NSE is under the ownership of various financial institutions such as banks and insurance companies. As of 2024, it is the world's largestderivatives exchange by number of contracts traded[a] and the third largest in cash equities by number of trades[b] for the calendar year 2023.[8][9][10]
History
Sculptures at NSE headquarters in Mumbai
National Stock Exchange was incorporated in 1992[11] to bring about transparency in the Indian equity markets. NSE was set up at the behest of theGovernment of India, based on the recommendations laid out by thePherwani committee in 1991[12] and the blueprint was prepared by a team of five members (Ravi Narain, Raghavan Puthran, K Kumar,Chitra Ramkrishna andAshishkumar Chauhan) along with R H Patil andSS Nadkarni who were deputed by IDBI in 1992.[13][14] Instead of trading memberships being confined to a group of brokers, NSE ensured that anyone who was qualified, experienced, and met the minimum financial requirements was allowed to trade.[15]
NSE commenced operations on 30 June 1994[16] starting with the wholesale debt market (WDM) segment and equities segment on 3 November 1994.[17] It was the first exchange in India to introduce anelectronic trading facility.[18] Within one year of the start of its operations, the daily turnover on NSE exceeded that of theBSE.[13]
Operations in the derivatives segment commenced on 12 June 2000.[17] In August 2008, NSE introducedcurrency derivatives.[19]
In May 2013, NSE launched India's first dedicated trading platform for debt-related products.[22]
In June 2017, NSE established the NSE International Exchange (NSE IX), which is a universal multi assets exchange headquartered in theGIFT City. NSE IX is the second international stock exchange of India, after theIndia International Exchange (India INX), which is also headquartered in GIFT City.
In 2023, NSE launched the Social Stock Exchange to allowsocial enterprises, including non-profit organisations, raise funds from the public.[23]
Trading
Listings
As of December 2024, NSE has 2,671 companies listed, with 2,084 companies listed on the mainboard and 587 companies listed on its SME platform−NSE EMERGE.[24] Total market capitalization of NSE-listed companies was₹438.9lakhcrore (US$5.13 trillion), as of 31 December 2024.[2]
As of December 2023, there were 190ETFs listed on the NSE, including ETFs on equity, debt and commodity asset classes.[25] The firstInvIT listed on the NSE in 2017 and the firstREIT in 2019.[26][27]
As of January 2025, NSE has over 11crore unique registered investors.[28]
Indices
NSE Indices operates NSE's broad-based, sectoral, thematic, strategy and fixed-income indices.[29] The flagship indexNIFTY 50 was launched on 22 April 1996, with a base value of 1,000 on the base date of 3 November 1995.[30][31]
Derivatives
The NSE allows trading of futures and options contracts of indices and single stock contracts.[32]
On 3 May 2012, the National Stock exchange launched derivative contracts (futures and options) on FTSE 100, a widely tracked index of the UK equity stock market.[33] On 10 January 2013, the National Stock Exchange signed a letter of intent with the Japan Exchange Group, Inc. (JPX) for the launch of NIFTY 50 index futures on theOsaka Securities Exchange (OSE).[34][35]
NSE has collaborated with several universities likeGokhale Institute of Politics & Economics (GIPE) - Pune,Bharati Vidyapeeth Deemed University (BVDU) - Pune,Guru Gobind Singh Indraprastha University - Delhi,RV University[42] - Bangalore, theRavenshaw University - Cuttack andPunjabi University - Patiala, among others to offer MBA and BBA courses. NSE has also provided mock market simulation software called NSE Learn to Trade (NLT) to develop investment, trading, and portfolio management skills among the students.[43] The simulation software is very similar to the software currently being used by the market professionals and helps students to learn how to trade in the markets. NSE also conducts online examinations and awards certification, under its Certification in Financial Markets (NCFM) programs.[44] NSE has set up NSE Academy Limited to further financial literacy.
