NSE PROJECT WORK

GROUP MEMBERS
NISHA JOSHI21 MAYURI46

POOJA SHIVARKAR-

48

MANGESH JHA-

19

KAJAL BARI-

ARIF KHAN-

23

VARSHA -

47

CONTENTS
NSE A NEW IDEOLOGY OBJECTIVE MARKET SEGMENT TECHNOLY NSCCL IISL NSDL LISTING OF SECURITIES IN NSE BENEFITS OF LISTING SYSTEM ELIGIBILITY CRITERIA

INTRODUCTION
Capital market reforms in India have outstripped the process of liberalization in most other sectors of the economy. After the formation of the Securities Market regulator, the Securities and Exchange Board of India (SEBI), attention were drawn towards the inefficiencies of the bourses and the need was felt for better regulation, discipline and accountability. A Committee recommended the creation of a2nd stock exchange in Mumbai called the "National Stock Exchange". Provide investors across the country a single, screen based trading platform, operated through a VSAT network. NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital

NSE has deliver the services to the investors at the cheapest possible cost. NSE is playing the role of a catalytic agent in evolving the best market practices keeping in mind the investors. NSE aggressively pursue policies and practices within a public interest frame work. NSE's nationwide, automated trading system has helped to the computer terminals at different geographical locations in the country and subsequently to the personal computers in the homes of investors and even to mobile investors. It has also providing settlement guarantee for all trades executed on the Exchange. Settlement risks have also been eliminated with NSE's innovative endeavors in the area of clearing and settlement, 1. establishment of the clearing corporation (NSCCL), 2. setting up a settlement guarantee fund (SGF), 3. reduction of settlement cycle, 4. implementing on-line, 5. real-time risk management systems, 6. dematerialization and 7. electronic transfer of securities.

In order to take care of investors interest, it has also created an investors protection fund(IPF), that would help investors who have incurred financial loss due to default of brokers.

OBJECTIVES

OBJECTIVES OF NSE
Establishing a nationwide trading facility for all types of securities; Ensuring equal access to investors all over the country through an appropriate communication network; Providing a fair, efficient and transparent securities market using electronic trading system; Enabling shorter settlement cycles and book entry settlements; Meeting international benchmarks and standards. The broad objective for which the exchange was set up has made it to play a leading role in enlarging the scope of market reforms in securities market in India.

ORGANISATION STRUCTURE OF NSE

OWNERSHIP &MANAGEMENT
NSE is owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries. It is managed by a team of professional managers and the trading rights are with trading members who offer their services to the investors. The Board of NSE comprises of senior executives from promoter institutions and eminent professionals. The Board deals with the broad policy issues, the Executive Committees which include trading members, formed under the Articles of Association and the Rules of NSE for different market segments, set out rules and parameters to manage the day-to-day affairs of the Exchange. The ECs have constituted several committees, like Committee on Trade Related Issues (COTI), Committee on Settlement Issues (COSI)etc., comprising mostly of trading members, to receive inputs from the market participants and implement suggestions which are in the best interest of the investors and the market. The day-to-day management of the Exchange is delegated to the Managing Director and CEO who is supported by a team of professional staff.

MARKET SEGMENTS & PRODUCTS

NSE provides an electronic trading platform for of all types of securities for investors under one roof Equity, Corporate Debt, Central and State Government Securities, T-Bills, Commercial Paper, Certificate of Deposits (CDs), Warrants, Mutual Funds units, Exchange Traded Funds, Derivatives like Index Futures, Index Options, Stock Futures, Stock Options, Futures on Interest Rates etc., which makes it one of the few exchanges in the world providing trading facility for all types of securities on a single exchange. The Exchange provides trading in 3 different segments

Wholesale debt market (WDM)

Provides the trading platform for debt securities which includes State and Central Government securities, T-Bills, PSU Bonds, Corporate Debentures, CPs, CDs etc. NSE launched various products (e.g. FIMMDA-NSEMIBID/MIBOR) owing to the market need. NSE started computing and disseminating the NSE Mumbai Inter-bank Bid Rate (MIBID) and NSE Mumbai Inter-Bank Offer Rate (MIBOR). Owing to the robust methodology of computation of these rates and its extensive use, this product has become very popular among the market participants. NSE also started the dissemination of its yet another product, the Zero Coupon Yield Curve. This helps in valuation of sovereign securities across all maturities irrespective of its liquidity in the market. NSE constructed such an index the, NSE Government Securities Index. This index provides a benchmark for portfolio management by various investment managers and gilt funds.

Capital market (CM) segment and

Offers a fully automated screen based trading system, known as the National Exchange for Automated Trading (NEAT) system. This operates on a price/time priority basis. Various types of securities e.g. equity shares, warrants, debentures etc. are traded on this system. NSE started trading in the equities segment on 3 November 1994 and within a short span of 1 year became the largest exchange in India. Information regarding listing of securities, trading systems & processes, clearing and settlement, risk management, trading statistics etc are available here.

The futures & options (F&O) segment.

NSE provides trading in derivatives instruments like Index Futures, Index Options, Stock Options, Stock Futures and Futures on interest rates.

Though only four years into its operations, the futures and options segment of NSE has made a mark for itself globally.
In the Futures and Options segment, trading in Nifty and CNX IT index and 53 single stocks are available.

