETFs (exchange traded funds) in India.ETFs (exchange traded funds) in India.NSE has also launched the NSE-CNBC-TV18 media NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV18 acentre in association with CNBC-TV18 a

1717

QUICK FACTS ABOUT NSEQUICK FACTS ABOUT NSERanks 04th in the world, in terms of number of Ranks 04th in the world, in terms of number of transactions executed on a stock exchange, transactions executed on a stock exchange, after NASDAQ, NYSE and Shanghai SE.after NASDAQ, NYSE and Shanghai SE.

Ranks 2nd in the world, in terms of the number Ranks 2nd in the world, in terms of the number of contracts traded in Single Stock Futures.of contracts traded in Single Stock Futures.

Ranks 03rd in the world, in terms of no. of Ranks 03rd in the world, in terms of no. of contracts traded, in Stock index Futurescontracts traded, in Stock index Futures

Ranks 2nd in Asia, in terms of no. of contracts Ranks 2nd in Asia, in terms of no. of contracts traded, in equity derivatives instrument.traded, in equity derivatives instrument.

1818

CERTIFICATIONS

• NSE also 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.

1919

REQUIREMENTREQUIREMENT

DEMAT ACCOUNT DEMAT ACCOUNT

& &

Trading AccountTrading Account

CompaniesCompanies

2020

2121

SOURCESSOURCES

www.nse-india.comwww.nse-india.com

www.wikipedia.comwww.wikipedia.com

www.youtube.comwww.youtube.com

2222

THANK YOU FOR THANK YOU FOR PATIANCE PATIANCE

2323

TrendsTrends

07Jan – Fraud of Satyam07Jan – Fraud of Satyam12jan – World bank bans WIPRO12jan – World bank bans WIPRO13 April – Tech Mahindra buys satyam13 April – Tech Mahindra buys satyam25 may – Bharti MTNL talk25 may – Bharti MTNL talkJuly 7 – FM presents BudgetJuly 7 – FM presents BudgetOct 23 – Longer trading hoursOct 23 – Longer trading hoursDec 17 – Trading @ 9 ClearedDec 17 – Trading @ 9 Cleared11stst Jan - Implemented Jan - Implemented