HISTORY OF THE NSE -INDIAN STOCK MARKET
NSE: HISTORY OF THE INDIAN STOCK MARKET
Today, we will discuss the origins of NSE in INDIAN STOCK MARKET and its complete HISTORY – HISTORY OF INDIAN STOCK MARKET.
Prior to the establishment of the NATIONAL STOCK EXCHANGE (NSE) in 1994, the SECURITIES AND CAPITAL MARKET in India was very backward compared to other countries of the world, and it was losing credibility after the Harshad Mehta SCAM.
In such a situation, with a TRANSPARENT TRADING SYSTEM and NEW TECHNOLOGY, it was necessary for this STOCK EXCHANGE to offer superior facilities to those in other nations.
NSE was founded to meet this need, and to this day, NSE’s services continue to meet the requirements for which it was founded.
In 2015, the WORD FEDERATION OF EXCHANGE (WFE) ranked NSE as the largest stock exchange in India and the fourth largest in the world in terms of EQUITY VOLUME TRADING.
According to the SEBI report, within one year of its establishment in 1994, NSE became the largest stock exchange in India in terms of TRADING AVERAGE VOLUME.
NSE introduced screen-based trading in 1994 and was the first stock exchange in India to offer such a trading platform. In addition, NSE introduced Index Future in 2000, which was a first of its kind.
Evolution of NSE – In Brief
1. 1993 – Establishment of NSE
2. 1994 – START OF SCREENBASED TRADING
3. 1996 – Inception of CNX NIFTY 50 INDEX
4. 1996 – START OF DEMAT ACCOUNT TRADING
5. 2000 – INDEX FUTURE TRADING BASED ON NIFTY 50
6. 2001 – Introduction of FUTURE and OPTION in SINGLE STOCK
7. 2001 – START OF INDEX OPTION TRADING BASED ON NIFTY 50
8. 2010 – START OF CURRENCY TRADING
9. 2015 – CNX Nifty renamed as NIFTY 50
NSE and BSE are indicators of the economic capital market of the nation.
Currently, in our country, the BSE and NSE stock exchanges operate almost identically, although their respective index values differ.
Because both indices begin in different years, and because the BSE INDEX SIRF consists of 30 companies and the Nifty-50 consists of 50 companies, the two indices are not comparable.
Today, the INDEX, BSE SENSEX, and NIFTY 50 indices of both stock exchanges represent the capital growth of the Indian economy.