Complete History of National Stock Exchange

Key Highlights

The National Stock Exchange (NSE), established in 1992 and based in Mumbai, is one of India’s largest stock markets.
It ranks as India’s leading exchange by trade volume and is globally recognized as the third-largest exchange in equity trading volume, after the NYSE and NASDAQ.
In 1995, NSE introduced a fully automated trading system, making transactions faster and more transparent.
Today, the NSE has approximately 2,200 companies listed across diverse industries, including technology, healthcare, and consumer goods.
NSE houses key indices such as the Nifty 50, CNX 100, and CNX 500, as well as industry-specific indices for IT and FMCG, which are used to track market trends and benchmark performance.

What is National Stock Exchange (NSE)?

The National Stock Exchange, established in 1992, is located in Mumbai and serves as a key Indian stock market. It is the second-biggest securities exchange company in India by market capitalization and the most significant one measured by daily turnover. NSE ranks as the third largest exchange in the world after NYSE and NASDAQ for overall equity trading volume over 2020.

History of National Stock Exchange

The National Stock Exchange (NSE) of India was incorporated in 1992 and recognized by the Securities and Exchange Board of India (SEBI) in 1993. It started operations in April 1993, initially as a wholesale debt market. This was followed by the launch of the cash market segment in 1994. Over the subsequent years, NSE has grown substantially to become one of the leading stock exchanges in the world with an average daily turnover of over INR 527.5 billion (~USD 7 billion).

Since its inception, NSE has made consistent efforts to remain at the forefront of other Indian exchanges concerning technology and innovation.

In 1995, it launched its fully automated screen-based trading system which made it easier for investors to buy and sell stocks electronically. This system also enabled faster trade execution and improved transparency. By 1999, it had successfully replaced manual trading completely and become the first exchange in India to do so.

In 2003, NSE implemented another technological breakthrough when it launched internet-based remote trading facilities for retail investors across India. This allowed investors from all parts of the country to access their accounts and place trades on any listed securities without having to physically visit a branch office or terminal room.

In 2009, the NSE introduced two important initiatives to enhance investment options for its users. First, it launched the Mutual Fund Service System (MFSS), an electronic platform that made it easier for investors to buy and manage mutual funds. Second, it rolled out index-based derivatives contracts, which help investors hedge against risks related to market fluctuations. These tools aimed to provide better ways for investors to grow their money while managing potential risks, making the investment process smoother and more efficient!

In 2010, NSE introduced a Depository Receipts product based on its existing technology platform which allowed foreign companies to raise capital from Indian markets without having to list themselves directly on an Indian stock exchange. The same year saw the launch of National Commodity & Derivatives Exchange Limited (NCDEX), a demutualized online commodity derivatives exchange set up by NSE along with other financial institutions such as ICICI Bank and Life Insurance Corporation of India (LIC).

Over the years, NSE has also become home to various indices such as the S&P CNX Nifty Fifty index, CNX 100 index, and CNX 500 Index along with sectoral indices like the IT index, FMCG index, etc., which can be used by investors for benchmarking their investments or constructing portfolios according to their risk appetite.

NSE's long history is a testament to its ability to stay ahead of the curve and continue innovating despite changing regulations, political upheaval, or any other external forces. Through its innovations and dedication, NSE has demonstrated how even a small organization can make a large impact when given proper support.

How many companies are listed on the national stock exchange?

According to the most recent numbers, there are roughly 2200 companies listed on the National Stock Exchange (NSE). The wide selection of corporations encompasses a variety of industries, ranging from consumer goods companies to high-tech medical equipment firms.