NSE opened for trading in mid 1994. It was recently accorded recognition as a stock exchange by the Department of Company Affairs. The instruments traded are, treasury bills, government security and bonds issued by public sector companies. NSE is different from most Stock Exchanges in India where membership on an exchange also meant ownership of the exchange. The ownership and management of the Exchange is completely separated from the right to trading members, to trade on the NSE.
The NSE is managed by a Board of Directors. Decisions relating to market operations are delegated by the Board to an Executive Committee which includes representatives from the Trading Members, the public and the management. Besides, the Exchange operates various committees to advise it on areas such as good market practices, settlement procedures, risk containment systems etc. These committees are manned by industry professionals, Trading Members and Exchange staff. The day to day management of the NSE is delegated to the Managing Director who is supported by a team of professional staff.
The NSE of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax paying company unlike other stock exchanges in the country.
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The National Stock Exchange or NSE has set up a facility which serves as a model for the securities industry in terms of trading systems, practices and procedures. Though the impetus for its establishment came from policy makers in the country, it has been set up as a public limited company, owned by the leading institutional investors. The NSE, located in Bombay, is Indias first debt market. NSE was set up in 1993 to encourage stock exchange reform through system modernization and competition.
The National Stock Exchange or NSE has set up a facility which serves as a model for the securities industry in terms of trading systems, practices and procedures. Though the impetus for its establishment came from policy makers in the country, it has been set up as a public limited company, owned by the leading institutional investors. The NSE, located in Bombay, is Indias first debt market. NSE was set up in 1993 to encourage stock exchange reform through system modernization and competition.
