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What is National Stock Exchange (NSE) ?

February 20, 2018 By Mayank Mishra

 

Stock market eco-system has developed because of the existence of stock exchanges. For business expansion, these stock exchanges provide a platform to raise funds in primary market through IPO. For traders/investors, these exchanges provide an opportunity to earn money in the secondary market. NSE is the leading stock exchange in India. Let’s understand what is national stock exchange (NSE).

Article Content

  • History of National Stock Exchange
  • How NSE earns
  • NSE group companies
  • NSE Index
  • NSE trade timings
  • NSE Address

 

SEBI has brought transparency in the Indian financial market by enforcing its bye-laws to financial intermediaries and other entities within the eco-system. In past few years, SEBI has permitted (or forced) lots of stock exchanges to exit the bourse (exchange) business by raising the eligibility-bar of a stock exchange. This step was one of the cleaning processes of the financial market in India. SEBI performs its various functions through its 20 departments.

Currently there are 6 active stock exchanges in India, viz.

  1. BSE Ltd.
  2. Calcutta Stock Exchange Ltd.
  3. India International Exchange (India INX)
  4. Metropolitan Stock Exchange of India Ltd.
  5. National Stock Exchange of India Ltd.
  6. NSE IFSC Ltd.



FundsBase is glad to provide a glimpse to NSE in this article, one of the leading stock exchanges in India.

what is national stock exchange

History of National Stock Exchange

Till 1992, BSE was the most popular stock exchange in India. BSE used to function as a floor-trading exchange. In 1992 NSE was established as the first demutualized stock exchange in the country. It was also first stock exchange in India to introduce technologically advanced, screen-based trading platform (as opposed to floor-trading of BSE). This screen-based trading platform brought a revolution in bourse business in India. Soon NSE became the preferred stock exchange of traders/investors in India.

NSE is the abbreviation of National Stock Exchange Limited. It is privately owned organization. It was incorporated in 1992, recognized by SEBI as a stock exchange in 1993 and started operations in 1994.

NSE timeline journey is given at the end of this article.

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How NSE earns

In the stock market, an investor/trader has to pay various fee to trade/invest. You can read about these charges at different charges you pay in the stock market.

NSE is a demutualized privately held organization, thus its main purpose is to earn money. It earns from various sources viz.

  1. Transaction Charges
  2. When you trade/invest, a charge is levied by the NSE on the total turnover. This charge is called transaction charge. It is calculated as 

    Transaction charge = turnover charge + clearing charge

    This varies broker to broker due to change in clearing charge and other reasons. Exempli Gratia, it is 0.00325% for zerodha.

  3. Listing Fee
  4. When a company requires funding from public, for its expansion or other reasons, it approaches a stock exchange for listing its stock. Stock exchange charge a fee to provide its platform to those companies. This fee is divided into two parts viz.

    • Initial listing fee
    • NSE charges this one time fee from the company when they are listed. This fee is fixed for every company as 50,000.

    • Annual listing fee
    • This fee is paid annually by the companies listed on the NSE. It varies depending on company’s paid-up capital, bond and/or debenture and/or debt capital, etc. 

      FundsBase is providing this fee as mentioned on NSE website on 20 February 2018.

      Paid-up Annual fee
      Upto 50 Crore 2,00,000
      Above 50 Crore and upto 100 Crore 2,55,000
      Above 100 Crore and upto 200 Crore 3,30,000
      Above 200 Crore and upto 300 Crore 4,15,000
      Above 300 Crore and upto 400 Crore 5,10,000
      Above 400 Crore and upto 500 Crore 6,70,000
      Paid-up Annual fee Additional listing fee for every increase of 5 crore or part thereof
      ₹ 501 crore – ₹ 1000 crore ₹6,75,000.00 ₹4,150.00
      ₹ 1001 crore – ₹ 2000 crore ₹11,00,000.00 ₹4,625.00
      Paid-up Annual fee Additional listing fee for every increase of 5 crore or part thereof above 1,000
      ₹ 2001 crore – ₹ 3000 crore ₹11,25,000.00 ₹5,025.00
      more than ₹ 3000 crore ₹12,00,000.00 ₹4,600.00
    Also Read  Why is NSE more popular than BSE?

  5. Book Building Fees
  6. When an IPO is offered to the public, its demand is recorded to discover final stock listing price on the exchange. This process is called book building. NSE also offers this facility to companies.

  7. Educational workshops
  8. NSE provides various educational courses in finance and investment through its wholly owned subsidiary i.e. NSE Academy Ltd.

