NSE Share Market

NSE Share Market

NSE Share Market

What is NSE?

NSE, means the National Stock Exchange of India Limited, is India’s leading stock exchange.

Which was established in 1992 and located in Mumbai, As this exchange brought a paradigm shift to the Indian financial?   NSE Share Market.

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In fact, the markets right after it had suffered a setback due to an unprecedented scam that hit.

However, The Bombay Stock Exchange make  This article, and divided into 4 major sections highlighted below, will introduce you to the legacy of NSE.   NSE Share Market.

 Do you know the History of National Stock Exchange of India?

After the outbreak of 1992 security scam in which a BSE member,  Therefore Harshad Mehta, was exposed manipulating the market. NSE Share Market.

That why The government of India takes action to promote establishing. NSE Share Market.

NSE based on recommendations made by the High Powered Study Group on Establishment of New Stock Exchanges.  NSE Share Market.

Afterward, the immediate aim was to provide equal Chance to investors from all across the nation so it makes participating in stock market easier.

NSE Share Market

NSE is India’s largest financial market located at Mumbai  Which was established in 1992.

Mo0reover, NSE ranks third in the ranking of the world of transacted volumes.  NSE Share Market.

National Stock Exchange deals in the transaction of debts, equities and the markets of derivatives.

You must know that it is the stock exchange which uses NIFTY as its index.

Nifty consists of the weighted average of 50 companies of India in From all the sectors.

Do you know that it was the first in the country to start with the demutualized electronic exchange?

Hence it provided with modern fully automated screen – a based electronic system of trading.

This move eased the trading facility for investors across the country.    NSE Share Market.

It has a total market capitalization of more than US$2.27 trillion, As a result, it is the world’s 11th-largest stock exchange as of April 2018.  NS E Share Market.

Flagship index, the NIFTY 50, the 50 stock index is used extensively by investors of India in India and around the world, however, it is a barometer of the Indian capital markets.

As we know that nifty 50 indexes were introduced in 1996 by the NSE.  NSE Share Market.

However, Vaidyanathan (2016) estimates that only 4% of the Indian economy / GDP is actually Come from the stock exchanges in India.     NSE Share Market.

However, Unlike countries like the United States where nearly about 70% of the GDP comes from larger companies and the corporate sector of the country.

NES Share Market

The corporate sector of the country like  India accounts for only about 12-14% of the national GDP up to October 2016.  NSE Share Market.

Of these only 7,800 companies are listed of which only 4000 trade on the stock exchanges at BSE and NSE in India.

Therefore the stocks trading at the BSE and NSE account for only about 4% of the Indian economy.

Which come from the most of itsincome-relatedd work from the so-called unorganized sector and househols.

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History 

As the result, the Indian government sought to create a financial market where investors can invest safely and securely in order to build wealth.

However, the exchange was incorporated in 1992 as a tax-paying company and was recognized as a stock exchange in 1993 under the Securities Contracts  Act, 1956,

It happened when P. V. Narasimha Rao was the Prime Minister of India and Manmohan Singh was the Finance Minister of India.   Share Market.

 

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National Stock Exchange commenced operations in the Wholesale Debt Market (WDM) segment in June 1994.   NSE Share Market.

As the capital market segment of the NSE commenced operations in November 1994. as the result operations in the derivatives segment commenced in June 2000.

National Stock Exchange as mainly set up in the early 1990s to bring in a change in the markets of India.

National Stock Exchange was ahead of its times when it makes difference between ownership and management in the exchange under SEBI’s supervision.      NSE Share Market.

As a result settlement guarantees could protect the investors against broker defaults.

NSE Share Market

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are the leading stock exchanges in India at present day.

on the other hand, BSE has the distinction of being the oldest stock exchange in Asia and  NSE is the largest in India.

Bombay Stock Exchange Limited is one of the oldest stock exchange in Asia with a rich heritage.

However, it is popularly known as BSE it was established as The Native Share & Stock Brokers Association in 1875. NSE Share Market.

Moreover, it was the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts  Act, 1956.

stock market, Also knows the equity market or share market is the aggregation of buyers and sellers a loose network of economic transactions.

On the other hand, Not a physical facility or discrete entity of stocks.

Also called shares which represent ownership claims on businesses.

Take some Stock exchanges list shares of common equity as well as other security types.

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For example, corporate bonds and convertible bonds.

The stock market is in the form of a secondary market.   NSE Share Market.

Stock market plays an important role in the economic development of the country.

As the stock market is channelizing the savings of the people and making them available for investment purpose.   NSE Share Market.

The following are some of the important functions of a stock exchange   NSE Share Market.

NSE Share Market

1. A continuous market for securities   NSE Share Market.

Moreover, Investors are able to invest in good securities and in case of any kind of risk, it may enable people to switch over from one security to another security.

So that stock markets provides a ready and continuous market opportunity for securities.

2. Evaluation of securities Exchange NSE SHARE MARKET

Evaluation of Securities stock exchange, the prices of securities clearly indicate the performance of the companies.   NSE Share Market.

It affects the demand and supply of securities in an effective manner.

Stock Market also clearly indicates the stability of companies

Moreover, investors are in a better position to take stock of the position and invest according to that.

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3.  A Stock exchange Protect investors  NSE Share Market.

However, As only genuine companies are listed and the activities of the stock exchange are controlled   NSE Share Market.

Moreover, the funds of the investors are very much protected.   

4.  A Stock exchange helps Capital formation NSE Share Market

Stock exchange plays a very important role in capital formation in the country.

On the other hand, Companies are able to raise funds either by issuing shares through rights shares or bonus shares.

But when a company wants to go in for diversification,   NSE Share Market.

As a result, they can issue the shares and raise more funds.   NSE Share Market.

Hence they are able to generate more capital and this promotes economic growth in the country.

which is most important for a country.   

 NSE Share Market.

5. Economic barometer NSE Share Market

The most important function of a stock exchange is that it acts as an economic barometer of conditions prevailing in the country.

However, a politically and the economically strong government will have an upward trend in the stock market.

In the case of an unstable government with heavy borrowings from other countries will have a downward trend in the stock market.   

So as result every government will adopt policies in such a manner so that the stock exchange remains dynamic.

6. Control on companies NSE Share Market

One of the major function of a stock exchange is that it controls on companies.

The companies listing their securities in the stock exchange has to submit their annual report and audited balance sheet to the stock exchange.

Hence only a good company can function and have the shares transacted.

If not, then such companies will be blacklisted and they will find it difficult to raise their capital.

You can also read these article.   NSE Share Market.

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