The National Stock Exchange is the largest stock exchange in the country. It is the foremost platform for trading in shares and other financial instruments. The most important aspect of this stock exchange is that it is very sophisticated and makes use of the latest technology to carry out operations. It is an electronic market; hence, none of the old methods of stock trading is present. In 2015, it came in the fourth position in terms of equity stock trading.
Features of the NSE
It was setup in 1992; however, trading was initiated in it from 1994. Traders who visit it will notice its use of many automated systems that provide high transparency in work. At any point, the complete history of a transaction can be tracked and traced. It has in place systems and procedures that ensure sound trading so that investor’s confidence is boosted. As the exchange has implemented nothing but the latest in electronic trading, all activities are carried out faster and with higher efficiency, resulting in bigger liquidity and also very accurate pricing.
What happens inside the National Stock Exchange?
When the stock exchange was initiated in 1994, it started with conducting just wholesale debt transactions. Now it has got into doing equity and derivative activities. It was set up by a group of financial institutions and is currently the first exchange in the country to provide investors with the opportunity of working in an exchange that offers fully automated electronic trading facilities. Trading here happens in Equity, Debt, and Derivative instruments.
It has an index called the NIFTY 50 which represents about 63 percent of the market capitalization in the exchange. This index represents 12 sectors of the Indian economy through 50 stocks. The exchange also has other market indices which track elements such as market volatility, specific sectors of the economy, market capitalization, and much more. A company that gets itself listed in this exchange gains a very big image, and also stands out from others in the industry.
The exchange collaborates with various universities across the country through which it offers BBA and MBA courses. It has come up with mock simulation software called NSE Learn to Trade or NLT, through which it teaches students trading, portfolio and investment skills that help them learn how to trade in the markets. It has certifications in its financial market program through which it conducts many online examinations and offers certifications. These certifications are available for both beginners and advanced levels, and they are spread across 46 modules which are based on various sectors of financial markets.
The trading systems used in the National Stock Exchange are state-of-the-art applications which are up all the time. In fact, they have an uptime record of 99.99 percent. Every day, about more than 450 million messages are processed through this system and the response time for any message is a millisecond.