The Indian National Stock Exchange Limited (NSE), headquartered in Mumbai, is India’s largest stock exchange. The NSE was established in 1992 as the country’s first dematerialized online exchange. NSE was the country’s first exchange to provide a new, fully automated screen-based electronic trading network that provided investors with convenient trading facilities across the world. NSE Managing Director & Chief Executive Officer Vikram Limaye.
The National Stock Exchange has an overall market capitalization of over US$ 2.27 trillion, making it the 11th biggest stock exchange in the world as of April 2018. NSE‘s flagship index, the NIFTY 50, the 50 stock index, is commonly used as a barometer of the Indian capital markets for investors in India and around the world. Nifty 50 indexes were launched by the NSE in 1996. Vaidyanathan (2016), however, reports that only about 4% of India’s economy / GDP is actually derived from India’s stock exchanges.
NSE was formed primarily in the early 1990’s to introduce market transparency. Instead of trading membership being limited to a community of traders, NSE ensured that anyone eligible, skilled, and meeting minimum financial requirements would be able to trade. In this way, NSE was ahead of its times when it divided ownership and management in the exchange under the oversight of SEBI. The price information that could formerly only be viewed by a handful of people could now be seen with equal ease by a user in a remote location. The paper-based payment was replaced with online depository-based deposits, and it was always completed on time to settle transactions.