NATIONAL STOCK EXCHANGE
What is NSE?
The National Stock Exchange of India Limited (NSE) is a Mumbai-based stock exchange. It is the largest stock exchange in India and the third largest in the world in terms of volume of transactions.
INTRODUCTION
NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities In July 2007, the NSE had a total market capitalization of 42, 74,509 crore INR making it the second-largest stock market in South Asia in terms of market-capitalization.
HISTORY
The National Stock Exchange of India was promoted by leading financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000.
NSE Milestones
| November 1992 | Incorporation |
| April 1993 | Recognition as a stock exchange |
| May 1993 | Formulation of business plan |
| June 1994 | Wholesale Debt Market segment goes live |
| November 1994 | Capital Market (Equities) segment goes live |
| March 1995 | Establishment of Investor Grievance Cell |
| April 1995 | Establishment of NSCCL, the first Clearing Corporation |
| June 1995 | Introduction of centralised insurance cover for all trading members |
| July 1995 | Establishment of Investor Protection Fund |
| October 1995 | Became largest stock exchange in the country |
| April 1996 | Commencement of clearing and settlement by NSCCL |
| April 1996 | Launch of S&P CNX Nifty |
| June 1996 | Establishment of Settlement Guarantee Fund |
| November 1996 | Setting up of National Securities Depository Limited, first depository in India, co-promoted by NSE |
| November 1996 | Best IT Usage award by Computer Society of India |
| December 1996 | Commencement of trading/settlement in dematerialised securities |
| December 1996 | Dataquest award for Top IT User |
| December 1996 | Launch of CNX Nifty Junior |
| February 1997 | Regional clearing facility goes live |
| November 1997 | Best IT Usage award by Computer Society of India |
| May 1998 | Promotion of joint venture, India Index Services & Products Limited (IISL) |
| May 1998 | Launch of NSE's Web-site: www.nse.co.in |
| July 1998 | |
| August 1998 | CYBER CORPORATE OF THE YEAR 1998 award |
| February 1999 | Launch of Automated Lending and Borrowing Mechanism |
| April 1999 | CHIP Web Award by CHIP magazine |
| October 1999 | Setting up of NSE.IT |
| January 2000 | Launch of NSE Research Initiative |
| February 2000 | Commencement of Internet Trading |
| June 2000 | Commencement of Derivatives Trading (Index Futures) |
| September 2000 | Launch of 'Zero Coupon Yield Curve' |
| November 2000 | Launch of Broker Plaza by Dotex International, a joint venture between NSE.IT Ltd. and i-flex Solutions Ltd. |
| December 2000 | Commencement of WAP trading |
| June 2001 | Commencement of trading in Index Options |
| July 2001 | Commencement of trading in Options on Individual Securities |
| November 2001 | Commencement of trading in Futures on Individual Securities |
| December 2001 | Launch of NSE VaR for Government Securities |
| January 2002 | Launch of Exchange Traded Funds (ETFs) |
| May 2002 | NSE wins the Wharton-Infosys Business Transformation Award in the Organization-wide Transformation category |
| October 2002 | Launch of NSE Government Securities Index |
| January 2003 | Commencement of trading in Retail Debt Market |
| June 2003 | Launch of Interest Rate Futures |
| August 2003 | Launch of Futures & options in CNXIT Index |
| June 2004 | |
| August 2004 | |
| March 2005 | ‘India Innovation Award’ by EMPI Business School, New Delhi |
| June 2005 | Launch of Futures & options in BANK Nifty Index |
| December 2006 | |
| January 2007 | |
| March 2007 | |
| June 2007 |
Innovations by nse
NSE has remained in the forefront of modernization of India's capital and financial markets, and its pioneering efforts include:
- Being the first national, anonymous, electronic limit order book (LOB) exchange to trade securities in India. Since the success of the NSE, existent market and new market structures have followed the "NSE" model.
- Setting up the first clearing corporation "National Securities Clearing Corporation Ltd." in India. NSCCL was a landmark in providing innovation on all spot equity market (and later, derivatives market) trades in India.
- Co-promoting and setting up of National Securities Depository Limited, first depository in India.
- Setting up of S&P CNX Nifty.
