|National Stock Exchange of India (NSE)|
|Key People||J. Ravichandran, Interim CEO and Managing Director; Ravi Narain, Non-executive Vice Chairman|
|Products||S&P CNX Nifty index|
The National Stock Exchange of India (NSE) became the country's largest stock exchange soon after its launch in 1993 and hosts India's main equities benchmark, the S&P CNX Nifty. The NSE also lists derivatives, where it holds a near-monopoly of the Indian market, and it is now the world's largest exchange for single-stock futures trading on its integrated electronic trading platform.
According to the annual Futures Industry Association's survey of the world's leading derivatives exchanges in 2017, the National Stock Exchange of India was ranked as the world's second-largest derivatives exchange by contract volume, putting it behind the CME Group. Volume at the exchange was 2.4 billion in 2017, up 16.3 percent from the previous year.
The NSE was created in 1992 by a consortium of Indian banks including State Bank of India, Union Bank of India and ICICI Bank but ownership was broadened in 2007 by selling 5 percent stakes each to international investors NYSE Euronext, Goldman Sachs, General Atlantic Partners and Softbank Asian Infrastructure Fund. It began trading the equities and debt in 1994 and launched futures and options trading in 2000. The launch of derivatives helped the NSE to zoom past its rival BSE in the early 2000s, and it now claims an 85 percent market share in equity cash trading and 94 percent in equity derivatives.
The NSE handles nearly five times as many trades as the Bombay Stock Exchange (BSE), its closest rival, and 14 times as many trades as the Multi Commodities Exchange (MCX), according to the 2015 Futures Industry Association volume survey.
The NSE's S&P CNX Nifty index is owned by the India Index Services and Products Ltd. (IISL), which is in turn part-owned by the NSE. The Nifty benchmark consists of 50 stocks across 21 sectors and represented 62.5 percent of the free float market capitalization of the NSE at September 30, 2009. It has been computed on a free-float basis since June 2009 and total traded value of Nifty stocks for the six months to September 30 was about 54 percent of total stock-trading value on the NSE.
- J. Ravichandran, interim CEO and managing director
- S. B. Mathur, chairman
- Ravi Narain, non-executive vice chairman
|Year||Total Annual Volume*||Percent Change|
Partnerships and Intiatives
NSE entered into a significant cross-listing partnership with the CME Group, the world's largest derivatives-exchange operator, in March of 2010, involving benchmark stock indexes in the two countries. Futures contracts on the NSE's benchmark S&P CNX Nifty Index (better known as the Nifty 50) are listed on CME Group, denominated in local currency. In return, the NSE lists the CME Group's S&P 500 and Dow Jones Industrial Averages stock index contracts, denominated in Indian Rupees. The contracts commenced trading on July 19, 2010 along with two new contracts as part of its NSE partnership, the E-mini and E-micro S&P CNX Nifty (Nifty 50) futures.
In July 2010, the exchange launched the India Volatility Index (India VIX) on a real-time basis; it previously only tracked end-of-the-day changes. India VIX is based on the index option prices of the benchmark Nifty. On July 19, 2010 NSE applied with SEBI to start futures and options on the index, after it has been tracked for a suitable period.
- FIA 2017 Annual Volume Survey. Futures Industry.com.
- The Organisation. National Stock Exchange of India.
- What listing of BSE and NSE means for the exchanges and investors. Economic Times of India.
- Proposed stock exchange set to challenge NSE’s near-monopoly. Livemint.com.
- S&P CNX Nifty. NSE.
- Biggest Indian Exchange’s CEO Resigns Just Months Before IPO. Bloomberg.
- National Stock Exchange of India and CME Group Announce Cross-Listing Relationship. PRNewswire-FirstCall.
- Press Release. NSE.
- Press Release. NSE.