INTRODUCTION
The national stock exchange was incorporated in November 1992 with an equity capital of Rs. 25 crores. NSE is a professionally managed national market for shares, debentures and government securities with all the necessary infrastructure and trading facility.
NATURE OF NATIONAL STOCK EXCHANGE (NSE)
Ownership and management: - NSE is owned by a number of leading financial institutions, banks insurance companies etc. its management is in the hands of professionals, and day-to-day affairs are managed by the executive committee.
Computerized operation: - The trading is undertaken with the help of a computerized network.
National market: - NSE is a national-level stock exchange. It's working covers the almost whole of the country. Its terminals are set up at all the important places and it has a national wide market.
Run on commercial line: - NSE set up and runs on commercial lines. It is a profit-earning company.
Debt market: - National stock exchange also trades in debt bonds issued by the public sector undertaking mutual funds, and banks.
Separate index: - NSE has its own index which shows the overall changes in prices on a day-to-day basis. NSE index is known as NIFTY for shares.
Guarantee: - All trade transactions are guaranteed by the national securities clearing corporation.
Settlement of transactions: - NSE members are required to settle transactions by exchanging securities and making payments by 13th and 14th days, respectively. The 15th day is payment day.
Purpose: - The main purpose of NSE is to solve the problems of the secondary market through scriptless trading and de-materialization (DMAT) of scripts in depositories.
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