The National Stock Market of India Limited is the country ‘s leading financial exchange, with headquarters in Mumbai. It was incorporated in 1992 and, since then, has evolved into a complicated, automated, electronic system offering trading facilities to investors across the country. In 2015, this exchange system ranked fourth place within the world consistent with the metric of its trading volume.
This stock market began its operations in 1994 at the behest of the Indian government to bring a level of transparency to the country ‘s capital market.
It was also the primary stock market within the country to introduce electronic trading facilities, thus facilitating the mixing of investors throughout the country into one base.
As of 2018, NSE had a complete market capitalization exceeding the US $ 2.25 Trillion, putting it in 11th place within the list of the most important stock exchanges within the world.
However, unlike the USA, where trading from the corporate sector accounts for about 70 you look after the country ‘s GDP, this sector in India accounts for less than 12-14% if you look after its total GDP. Out of this complete corporate sector, around 7800 companies are listed with about 4000 among those trading at Indian stock exchanges. Thus, stock market trading accounts for a meagre 4 you look after the country ‘s total GDP.
How does NSE Work?
Trading through this stock market in India is administered through an electronic limit order book where order matching takes place through a trading computer. Thus, during this market, sellers and buyers have the advantage of remaining anonymous. NSE market trading on the equities segment is carried on throughout the week, except on Saturdays, Sundays and other holidays declared by the stock market. Few institutional investors avail of the facility of “direct market access”.