- NSE pioneered commencement of Internet Trading in February 2000, which led to the wide popularization of the NSE in the broker community.
- Being the first exchange that, in 1996, proposed exchange traded derivatives, particularly on an equity index, in India. After four years of policy and regulatory debate and formulation, the NSE was permitted to start trading equity derivatives three days after the BSE.
- Being the first exchange to trade ETFs (exchange traded funds) in India.
- NSE has also launched the NSE-CNBC-TV18 media centre in association with CNBC-TV18, a leading business news channel in India.
Indices
NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including:
- S&P CNX Nifty
- CNX Nifty Junior
- CNX 100 (= S&P CNX Nifty + CNX Nifty Junior)
- S&P CNX 500 (= CNX 100 + 400 major players across 72 industries)
- CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200)
Criteria of Listing
NSE plays an important role in helping an Indian companies access equity capital, by providing a liquid and well-regulated market. NSE has about 1016 companies listed representing the length, breadth and diversity of the Indian economy which includes from hi-tech to heavy industry, software, refinery, public sector units, infrastructure, and financial services. Listing on NSE raises a company’s profile among investors in India and abroad. Trade data is distributed worldwide through various news-vending agencies. More importantly, each and every NSE listed company is required to satisfy stringent financial, public distribution and management requirements. High listing standards foster investor confidence and also bring credibility into the markets.
NSE lists securities in its Capital Market (Equities) segment and its Wholesale Debt Market segment
1. Listing on Equities segment
Listing means admission of securities of an issuer to trading privileges on a stock exchange through a formal agreement. The prime objective of admission to dealings on the Exchange is to provide liquidity and marketability to securities, as also to provide a mechanism for effective management of trading.
Listing on NSE provides qualifying companies with the broadest access to investors, the greatest market depth and liquidity, cost-effective access to capital, the highest visibility, the fairest pricing, and investor benefits. NSE trading terminals are now situated in various cities and towns across the length and breath of India.
Securities listed on the Exchange are required to fulfill the eligibility criteria for listing. Various types of securities of a company are traded under a unique symbol and different series.
Eligibility Criteria for Listing of Equities on NSE
An applicant who desires listing of its securities with NSE must fulfill the following pre-requisites:
For Initial Public Offerings (IPOs)
For Securities of Existing Companies
NSE staff welcomes the opportunity to discuss a company’s eligibility to list before a formal application is made. On fulfillment of the eligibility criteria, the company is required to fill in the listing application form.
Eligibility Criteria for Listing
IPOs by Companies
Qualifications for listing Initial Public Offerings (IPO) are as below:
1. Paid up Capital
The paid up equity capital of the applicant shall not be less than Rs. 10 crores * and the capitalisation of the applicant’s equity shall not be less than Rs. 25 crores**
* Explanation 1
For this purpose, the post issue paid up equity capital for which listing is sought shall be taken into account.
** Explanation 2
For this purpose, capitalisation will be the product of the issue price and the post issue number of equity shares. In respect of the requirement of paid-up capital and market capitalisation, the issuers shall be required to include, in the disclaimer clause of the Exchange required to put in the offer document, that in the event of the market capitalisation (Product of issue price and the post issue number of shares) requirement of the Exchange not being met, the securities would not be listed on the Exchange.
2. Conditions Precedent to Listing:
The Issuer shall have adhered to conditions precedent to listing as emerging from inter-alia from Securities Contracts (Regulations) Act 1956, Companies Act 1956, Securities and Exchange Board of India Act 1992, any rules and/or regulations framed under foregoing statutes, as also any circular, clarifications, guidelines issued by the appropriate authority under foregoing statutes.
3. Atleast three years track record of either:
a. The applicant seeking listing; or
b. The promoters****/promoting company, incorporated in or outside India or
c. Partnership firm and subsequently converted into a Company (not in existence as a Company for three years) and approaches the Exchange for listing. The Company subsequently formed would be considered for listing only on fulfillment of conditions stipulated by SEBI in this regard.
For this purpose, the applicant or the promoting company shall submit annual reports of three preceding financial years to NSE and also provide a certificate to the Exchange in respect of the following:
• The company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR).
