NSE - Functioning
Transparency in an economy is the backbone of any kind of sustainable trading environment. The way the Indian trading environment has evolved over the past decades led to a lop-sided concentration of trading rights into the hands of a few trading groups. Owing to several parameters like License Raj, lack of efficiency and general apathy, the whole system of exchange had become monopolized and there were limited chances of any significant changes. This was the reason why the National Stock Exchange (NSE) was incorporated in 1992 to ensure that the whole equity market and its mechanism in India becomes transparent. Previously the government of India had set up Pherwani Committee to ensure that a streamlined system of setting up a trade exchange is brought into existence. This revolutionized the Indian markets, bringing about a dynamic change that is evident today. Starting from its incorporation in 1992, NSE went ahead and was listed as a stock exchange in 1993. Then NSE entered the wholesale debt market in 1994 and the equity division was launched in the same year.
Being an entity that thrives on the ideals of transparency and accountability, Tradebulls has been at the forefront of incorporating positive changes for the inclusive benefits of all those who are connected with the economic development and financial growth.
NSE: Mumbai Headquarters
Headquartered at Mumbai, NSE holds the distinction of being the first modern, electronic stock exchange in the country. NSE was therefore, the first stock exchange in the country to do away with the earlier system of trading where a select few trading groups monopolized the stock prices. Also NSE eliminated the earlier system of affairs where the trading quotes, stock information, pricing mechanism and the whole procedure of trading was based on paper-system. This meant through the establishment of NSE, the cumbersome and voluminous task of trading procedure was completely revamped and the electronic system of NSE simplified everything. This made it easier for everyone who was qualified under SEBI’s guidelines to enter the trading domain and thus, the equity market became highly transparent.
NSDL (National Securities Depository Limited) is another entity in whose setting up, NSE played an important role. This ensured that the equity holdings are safe and secure that the investors use electronic methods to retain or exchange their bonds. As a result of the direct intervention of NSE, the mechanism of trading dynamics became very convenient and secure. This further increased the operational efficiency and led to a sharp decline in the incidents involving fake and fraudulent transactions that existed previously.
The services offered by NSE are categorized as - general equities, indices, Mutual Funds, Initial Public Offerings, corporate bonds (debt), general debt, commodity derivatives, equity derivatives and currency. The electronic trading facility that is the part and parcel of NSE ensures even remote access to the stock data, information and pricing, thereby making the whole system completely accessible, easy to operate and analyze and very simple. Tradebulls, acting on similar lines, as envisioned under the guidelines of SEBI, formulates its functions on grounds of credibility and reliance on accurate data analytics.