Here we will try to take basic information about what is National Stock Exchange and how it works. The information we are going to give will be very suitable for investors and those who want to make their company a public limited company.
We will know about what are the benefits of doing a company public limited because people in India are afraid to run the company in a professional way, they want to keep the ownership of the company with their family, so most companies shy away from doing a public listed company.
If we see the big company of India, then it comes to know that it is run as a family property, so we see that the intellectual corporate leaders of India accept the leadership of foreign companies and work for them. NSE & BSE is is the best platform to raise funds for your company and increase the goodwill of your company and most importantly, this organization works under the control of the government and we can trust it.
What is the National Stock Exchange?
NSE is indirectly under government control & regulated by SEBI, but its main ownership is legally with financial institutions and banks, insurance companies. In 1992, after the policy of open economy and after the big financial scandals of the Mumbai stock market, it was established by the regulation of SEBI under very adverse circumstances.
For the first time in India, the stock exchange was made in electronic form and equipped with a computer, so that there could be transparency in the dealings of the stock exchange. This stock exchange of India is considered to be an important stock exchange in the world today, whose market capitalization is $ 3.4 trillion.
Bombay Stock Exchange It is considered to be the oldest stock exchange in India, but since the National Stock Exchange was established, NSE is preferred by most of the brokerage houses for investment and company listing, many people do not know the reason for this, but The technology of NSE has been developed a lot. The resulting behavior happens very quickly and everyone benefits from it.
How is Nifty 50 calculated with example?
Like when we keep our products for sale in the market, we do not keep all the products in front, only keep some special and best products so that the customer can be attracted. Such indices are also created in the share market so that the investor can know and he is attracted for investment.
That’s why Nifty 50 this index has been created in which the fifty best companies of NSE are shown, which have been performing well for the last few years. This index keeps changing according to the performance, but some of the best companies keep their performance consistent.
Just some companies are out of it and new players join this list. It is called the benchmark index, from which how the performance of the companies. The stock exchange is estimated in the stock market or how the market trend is estimated.
What is the history of the stock exchange in India?
Before 1990, Bombay Stock Exchange was considered to be the most important stock exchange in India. All transactions in this stock exchange were done on paper and the investor would have to be present in the stock exchange to know the stock price and its ups and downs. Otherwise, it used to take a lot of time to understand the share market price and buy and sell paper shares.
Before 1990, due to no special law and regulation for the stock market, it was very difficult for the common man to understand the stock market. So the National Stock Exchange by NSDL changed the old system so that the common man could also invest in the stock market. The facility was built so that it could be easily obtained.
Earlier, in the matter of transparency in the stock market and due to the lack of confidence in regulatory matters, investors used to shy away from investing in the stock market. After 1990, foreign investors should invest in India through SEBI and by setting up NSE. The Narasimha Rao government made these changes to maintain the confidence of the people in the market.
What is the main function of National Stock Exchange?
National Stock Exchange It is a platform through which to provide money to companies registered in the company law in India. Investors and companies who want to raise money to increase their business, the work of merging these two was done through the National Stock Exchange.
The company raises money from the market through IPO in the National Stock Exchange, through bonds and through government company debentures. For which the stock exchange allows the investor to collect all the information about the company in a way and keep it with him and see any error. On arrival, he can ban such companies from being listed on the stock exchange.
Earlier this platform was available only for big companies in the stock market, but today the National Stock Exchange has created a platform for small business and technology companies to raise money from the market with some special facilities, so that companies can increase their business. .
What is the difference between NSE and BSE? –
BSE Stock Exchange It is considered to be the oldest exchange not only in India but in the whole of Asia, which was established in 1875 at Dalal Street in Mumbai. There are about 6000 companies listed in BSE and its Sensex index is considered to be a very important index for investors all over India.
NSE established in 1992 with the help of Narasimha Rao government, whose original objective was that the BSE should not have a monopoly on the Indian stock market. The control of the government could give confidence to people to invest in the stock market and create a platform for foreign investment.