• The networth of the company has not been wiped out by the accumulated losses resulting in a negative networth
• The company has not received any winding up petition admitted by a court.
****Promoters mean one or more persons with minimum 3 years of experience of each of them in the same line of business and shall be holding at least 20% of the post issue equity share capital individually or severally.
4. The applicant desirous of listing its securities should satisfy the exchange on the following:
a) No disciplinary action by other stock exchanges and regulatory authorities in past three years
The applicant, promoters/promoting company/companies, group companies, companies promoted by the promoters/promoting company/companies have not been in default in payment of listing fees to any stock exchange in the last three years or has not been delisted or suspended in the past, and has not been proceeded against by SEBI or other regulatory authorities in connection with investor related issues or otherwise.
b) Redressal Mechanism of Investor grievance
The points of consideration are:
1) The applicant, promoters/promoting company/companies, group companies, companies promoted by the promoters/promoting company/companies track record in redressal of investor grievances
The applicant’s arrangements envisaged are in place for servicing its investor.
2)The applicant, promoters/promoting company/companies, group companies, companies promoted by the promoters/promoting company/companies general approach and philosophy to the issue of investor service and protection
3) Defaults in respect of payment of interest and/or principal to the debenture/bond/fixed deposit holders by the applicant, promoters/promoting company/companies, group companies, companies promoted by the promoters/promoting company/companies shall also be considered while evaluating a company’s application for listing. The auditor’s certificate shall also be obtained in this regard. In case of defaults in such payments the securities of the applicant company may not be listed till such time it has cleared all pending obligations relating to the payment of interest and/or principal.
c) Distribution of shareholding
The applicant’s/promoting company/companies shareholding pattern on March 31 of last three calendar years separately showing promoters and other groups’ shareholding pattern should be as per the regulatory requirements.
d) Details of Litigation
The applicant, promoters/promoting company/companies, group companies, companies promoted by the promoters/promoting company/companies litigation record, the nature of litigation, status of litigation during the preceding three years period need to be clarified to the exchange.
e) Track Record of Director(s) of the Company
In respect of the track record of the directors, relevant disclosures may be insisted upon in the offer document regarding the status of criminal cases filed or nature of the investigation being undertaken with regard to alleged commission of any offence by any of its directors and its effect on the business of the company, where all or any of the directors of issuer have or has been charge-sheeted with serious crimes like murder, rape, forgery, economic offences etc. ”
Note:
a) In case a company approaches the Exchange for listing within six months of an IPO, the securities may be considered as eligible for listing if they were otherwise eligible for listing at the time of the IPO. If the company approaches the Exchange for listing after six months of an IPO, the norms for existing listed companies may be applied and market capitalisation be computed based on the period from the IPO to the time of listing.
Eligibility Criteria for Listing Securities of Existing Companies listed on other stock exchanges
1. Paid up Capital & Market Capitalisation
1. The paid-up equity capital of the applicant shall not be less than Rs. 10 crores * and the market capitalisation of the applicant’s equity shall not be less than Rs. 25 crores**
Provided that the requirement of Rs. 25 crores market capitalisation under this clause 1(a) shall not be applicable to listing of securities issued by Government Companies, Public Sector Undertakings, Financial Institutions, Nationalised Banks, Statutory Corporations and Banking Companies who are otherwise bound to adhere to all the relevant statutes, guidelines, circulars, clarifications etc. that may be issued by various regulatory authorities from time to time.
or
2. The paid-up equity capital of the applicant shall not be less than Rs. 25 crores * (In case the market capitalisation is less than Rs. 25 crores, the securities of the company should be traded for at least 25% of the trading days during the last twelve months preceding the date of submission of application by the company on at least one of the stock exchanges where it is traded.)
or
3. The market capitalisation of the applicant’s equity shall not be less than Rs. 50 crores. **
or
4. The applicant Company shall have a net worth of not less than Rs.50 crores in each of the three preceeding financial years. The Company shall submit a certificate from the statutory auditors in respect of networth as stipulated above***.
* Explanation 1 for this purpose the existing paid up equity capital as well as the paid up equity capital after the proposed issue for which listing is sought shall be taken into account.