TECHNOLOGY

TECHNOLOGY
Providing the services at the cheapest possible cost. It believes that technology provides the competitive edge and ensure timeliness and satisfaction in customer service. NSE stresses on innovation and sustained investment in technology. NSE is the first in the world to use satellite communication technology. Its trading system, called National Exchange for Automated Trading (NEAT), is a state of the art client server based application. Information is stored in an in-memory database to achieve minimum response time and maximum system availability. NSE has been continuously undertaking capacity to effectively meet the requirements of increased users and associated trading loads. NSE has also put in place NIBIS (NSE's Internet Based Information System)for on-line real-time dissemination of trading information. NSE has established a disaster back-up site at Chennai along with its entire infrastructure, including the satellite earth station and the high-speed optical fiber link with its main site at Mumbai.

FAMILY OF NSE

NSCCL
National Securities Clearing Corporation Ltd. (NSCCL), was incorporated in August 1995 and commenced clearing operations in April1996. It was the first to provide notation/settlement guarantee. It was set up to to promote and maintain short and consistent settlement cycles; to provide counter-party risk guarantee, and to operate a tight risk containment system. It carries out the clearing and settlement in the equities and derivatives segments Operates a Subsidiary General Ledger (SGL) for settling trades in government securities. It has tied up with ,Canara Bank, HDFC Bank, IndusInd Bank, ICICI Bank, UTI Bank, Bank of India, IDBI Bank and Standard Chartered Bank for funds settlement Introduced the facility of direct payout to clients account on both the depositories

India Index Services and Products Limited (IISL)

A joint venture of NSE and Credit Rating Information Services of India Limited (CRISIL), was set up in May 1998 to provide indices and index services. It has a consulting and licensing agreement with Standard and Poor's (S&P), the world's leading provider of invest able equity indices, for cobranding equity indices. IISL pools the index development efforts of NSE into a coordinated whole. It focuses upon the indeand CRISILx as a core product. It provides a broad range of products and professional index services. It maintains over 70 equity indices comprising broad-based benchmark indices, sect oral indices and customized indices. Many investment and risk management products based on IISL.

NSDL
Trading in a dematerialized environment, settlement of trades required moving the securities physically from the seller to the buyer, through the seller's broker and buyer's broker, which involved lot of time and the risk of delay . All these added to the costs and delays in settlement and restricted liquidity. To obviate problems and to promote dematerialization of securities, NSE joined hands with UTI and IDBI to set up the first depository in India called the "National Securities Depository Limited" (NSDL). The depository system gained quick acceptance and in a very short span of time it was able to achieve the objective and was also able to get rid of the risks associated with fake/forged/stolen/bad paper.

NSE.IT
NSE.IT Limited, was incorporated in October1999 to provide thrust to NSEs technology edge, with its overall goal of latest technology for optimum business use. It provides the securities industry with technology that ensures transparency and efficiency in the trading, clearing and risk management systems. Provides consultancy services in the areas of data warehousing, internet and business continuity plans. Products launched are NEAT XS, a Computer-To-Computer Link (CTCL) order routing system, NEAT iXS, an internet trading system and Promos, professional brokers back office system. NSE.IT also offers an e-learning ortal, dedicated to the finance sector.

NCDEX
Provide a platform for market participants to trade in wide spectrum of commodity derivatives. NSE joined hand with other financial institutions in India viz., ICICI Bank, NABARD,LIC, PNB, CRISIL, Canara Bank and IFFCO to promote the NCDEX. Currently NCDEX facilitates trading of 37 agro based commodities, 1 base metal and 2 precious metal.

LISTING OF SECURITIES

The stocks, bonds and other securities require listing for providing liquidity to investors. Listing means formal admission of a security to the trading platform of the Exchange. It provides liquidity to investors without compromising for capital and ensures effective monitoring. The issuer wishing to have trading privileges satisfies listing requirements in there Levant statutes and in the listing regulations of the Exchange. It also agrees to pay the listing fees. Issuers who list their securities have to satisfy the corporate governance requirement framed by regulators.

Benefits of Listing on NSE

NSE provides a trading platform that extends across the country. Listing on NSE enables issuers to reach and service investors across the country. NSE being the largest stock exchange in terms of trading volumes. This in turn reduces the cost of trading to the investor. NSE provides unparallel level of trade and post-trade information. reduces scope for price manipulation or misuse. The facility of making initial public offers (IPOs), results in significant reduction in cost and time of issues. NSE's web-site www.nseindia.com provides a link to the web-sites of the companies that are listed on NSE, so that visitors interested can visit that company's web-site. Listed companies are provided with monthly trade statistics for the securities of the company listed on the Exchange. The listing fee is nominal.

MEMBERSHIP ELIGIBILITY CRITERIA

The Exchange stresses on factors such as corporate structure, capital adequacy, track record, education, experience, This ensure quality broking services which enables to build and sustain confidence in the Exchange's operations. The standards stipulated by the Exchange for trading membership are substantially in excess of the minimum statutory requirements as also in comparison to those stipulated by other exchanges in India. The exposure and volume of transactions that can be undertaken by a trading member are linked to liquid assets in the form of cash, bank guarantees, etc. deposited by the member with the Exchange as part of the membership requirements. The trading members are admitted to the different segments of the Exchange subject to the provisions of the Securities Contracts(Regulation) Act, 1956, the Securities and Exchange Board of India Act, 1992, the rules, circulars, notifications, guidelines, etc., issued there under and the bye laws, Rules and Regulations of the Exchange. All trading members are registered with SEBI.

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