National Stock Exchange: Definition, Working, Benefits, Major indices and Top companies

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National Stock ExchangeNSE www.vvstockzone.com

What is National Stock Exchange The National Stock Exchange(NSE), which was founded in 1992, has evolved into the beating heart of India’s stock market. Unlike the traditional chaos of openoutcry systems, the NSE uses cutting-edge electronic trading platforms that are revolutionizing the way financial transactions take place. This modern approach has streamlined transactions and increased transparency and efficiency, making trading more accessible and dependable for all parties involved. The NSE is now a symbol of India’s financial market evolution and innovation.

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Working of NSE a. The NSE operates as a fully automated electronic exchange, facilitating trading in various financial instruments like equities, derivatives, debt, and currency. b. The NSE uses an electronic trading platform known as the National Exchange for Automated Trading (NEAT) system. It enables investors to place buy or sell orders through their brokers. c. There are different types of participants in the NSE, including retail investors, institutional investors, foreign institutional investors (FIIs), market makers, and authorized brokers. d. Investors can place different types of orders, such as market orders, limit orders, stop-loss orders, etc. These orders are matched electronically based on price and time priority. e. The clearing and settlement process is managed by the National Securities Clearing Corporation Limited (NSCCL), a subsidiary of NSE. The NSCCL ensures the timely settlement of trades and reduces counterparty risk. f. Companies wishing to list on the NSE need to comply with the listing requirements. The exchange also facilitates Initial Public Offerings (IPOs), allowing companies to raise capital by issuing new shares to the public.

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Benefits of listing on NSE Boosted Profile Access to Capital Growth Collateral Value of Securities Liquidity Capacity to Uphold Control

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Better Visibility Higher Returns Increased Accountability Increased Exposure Increase in Employee Morale

Major Indices

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Nifty 50 Nifty Next 50 Nifty Bank Nifty IT Nifty Pharma Nifty FMCG Nifty Auto Nifty Metal Nifty Realty Nifty Energy

TOP COMPANIES Reliance TCS HDFC Bank ICICI Bank Infosys Bharti Airtel HUL ITC SBI LIC India www.vvstockzone.com

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