At present, certifications are available in 46 modules, covering different sectors of financial and capital markets, both at the beginner and advanced levels. The list of various modules can be found at the official site of NSE India. In addition, since August 2009, it has offered a short-term course called NSE Certified Capital Market Professional (NCCMP).[45]
Market operators continue to operate in the NSE, albeit within a regulatory framework aimed at ensuring transparency and fairness. Market operators are individuals or entities that actively engage in buying and selling securities to influence their prices for profit. They operate through various strategies, such as arbitrage,short selling,high-frequency trading,front running,churning,scalping,wash trading, spoofing, and layering, often leveraging sophisticated technology and large capital. Regulatory bodies like the Securities and Exchange Board of India (SEBI) oversee market activities to curb malpractices such asinsider trading, price rigging, andmarket manipulation. SEBI has implemented measures, including surveillance systems, to detect and penalize unethical practices. Despite these regulations, market operators exploit loopholes to gain an edge, necessitating continuous vigilance and regulatory updates. Market operators often use thepump and dump strategy, despite strict regulations against such practices. This scheme involves artificially inflating the price of a stock through false or misleading positive statements. Once the price has been significantly raised, the operators then sell off their holdings at the inflated prices, leading to a sharp price decline and substantial losses for other investors who bought in at the higher prices. Their activities have continued to impact market volatility, liquidity, and price discovery, playing a significant role in the dynamics of NSE.[68][69][70][71][72]
^Uppal, Jamshed Y., and Inayat U. Mangla. “Market Volatility, Manipulation, and Regulatory Response: A Comparative Study of Bombay and Karachi Stock Markets.” The Pakistan Development Review, vol. 45, no. 4, 2006, pp. 1071–83.JSTOR41260669. Accessed 30 May 2024.
^Goel, A., Tripathi, V. and Agarwal, M. (2021), "Market microstructure: a comparative study of Bombay stock exchange and national stock exchange", Journal of Advances in Management Research, Vol. 18 No. 3, pp. 414-442.doi:10.1108/JAMR-06-2020-0109
^Prabu, A.E., Bhattacharyya, I. & Ray, P. Impact of monetary policy on the Indian stock market: Does the devil lie in the detail?. Ind. Econ. Rev. 55, 27–50 (2020).doi:10.1007/s41775-020-00078-2
Further reading
Rawlin, R. (2011).Multivariate Analysis to Get an Estimate of the Indian Stock Market Nifty Index. GRIN Verlag.ISBN978-3-6560-6385-8.
The Indian Financial System: Markets, Institutions And Services, 2/E. Pearson Education. 2007.ISBN978-8-1775-8562-9.
Ganeshaiah, K. N. “Has the Behaviour of the Stock Market Been Affected by the Scam? — A Statistical Analysis.”Current Science 63, no. 7 (1992): 345–47.JSTOR24095453.
D., Sumathi, Stock Price Volatility in National Stock Exchange of India (2018). International Journal of Research in Economics and Social Sciences (IJRESS), December 2018, Available atSSRN3319625
Kumar, G. and Misra, A.K. (2020), "Long run commonality in Indian stocks: empirical evidence from national stock exchange of India", Journal of Indian Business Research, Vol. 12 No. 4, pp. 441-458.doi:10.1108/JIBR-09-2016-0091
Basu, D. and Dalal, S. (1993).The Scam: Who Won, who Lost, who Got Away. UBS Publishers' Distributors.ISBN978-8-1859-4410-4.LCCN93902443.{{cite book}}: CS1 maint: multiple names: authors list (link)
Nair, S. (2021).Bulls, Bears and Other Beasts (5th Anniversary Edition): A Story of the Indian Stock Market. Pan Macmillan.ISBN978-9-3907-4257-8.
Goel, A., Tripathi, V. and Agarwal, M. (2021), "Market microstructure: a comparative study of Bombay stock exchange and national stock exchange", Journal of Advances in Management Research, Vol. 18 No. 3, pp. 414-442.doi:10.1108/JAMR-06-2020-0109
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₹19,177 crore (US$2.3 billion) (2025)