  9. Depository and Clearing Corporation
  10. NSE has its own depository (NSDL) and clearing corporation (NSCCL) which are required for demat shares holding and clearing the trades respectively. This service is provided for a fee to the users.

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NSE group companies

NSE has several group companies to facilitate its exchange platform and other services. These are

  1. NSCCL
  2. National Securities Clearing Corporation Limited, NSCCL, a wholly owned subsidiary of NSE is responsible for clearing and settlement of all trades executed on NSE and deposit and collateral management and risk management functions.

  3. NSICL
  4. NSE Strategic Investment Corporation Limited (NSICL), a subsidiary of NSE, was incorporated to, inter alia, make or hold all strategic investments in the equity shares and/or other securities of various companies, including NSE group companies.

  5. NSETECH
  6. NSE Infotech Services Limited (NSETECH) is a wholly owned subsidiary incorporated to cater to the needs of NSE and all its group companies exclusively.

  7. IISL
  8. India Index Services & Products Limited (IISL), a subsidiary of NSE Strategic Investment Corporation Limited was set up in May 1998 to provide a variety of indices and index-related services and products for the Indian capital markets.

  9. DotEx
  10. DotEx International Ltd. is a 100% subsidiary of NSE. DotEx operates NSE data feed business, which distributes real-time and proprietary market information to global data vendors, as well as to financial institutions and individual investors. DotEx also offers NEAT-on-Web (NOW), a trading software for web-based and mobile trading.

  11. NSEIT Ltd.
  12. NSEIT is a 100% subsidiary of National Stock Exchange of India Limited (NSE). NSEIT Limited offers technology consultancy and development services for the financial services industry, primarily for Indian markets.

  13. NSE IFSC Ltd.
  14. NSE IFSC Limited (NSE IFSC) is a fully owned subsidiary company of National Stock Exchange of India Limited (NSE) and applied to the SEBI for in-principle approval to establish an international exchange in Gujarat International Finance Tech City – International Financial Service Centre.

  15. NICCL
  16. NSE IFSC Clearing Corporation Limited (NICCL) is a fully owned subsidiary of National Securities Clearing Corporation Limited (NSCCL). NICCL has received recognition as a Clearing Corporation under Regulation 4 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and Securities and Exchange Board of India (International Financial Services Centres) Guidelines, 2015.

    NICCL has commenced its operations since June 05, 2017. NICCL currently acts as a clearing corporation for all the trades executed on NSE IFSC Ltd, a fully owned subsidiary of National Stock Exchange of India (NSEIL).

  17. NSDL
  18. NSDL is a depository for securities listed on Indian exchanges that are held and settled in dematerialized form. The enactment of Depositories Act in August 1996 paved the way for the establishment of NSDL, the first depository in India. NSE joined hands with the Industrial Development Bank of India (IDBI) and the Unit Trust of India (UTI) to set up NSDL, the first depository in India.

  19. NCDEX
  20. NCDEX is a professionally-managed online commodity exchange, set up through collaboration with the Life Insurance Corporation of India, the National Bank for Agriculture and Rural Development and ten other Indian and foreign partners.

    NCDEX offers to trade in agricultural commodities, bullion commodities and metals.

  21. PXIL
  22. Power Exchange India Limited (PXIL) is India’s first institutionally promoted Power Exchange which began operations in 2008.

    PXIL provides an electronic trading platform for India-focused electricity futures. Participants in PXIL include electricity traders, inter-state generating stations, power distribution licensees and independent power producers.

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Also Read  Zerodha Review: lowest cost brokerage in India

NSE Index

An exchange’s index is seen as one of the financial barometers of a country. NSE’s main index is Nifty 50. This index constitutes 50 stocks from 12 sectors to represent the volatility of NSE exchange. NIFTY 50 is owned and managed by India Index Services and Products Ltd. (IISL). IISL is India’s specialized company focused on the index as a core product.

Companies in Nifty 50 as on 20 February 2018 are given in below table.