** Explanation 2 the market capitalisation shall be calculated by using a 12 month moving average of the market capitalisation over a period of six months immediately preceding the date of application. For the purpose of calculating the market capitalisation over a 12 month period, the average of the weekly high and low of the closing prices of the shares as quoted on the National Stock Exchange during the last twelve months and if the shares are not traded on the National Stock Exchange such average price on any of the recognised Stock Exchanges where those shares are frequently traded shall be taken into account while determining market capitalisation after making necessary adjustments for Corporate Action such as Rights / Bonus Issue/Split.
*** Explanation 3 Networth means Paid up equity capital + Free Reserves i.e. reserve, the utilization of which is not restricted in any manner may be taken into consideration excluding revaluation reserves – Miscellaneous Expenses not written off – Balance in profit and loss account to the extent not set off.
2. Conditions Precedent to Listing:
The applicant shall have adhered to conditions precedent to listing as emerging from inter-alia, Securities Contracts (Regulations) Act 1956, Companies Act 1956, Securities and Exchange Board of India Act 1992, any rules and/or regulations framed under foregoing statutes, as also any circular, clarifications, guidelines issued by the appropriate authority under foregoing statutes.
3. Atleast three years track record of either:
a. the applicant seeking listing; or
b. the promoters****/promoting company, incorporated in or outside India or
For this purpose, the applicant or the promoting company shall submit annual reports of three preceding financial years to NSE and also provide a certificate to the Exchange in respect of the following:
1. The company has not been referred to the Board for Industrial and Financial Reconstruction (BIFR)
2. The networth of the company has not been wiped out by the accumulated losses resulting in a negative networth.
3. The company has not received any winding up petition admitted by a court.
**** Promoters mean one or more persons with minimum 3 years of experience of each of them in the same line of business and shall be holding at least 20% of the post issue equity share capital individually or severally.
o The applicant should have been listed on any other recognised stock exchange for atleast last three years
o The applicant has paid dividend in atleast 2 out of the last 3 financial years immediately preceding the year in which listing application has been made
or
The applicant has distributable profits (as defined under section 205 of the Companies Act, 1956) in at least two out of the last three financial years (an auditors certificate must be provided in this regard).
Or
The networth of the applicant is atleast Rs. 50 crores******
While considering the profitability / ability to distribute dividend, the non recurring income/extraordinary income shall be excluded from the total income. Further in case of companies where networth criteria is satisfied on account of shares being issued at a premium for consideration other than cash, such cases be referred to the Listing Advisory Committee (LAC) for consideration.
*** Explanation 4.
Networth means: Paid up equity capital plus Reserves excluding revaluation reserve minus Miscellaneous Expenses not written off minus balance in profit and loss account to the extent not set off
"Provided that Clause 4 and Clause 5 shall not be applicable for listing of:
a) Equity shares and securities convertible into equity issued by
i. a banking company including a local area bank (i.e. Private Sector Banks) set up under sub-clause (c) of Section 5 of the Banking Regulation Act, 1949 and which has received license from the Reserve Bank of India or
ii. a corresponding new bank set up under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, State Bank of India Act, 1955 and the State Bank of India (Subsidiary Banks) Act, 1959 (i.e. Public Sector Banks) or
iii. An infrastructure company
(a) whose project has been appraised by a Public Financial Institution or Infrastructure Development Finance Corporation (IDFC) or Infrastructure Leasing and Financial Services Limited (IL&FS)
(b) not less than 5% of the project cost is financed by any of the institutions referred to in clause
(a) above, jointly or severally, irrespective of whether they appraise the project or not, by way of loan or subscription to equity or a combination of both.
b) Securities other than equity shares or securities convertible into equity shares at a later date issued by Government Companies, Public Sector Undertakings, Financial Institutions, Nationalised Banks, Statutory Corporations, Banking Companies and subsidiaries of Scheduled Commercial Banks.”
o The applicant desirous of listing its securities should also satisfy the Exchange on the following:
1. No Disciplinary action has been taken by other stock exchanges and regulatory authorities in the past three years
The applicant, promoters/promoting company/companies, group companies, companies promoted by the promoters/promoting company/companies have not been in default in payment of listing fees to any stock exchange in the last three years or has not been delisted or suspended in the past and has not been proceeded against by SEBI or other regulatory authorities in connection with investor related issues or otherwise.
