CURRENT SCENARIO OF NSE
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Current Scenario of National Stock Exchange Current Scenario of National Stock Exchange
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Transcript of CURRENT SCENARIO OF NSE
Current Scenario of National Stock Exchange
Current Scenario of National Stock Exchange
What is basically Stock and Exchange mean ?
Stock
Exchange An act of giving
one thing and receiving other.
The goods kept on the promises of a business or where
houses are available for sales and distribution.
A place where securities are brought and sold is known as stock exchange.
TYPE STOCK EXCHNGELOCATION MUMBAI, INDIA
FOUNDED 1992
OWNER NATIONAL STOCK EXCHANGE OF INDIA LTD.
CURRENCY INDIAN RUPEE ( ₹ )
INDICES S&P CNX NIFTYCNX NIFTY JUNIORS&P CNX 500
WEBSITE www.nseindia.com
MANAGING DIRECTOR CHITRA RAMKRISHNAN
She is CEO as well as MD of National stock Exchange.
Chitra Ramkrishna is the first woman managing director and chief executive officer of the National Stock Exchange (NSE), an institution founded in the early 1990s to reform the capital market in India, and now ranking as the world's largest exchange in cash market trades and as one of the top three exchanges in index and stock derivatives.
HISTORY
At present there are 24 stock exchanges in the country, 21 of them being regional ones with allotted areas. Two others set up in the reform era, viz., the National Stock Exchange (NSE) and Over the Counter Exchange of India (OTCEI), have mandate to have nation-wise trading.
The Stock Exchanges are being administered by their governing boards and executive chiefs. Policies relating to their regulation and control are laid down by the Ministry of Finance. Government also Constituted Securities and Exchange Board of India (SEBI) in April 1988 for orderly development and regulation of securities industry and stock exchanges.
REGULATORY AUTHORITY
Regulatory authority is the one which is under the government surveillance.A few stock exchanges companies follow the rules which are laid down by the government of India. 1) SEBI ( securities and exchange Board of India) 2) RBI ( Reserve Bank Of India)
SEBI
The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act 1992 and is the principal regulator for Stock Exchanges in India.
SEBI protects the interests of investors in securities and promotes the development of securities market.
The board helps in making registration and regulate the functioning.
SEBI conducts inspection and thus prohibits fraudulent practices.
RBI
RBI is the appex bank of India.RBI is also known as banker’s banks.Maintains price stability.Provides cost effective banking services to
the public.
Role Of Stock Exchange
Raising capital for businessesMobilizing savings for investmentFacilitating company growthProfit sharingCreating investment opportunities for small
investorsGovernment capital-raising for development
projectsBarometer of the economy
Market Segments of NSE
NSEI trades in the following two segments:
1. Whole Sale Debt Market Segment: This segment refers to the trading platform for a wide range of
fixed income securities like central government securities, bonds issued by public sector undertakings, zero coupon bonds, treasury bills, commercial papers, certificates of deposit, mutual funds, corporate debentures etc.
2. Capital Market System: This segment of NSEI provides a platform for transparent and
fair trading of equity, preference shares, debentures, exchange traded funds as well as retail Government securities.
Markets Of NSE
Equities :-
EquitiesIndicesMutual FundsInitial Public OfferingsSecurity Lending and Borrowing Scheme
Cont…………
Derivatives:-Equity DerivativesCurrency DerivativesInterest Rate Futures
Debt:-Corporate Bonds
Groups Of NSE
National Securities Clearing Corporation Limited (NSCCL) 1995
NSE InfoTech Services Limited (NSETECH)
India Index Services & Products Ltd. (IISL) 1998
DotEx International. Ltd. (DotEx)
ASSOCIATE / AFFILIATE COMPANIES
National Securities Depository Ltd. (NSDL)
National Commodity & Derivatives Exchange Ltd. (NCDEX)
Power Exchange India Limited (PXIL)
Objectives Of NSE
The important objectives of the NSE are given below:
(i) To provide a fair, transparent and efficient securities market to investors using electronic trading system.
(ii) To establish nationwide trading facility for equities and debt instruments.
(iii) To ensure equal access to investors all over the country through an appropriate communication network.
(iv) To improve the standard of securities market to international level.
The National Stock Exchange of India is managed by Board of Directors. The Board to an Executive Committee, which includes representatives from trading members, public and the management, delegate’s decision relating to market operations.
Besides the exchange operates various committees to advise it on areas such as good market practices, settlement procedures, risk containment system etc. Industry professionals, trading members and exchange staffs are members in these committees. The day-to-day management of the exchange is delegated to the Managing Director who is supported by a team of professional staff.
ORGANIZATION AND MANAGEMENT OF NSE
Current Scenario of NSE
Indices
S & P CNXNIFTY
Full Form of S&P CNX NIFTY
CNX stands for CRISIL NSE INDICES.
CNX ensure common branding of indices, to reflect the identities of both promoters i.e. NSE and CRISIL.
Thus, C stands for CRISIL, N stands for NSE, X stands for EXCHANGE or INDEX.
The S&P prefix belongs to the US-based standard and poor’s Financial Information Services.
The formula to calculate the Sensex is as follows:
(Sum of Free Float Market Capitalization / Base Market Capital ) x 100SENSEX = FREE FLOAT MARKET CAPITALIZATION ------------------------------------------- x 100 BASE MARKET CAPITAL
NIFTY CALCULATION
Just like the Sensex which was introduced by the Bombay stock exchange, Nifty is a major stock index in India introduced by the National stock exchange.
Nifty is calculated using the same methodology adopted by the BSE in calculating the Sensex – but with three differences. They are:
The base year is taken as 1995.The base value is set to 1000.Nifty is calculated on 50 stocks actively traded in the NSE.50 top stocks are selected from 24 sectors.
TODAY’S CURRENT SCENARIO OF NIFTY
https://en.wikipedia.org/wiki/Stock_exchangehttp://www.yourarticlelibrary.com/stock-exchange/history-of-stock-exchange-in-india/23488/https://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://www.nseindia.com/global/content/about_us/our_group.htmhttp://www.yourarticlelibrary.com/stock-exchange/national-stock-exchange-of-india-objectives-organisation-and-management/23484/https://en.wikipedia.org/wiki/CNX_Niftyhttp://in.investing.com/indices/s-p-cnx-nifty-historical-datahttp://taxguru.in/sebi/easy-understand-nifty-sensex-calculation.html
REFRENCES
