Overview

National Stock Exchange of India Limited (NSE) is the leading stock exchange. Mostly owned by domestic and global financial institutions, public and privately owned entities and individuals. India’s largest stock exchange, established in 1992, comprises more than 2,000 listed companies. Its office is located in Mumbai, Maharashtra. NSE is ranked 4th in the world in cash equities by number of trades for the calendar year 2021. It is under the ownership of some leading financial institutions, banks, and insurance companies. It helps in providing a modern, fully automated screen-based electronic trading system that offers easy trading facilities to investors spread across the length and breadth of the country. Ashish Kumar Chauhan is the Managing Director and Chief Executive Officer of NSE.   

The NSE also monitors members' and listed companies' adherence to the exchange's rules and regulations through trading and clearing. Online trading was introduced by NSE in 2000, derivatives trading (in the form of index futures) in 1994, and electronic screen-based trading in 1994. About its exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions, and financial education programs, NSE has a completely integrated business model. 

Life Corporation of India (LIC) holds more than 10.70% stake in the NSE, State Bank of India (SBI) holds more than 3.20% stake, and SBI Capital Market Limited holds more than 4.30% stake.

The National Stock Exchange (NSE) has launched India's first dedicated website for passive funds, aiming to educate retail investors about this growing sector. As of June 2024, passive funds in India have gathered a total Assets Under Management (AUM) of ₹10.22 lakh crore, comprising ₹2.43 lakh crore in index funds and ₹7.79 lakh crore in Exchange Traded Funds (ETFs). The industry now boasts around 430 passive mutual funds, with 1.88 crore ETF folios and 75.76 lakh index fund folios as of March 2024. Nifty indices work as benchmarks for 145 ETFs in India and 16 abroad.

Product Offerings

Equity:

• Common stock 

• Exchange Traded Funds 

• REITs 

• InvITS 

• Mutual Funds

Fixed Income:

• Government securities 

• Corporate Bonds 

• OTC Clearing 

• Sovereign Gold Bonds

Derivatives:

• Equity Derivatives

• Currency Derivatives

• Commodity Derivatives

• Interest Rate Futures

Major Indices of NSE

• Nifty 50 Index

• Nifty 100 Index

• Nifty Next 50 Index

• Nifty Midcap 50 Index

• Nifty Small Cap 250 Index

• Nifty Vix Index

• Nifty 500 Index

• Nifty Bank

Functions of NSE

NSE provides trading of various financial instruments, each having specific details

• Equities:  Equities are the ownership in the company and provide investors the opportunity to become part of the company’s growth and profitability. A platform is provided to the shareholders by NSE to invest in publicly listed companies.

• Derivatives: NSE helps trading in derivatives, mainly in futures and options contracts, and is the largest derivatives exchange globally. These instruments allow the investors to invest in the underlying assets based on future price movements.

• Currency: Investors are able to invest in currency, including the Indian currency, also known as the Foreign Exchange Market, through the platform provided by NSE.

• Debt Instruments: NSE also facilitates investors to invest in debt instruments such as government bonds, corporate bonds, and other debt instruments.

• Exchange-traded funds (ETFs): NSE enables investors to invest in ETFs by providing them with a platform that tracks the performance of a specific index and sector.

Business Model:

NSE generates revenue through a variety of fees, including:

• Trading fees: This fee is charged from members and traders for each transaction executed on the exchange that they execute.

• Data fees: NSE provides huge market data and other information services.

• Listing fees: This fee is charged by companies for listing their securities on the exchange and they earn a decent amount through listing.

• Index licensing fees: This fee is charged for use of NSE's indices, such as the Nifty 50.

• Income from Investments and deposits: This is the Income from own cash as well as investments yields.

Performance Highlights:

• In FY24, Total consolidated revenue increased by 28.74% to Rs. 16433.61 Crores, and PAT increased by 12.91% to Rs. 8305.74 Crores in FY24.

• In FY 23-24, total revenue increased by around 18% from 12,692.19 Crores for FY 22-23 to 14,959.49 Crores for FY 23-24.

• A total of 13.08 Lakh Crores of total capital was raised through Equity and Debt, including CPs.

• A total of more than 9.2 crores of unique registered investors till FY24 and a total of 1992 crores of Investors Protection Fund.

• The dividend declared by the company is Rs. 90 per share.

• The market capitalization of listed companies on NSE increased by about 50% to 384 lakh crores (US$4.6 trillion) in FY 23-24, crossing the US$5 trillion mark on May 23, 2024, making India the fourth largest market in the world after the United States, China (including Hong Kong) and Japan

• NSE is the largest derivatives exchange in the world by number of contracts traded with over 9942.78 crores trades in FY24.

NSE's Competitive Advantage:

Dominant Market Share: NSE commands a major portion of India's trading activity, holding over 70% of the total market volume. This dominance provides NSE with considerable pricing power and economies of scale, offering a competitive edge.

Technology and Innovation: NSE consistently develops new products and services and invests in enhancing its trading platform. NSE is at the forefront of technological advancements and innovation in the Indian capital markets. 

Strong Brand Reputation: NSE is widely regarded as a reliable and trustworthy exchange, earning a strong brand reputation among investors, which strengthens its competitive position.

Dominant Clearing Market Share: NSE maintains a dominant position in clearing, with a 93% share in cash, 96% in derivatives, and 85% in currency segments.

Advantages of Investing in NSE with Bharat Invest:

• Access to the number of Unlisted Companies: Bharat Invest helps investors in pre-IPO shares like NSE through its platform.

• Diversify Portfolio: With NSE in your portfolio can help diversify your holdings and mitigate risks associated with individual stocks or sectors.

• High Growth Potentials: The Indian stock market's strong growth trajectory offers significant upside potential for NSE's future value.

• Expert Guidance: Investors are helped by a team of experts who provide guidance and support throughout the investment process.

Dividend

The NSE announced a dividend of Rs 90 per share for the year ending March 2024.

Corporate Action of NSE Unlisted Share Price

Financial Year Particulars             Record                     Amount                         Remarks

2023-24                    DIVIDEND            20-Aug-2024                   90                   NSE has declared a dividend of Rs 90/share.

2022-23                 DIVIDEND           16-Aug-2023                   80                   NSE has declared a dividend of Rs 80/share.

2021-22                 DIVIDEND           05-Jul-2022                   42                   NSE has declared a dividend of Rs 42/share.

2020-21                 DIVIDEND           25-Aug-2021               24.75                       NSE has given a dividend of Rs 24.75/share.

Bonus

The NSE announced the issue of Bonus Shares by way of capitalization of reserves, to the equity shareholders of the Company in the ratio of 4:1, i.e., 4 new fully paid-up Equity Shares of ₹1/- each for every 1 existing fully paid-up Equity Share of ₹1/-.