Company Name Industry Symbol ISIN Code
Adani Ports and Special Economic Zone Ltd. SERVICES ADANIPORTS INE742F01042
Ambuja Cements Ltd. CEMENT & CEMENT PRODUCTS AMBUJACEM INE079A01024
Asian Paints Ltd. CONSUMER GOODS ASIANPAINT INE021A01026
Aurobindo Pharma Ltd. PHARMA AUROPHARMA INE406A01037
Axis Bank Ltd. FINANCIAL SERVICES AXISBANK INE238A01034
Bajaj Auto Ltd. AUTOMOBILE BAJAJ-AUTO INE917I01010
Bajaj Finance Ltd. FINANCIAL SERVICES BAJFINANCE INE296A01024
Bharat Petroleum Corporation Ltd. ENERGY BPCL INE029A01011
Bharti Airtel Ltd. TELECOM BHARTIARTL INE397D01024
Bharti Infratel Ltd. TELECOM INFRATEL INE121J01017
Bosch Ltd. AUTOMOBILE BOSCHLTD INE323A01026
Cipla Ltd. PHARMA CIPLA INE059A01026
Coal India Ltd. METALS COALINDIA INE522F01014
Dr. Reddy’s Laboratories Ltd. PHARMA DRREDDY INE089A01023
Eicher Motors Ltd. AUTOMOBILE EICHERMOT INE066A01013
GAIL (India) Ltd. ENERGY GAIL INE129A01019
HCL Technologies Ltd. IT HCLTECH INE860A01027
HDFC Bank Ltd. FINANCIAL SERVICES HDFCBANK INE040A01026
Hero MotoCorp Ltd. AUTOMOBILE HEROMOTOCO INE158A01026
Hindalco Industries Ltd. METALS HINDALCO INE038A01020
Hindustan Petroleum Corporation Ltd. ENERGY HINDPETRO INE094A01015
Hindustan Unilever Ltd. CONSUMER GOODS HINDUNILVR INE030A01027
Housing Development Finance Corporation Ltd. FINANCIAL SERVICES HDFC INE001A01036
I T C Ltd. CONSUMER GOODS ITC INE154A01025
ICICI Bank Ltd. FINANCIAL SERVICES ICICIBANK INE090A01021
Indiabulls Housing Finance Ltd. FINANCIAL SERVICES IBULHSGFIN INE148I01020
Indian Oil Corporation Ltd. ENERGY IOC INE242A01010
IndusInd Bank Ltd. FINANCIAL SERVICES INDUSINDBK INE095A01012
Infosys Ltd. IT INFY INE009A01021
Kotak Mahindra Bank Ltd. FINANCIAL SERVICES KOTAKBANK INE237A01028
Larsen & Toubro Ltd. CONSTRUCTION LT INE018A01030
Lupin Ltd. PHARMA LUPIN INE326A01037
Mahindra & Mahindra Ltd. AUTOMOBILE M&M INE101A01026
Maruti Suzuki India Ltd. AUTOMOBILE MARUTI INE585B01010
NTPC Ltd. ENERGY NTPC INE733E01010
Oil & Natural Gas Corporation Ltd. ENERGY ONGC INE213A01029
Power Grid Corporation of India Ltd. ENERGY POWERGRID INE752E01010
Reliance Industries Ltd. ENERGY RELIANCE INE002A01018
State Bank of India FINANCIAL SERVICES SBIN INE062A01020
Sun Pharmaceutical Industries Ltd. PHARMA SUNPHARMA INE044A01036
Tata Consultancy Services Ltd. IT TCS INE467B01029
Tata Motors Ltd. AUTOMOBILE TATAMOTORS INE155A01022
Tata Steel Ltd. METALS TATASTEEL INE081A01012
Tech Mahindra Ltd. IT TECHM INE669C01036
UPL Ltd. FERTILISERS & PESTICIDES UPL INE628A01036
UltraTech Cement Ltd. CEMENT & CEMENT PRODUCTS ULTRACEMCO INE481G01011
Vedanta Ltd. METALS VEDL INE205A01025
Wipro Ltd. IT WIPRO INE075A01022
Yes Bank Ltd. FINANCIAL SERVICES YESBANK INE528G01027
Zee Entertainment Enterprises Ltd. MEDIA & ENTERTAINMENT ZEEL INE256A01028
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NSE trade timings

For normal trading, NSE exchange opens at 09:15 and closes at 15:30 on weekdays. There is a pre-market session of 15 minutes from 09:00 to 09:15. Read more on the pre-market session.

NSE is closed on weekends and on exchange’s officially announced holidays for the calendar year. To know if NSE is open today see Stock Market Holiday for 2021.

NSE Address


NSE – Corporate Office

National Stock Exchange of India Ltd.,
Exchange Plaza, C-1, Block G,
Bandra Kurla Complex,
Bandra (E)
Mumbai – 400 051


NSE contact info

Tel No: (022) 26598100 – 8114
Fax No: (022) 26598120

Investor Grievance Cell Support 1800 22 0058 (Toll-Free) 
[Timings: 09:30 AM to 05:45 PM (Monday to Friday)]

Investor Grievance Cell 022 26598191 [email protected]

 
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national stock exchange history

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Filed Under: Stock Market

✍ Knowledge Center 📚

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👉 Why is NSE more popular than BSE?

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