1. Presentation on National Stock Exchange Submitted To: Prof. Rutvi Umrigar Submitted By: Yogita Chhabhaya Subject: Security Analysis & Investment Management

2. National Stock Exchange (NSE)  The NSE of India became operational in capital market segment on 3 rd November 1994 in Mumbai.  The genesis of the NSE lies in the recommendations of the Pherwani Committee (1991).  Committee pointed out five major defects in the Indian Stock market.

3. Objectives of NSE 1.To establish a nation wide trading facility for equity, debt instruments & hybrids. 2.To ensure equal access to investors all over the country through appropriate communication network. 3.To provide a fair, efficient & transparent securities market to investors using an electronic communication network. 4.To enable shorter settlement cycle & book entry settlement system. 5.To meet current international standards of securities market.

4. Trading at NSE Trading at NSE can be classified under two broad categories: (a) Wholesale debt market and (b) Capital market. Wholesale debt market operations are similar to money market operations - institutions and corporate bodies enter into high value transactions in financial instruments such as government securities, treasury bills, public sector unit bonds, commercial paper, certificate of deposit, etc.

5. There are two kinds of players in NSE: (a) trading members and (b) participants.

6. NSE's markets NSE provides a fully automated screen- based trading system with national reach in the following major market segments:- Equity OR Capital Market Futures & Options OR Derivatives Market Wholesale Debt Market (WDM) Mutual Funds (MF) Initial Public Offerings (IPO)

7. Membership in NSE There are no entry/exit barriers to trading membership. The 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.

8. Benefits to the trading membership of NSE include: 1. access to a nation-wide trading facility for equities, derivatives, debt and hybrid instruments/products, 2. ability to provide a fair, efficient and transparent securities market to the investors, 3. use of state-of-the-art electronic trading systems and technology

9. 4. dealing with an organization which follows strict standards for trading & settlement at par with those available at the top international bourses, 5. a demutualised Exchange which is managed by independent and experienced professionals.

10. Promoters of NSE IDBI,ICICI,IFCI,LIC,GIC,SBI,BOB,Cana ra Bank, Corporation Bank, Indian Bank, Oriental Bank of Commerce, Union Bank of India, Punjab National Bank, Infrastructure Leasing & Financial Services, Stock holding Corporation of India & SBI Capital Market are promoters of NSE.

11. Advantages of NSE Wider Accessibility Screen based trading Non disclosure of the trading members identity Transparent Transactions Matching of orders