The most important difference between NSE and BSE is that 6000 companies are listed in BSE and 1600 companies are listed in NSE but the proof of buy and sell (Trading Volume) is very high in NSE. Most of the brokers prefer to deal with NSE for investment, trading, as the transactions take place very fast, which benefits the broker and the investor.
What is the role of NSE in development of Indian economy?
Businesses grow in India when interest rates are low in the market, which makes it less costly for companies to raise money. This creates a booming environment in the market. Due to increase in the interest rate, a bearish environment is created in the market, so the Reserve Bank has to keep the interest rate under control.
Inflation is another important component of the economy, which has consequences on the stock market, so the market volatility depends on the buying ability of the investor. There is still a large number of unorganized businesses in India, so to bring development in the Indian economy. It is necessary to come to this business stock market, which will benefit everyone, including investors and companies.
In India, people trust more in running a family business, which is the most important reason for stopping the growth of the economy. 70% of the people in America are associated with the stock market, this figure is much bigger than in India.
In India, if instead of family-oriented business, professional people start running businesses in the true sense, then more investors and listed companies will come in the market. Which will further boost the Indian economy. India’s economy has the potential to become the world’s largest economy, only we have to change our thinking capacity.
What is the reason for establishment of NSE?
After starting in 1992, today Nifty has crossed the 15000 mark, in which the initial 13 companies are still seen in this journey and NSE stock market is the most trusted and favorite stock market for international investors in India’s stock market.
Establishment of NSE This Harshad Mehta scam and Satyam computer scam are considered to be a reformation of the many flaws of the stock market, through which NSE was created for the first time in electronic form for investors and companies in India.
Despite having more than 6000 companies listed in BSE, people trust more on NSE stock exchange and we get to see the most evidence of behavior in NSE. Today, both BSE and NSE important stock exchanges are equipped with computers, but when NSE brought this technology to the stock market for the first time, it helped a lot in increasing the confidence of the people in the stock market.
What are the key features of NSE ?
- Investing in NSE or listing a company is a very simple process and easily available all over India through all the technology which used to be very difficult earlier.
- NSE has created such an easy and secure platform that investors can do their transactions sitting at home through their demat account.
- The process of buying and selling and completing transactions is so smooth and quick, which has made dealing in the stock market very easy.
- In terms of safety, NSE has simplified the process of investing and raising money in the market with very important regulations, so that foreign investors and Indian investors feel themselves safe here.
- NSE has set up a separate platform for startup companies to grow their business in the market.
- NSE has given special facilities for companies working in the technology sector, so that a company with very little experience and less capital can make money from the market.
- NSE maintains the list of brokers and sub-brokers on its site for the safety of the investor so that the wrong broker does not trap the investor.
- Before the company takes off its IPO, NSE verifies all the information of that company.
Main Stock Exchanges of India –
- NSE India Ltd.
- BSE Ltd.
- Metropolitan Stock Exchange of India Ltd.
- Culcutta Stock Exchange Ltd.
- NSE IFSC Ltd.
- India International Exchange Ltd.
Main Indexes of NSE –
- NIFTY 50
- NIFTY 100
- NIFTY NEXT 50
- NIFTY MIDCAP 50
- NIFTY SMALL CAP 250
- INDIA VIX
In this way we have seen here how the NSE stock exchange was started and in what condition it was done. We tried to know here, how Shares, Bonds, Debentures and Commodities are treated in NSE. The reason for the people’s faith in the stock market is the establishment of NSE.
Before 1992, India’s economy was completely destroyed, only then the Finance Minister of Narasimha Rao government, who is known for his economic knowledge, brought a new economic policy in India, so that India’s stock market would get a new speed and the economy would come back on track.
BSE was the oldest stock market in India, but there was a lot of transparency in dealing with it and it was very difficult for the new investor to come to the stock market, which became very easy after the arrival of NSE. The dominance of BSE was ended through the establishment of NSE, so that the stock market of India should be controlled.