National Stock Exchange of India: An Overview

Image source: www.nseindia.com

The National Stock Exchange of India Limited (NSE) holds the distinction of being the largest financial market in India and is ranked fourth globally in terms of trading volume.

• Established in 1992, the NSE was set up with the primary objective of bringing transparency to the Indian equities markets. The key milestones in its journey include its incorporation in 1992, recognition as a stock exchange by SEBI in 1993, and the start of operations in 1994.
• The NSE pioneered the concept of fully automated electronic trading in India in 1994, leading a revolution in the country's stock market operations.
• Headquartered in Mumbai, the NSE facilitates trades across various segments including wholesale debt, stock, and derivative markets.
• The NSE also allows foreign companies seeking to raise capital in India to undertake new listings, initial public offerings (IPOs) , debt issuances, and the issuance of Indian Depository Receipts (IDRs).
• In 1996, the NSE introduced the Nifty 50 index, which has since become a benchmark for Indian equity markets. Learn more about the Nifty 50 index here.
• The NSE offers a wide range of products across three categories: Equity and equity-linked products, fixed income securities and debt products, and derivatives.

Understanding Equity Shares

An equity share, also known as an ordinary share, represents a fractional ownership in a company, with each shareholder assuming a proportionate level of entrepreneurial risk. Equity shareholders have voting rights and play a role in selecting the company's management.

• Equity share capital stays with the company and is returned only when the company winds up.
• Equity shareholders have voting rights and play a role in selecting the company's management.
• The dividend rate on equity capital depends on the availability of surplus capital. There is no fixed rate of dividend on equity capital.

Recent NSE News

• As of April 2023, Uttar Pradesh overtook Maharashtra, which had been leading for three months, in terms of new investor registrations. The month saw 126,000 new investor registrations from UP, surpassing Maharashtra's 118,000, followed by Rajasthan, West Bengal, and Madhya Pradesh.
• Data from the NSE shows that Maharashtra has been experiencing a steady decline in new registrations since October 2021, with a slight increase in the second half of the previous year. In April, there were 118,000 new registrations, a decrease of 22% from the previous month but a 43.5% increase year-on-year.