NATIONAL STOCK EXCHANGE (NSE)

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Description

Established in 1992, the National Stock Exchange (NSE) is India’s largest financial market. NSE has the fourth equity trading volume ranking worldwide and has been developed as a sophisticated, transparent, and fully automated stock platform. India’s first stock exchange, NSE, brings all investors on a single platform to trade equities, investment assets, securities, and debt instruments. It was established by a group of leading financial institutions in India to bring transparency to the Indian capital market. Key domestic investors on the NSE comprise entities such as the State Bank of India, IFCI Ltd, Life Insurance Corporation (LIC), and IDFC Ltd, among others.

 

SEBI recognized it as a stock exchange in 1993 and operated it as a fully integrated business including exchange listing, trading services, market data feeds, clearing and settlement services, financial education offerings, etc. NSE started internet trading in 2000 and became India’s first.

 

Trading in NSE began in 1994 with the introduction of the wholesale debt market and cash market. NSE also has subsidiaries that engage in trading activities in India and other countries. NSE also monitors the compliance of listed companies and trading with the rules and regulations of the Securities and Exchange Board of India (SEBI).

 

Looking at investors’ participation in the stock market, FY21-22 was one of the most important years for the National Stock Exchange (NSE) in the last decade. NSE maintained about 94% market share in the capital markets segment and about 100% market share in the equity derivatives markets. 

 

Furthermore, it maintained its leadership in the currency derivatives market, with a market share of about 74% in the forex segment and about 68% in the currency options segment. The price fluctuations of NSE non-listed have been marginal in the last few months. As depicted in the graph above, the NSE pre-IPO share price has risen from Rs 3400 to Rs 3500 over the past three months.

 

NSE has seen rapid growth in its revenues in the last three years. Its revenue is expected to reach Rs 9,500 crore in FY 2022 from Rs 3,896 crore in FY 2020. Its EBITDA reached Rs. From Rs 2555 crore to Rs 7069 crore within the same time, EPS almost tripled from Rs 38 in FY20 to Rs 7069 crore. 104.95 in FY22.

 

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