Stocks Unlimited – National Stock Exchange of India Limited (NSE)

The National Stock Exchange of India Limited (NSE) is very busy creating investment opportunities for the savvy investor, according to 3E Accounting.

India’s largest financial market is the National Stock Exchange of India Limited (NSE), which came into existence in 1992. It was recognized as a stock exchange the following year under the Securities Contracts (Regulation Act) 1956. Launching its wholesale debt and cash market, the NSE commenced trading in 1994.

Prior to the existence of the NSE, India’s stock market trade occurred via the Bombay Stock Exchange (BSE), which was established in 1875. In terms of listings, the BSE had 5,518 listings in 2020, while the NSE had 1,799. However, the NSE is considered a more liquid and larger stock market with regards to market capital and volume, respectively.

As a tax-paying company, the NSE has both domestic and global investors. These include the State Bank of India, Life Insurance Corporation, GS Strategic Investments Limited, PI Opportunities Fund, etc.

It brought tremendous change and transparency to a landscape that was traditionally closed and monopolized by brokerage firms. It established many industry firsts, such as introducing transparency in the Indian equity markets. The dichotomy of ownership and management was split. Stringent risk management systems were installed to ensure investor protection with settlement guarantees.

The NSE is located in Mumbai and is the first of its kind to be fully automated and electronic. It facilitates remote access to information and financial transactions via electronic means. The NSE created the National Securities Depository Limited (NSDL), which enables safe holding, transfer, and trade of shares and bonds electronically. It allowed anyone who met the minimum requirements stated to trade.

The NSE also introduced the NIFTY 50 in 1996. It is seen as a gauge of the Indian equity market and tracks the largest assets. The NSE has a total market capitalization of USD2.27 trillion, a majority of which is represented by the NIFTY 50 Index. Hence, plenty of global investors and traders rely on the NIFTY 50 Index.

 

A Bullish Market

The NSE maintains market indices that track capitalization, volatility, etc. The transactions that it offers are in equity, wholesale debt, and derivative markets and including clearing, grading, and settlement services. The NSE’s reach encompasses twelve sectors across 50 stocks of the Indian economy. Globally, it is ranked fourth as per equity trading volume.

The NSE’s most exciting initiative is the NSE EMERGE. Launched in 2012, it is aimed at empowering start-ups and SMEs (small, medium enterprises) in India. NSE EMERGE allows the listing of these companies without an IPO (initial public offering) and provides a platform to raise equity capital. Currently, 200 SMEs have listed on the NSE EMERGE under this initiative.

India is undoubtedly a powerhouse economy with a very robust emerging market. The National Stock Exchange of India Limited (NSE) is tangible proof of this, and investors are flocking to capitalize on the uptrend. 3E Accounting is on hand to assist entrepreneurs in getting in on all the action. From company incorporation to compliance, 3E Accounting offers customizable solutions to meet every need.

Contact 3E Accounting today and let the professionals guide you to success.