2. Redressal mechanism of Investor grievance
The points of consideration are:
§ The applicant, promoters/promoting company/companies, group companies, companies promoted by the promoters/promoting company/companies track record in redressal of investor grievances
§ The applicant’s arrangements envisaged are in place for servicing its investor
§ The applicant, promoters/promoting company/companies, group companies, companies promoted by the promoters/promoting company/companies general approach and philosophy to the issue of investor service and protection
§ Defaults in respect of payment of interest and/or principal to the debenture/bond/fixed deposit holders by the applicant, promoters/promoting company/companies, group companies, companies promoted by the promoters/promoting company/companies shall also be considered while evaluating a company’s application for listing. The auditor’s certificate shall also be obtained in this regard. In case of defaults in such payments, the securities of the applicant company may not be listed till such time it has cleared all pending obligations relating to the payment of interest and/or principal.
3. Distribution of shareholding
The applicant company/promoting company/companies shareholding pattern on March 31 of preceding three years separately showing promoters and other groups’ shareholding pattern should be as per the regulatory requirements.
4. Details of Litigation
The applicant, promoters/promoting company/companies, group companies, companies promoted by the promoters/promoting company/companies litigation record, the nature of litigation, status of litigation during the preceding three years need to be clarified to the exchange.
5. Track Record of Director(s) of the Company
In respect of the track record of the directors, relevant disclosures may be insisted upon in the offer document regarding the status of criminal cases filed or nature of the investigation being undertaken with regard to alleged commission of any offence by any of its directors and its effect on the business of the company, where all or any of the directors of issuer have or has been charge-sheeted with serious crimes like murder, rape, forgery, economic offences etc.
6. Change in Control of a Company/Utilisation of funds raised from public
In the event of new promoters taking over listed companies which results in change in management and/or companies utilising the funds raised through public issue for the purposes other than those mentioned in the offer document, such companies shall make additional disclosures (as required by the Exchange) with regard to change in control of a company and utilisation of funds raised from public.
Note:
a) Where an unlisted company merges with a company listed on other stock exchanges and the merged entity seeks listing on the NSE, the Exchange may grant listing to the merged entity only if the listed company (prior to the merger with the unlisted company) meets all the criteria for listing on its own account or the unlisted company meets the requirements for listing on the Exchange, except for the market capitalisation condition, on its own account. In case either of the above conditions are not met then such company may be considered for listing after a minimum period of 18 months or after the publication of two annual reports whichever is later, provided it satisfies the criteria at that point of time.
Listing Procedure of EQUITIES
An Issuer has to take various steps prior to making an application for listing its securities on the NSE. These steps are essential to ensure the compliance of certain requirements by the Issuer before listing its securities on the NSE. The various steps to be taken include:
- Approval of Memorandum and Articles of Association
- Approval of draft prospectus
- Submission of Application
- Listing conditions and requirements
In case company fulfils the criteria, they have to send the following information for further processing:
1. A brief note on the promoters and management.
2. Company profile.
3. Copies of the Annual Report for last 3 years.
4. Copies of the Draft Offer Document.
5. Memorandum & Articles of Association.
Listing Fees of EQUITIES
The listing fees depend on the paid up share capital of your Company:
| Particulars | Amount (Rs.) |
| Initial Listing Fees | 7,500 |
| Annual Listing Fees | |
| Of Rs.1 crore | 4,200 |
| Above Rs.1 crore and up to Rs.5 crores | 8,400 |
| Above Rs.5 crores and up to Rs.10 crores | 14,000 |
| Above Rs.10 crores and up to Rs.20 crores | 28,000 |
| Above Rs.20 crores and up to Rs.50 crores | 42,000 |
| Above Rs.50 crores | 70,000 |
Companies which have a paid up capital of more than Rs. 50 crores will pay additional listing fees of Rs. 1400 for every increase of Rs. 5 crores or part thereof in the paid up share/debenture capital.
2. Listing on Wholesale Debt Market (WDM) segment
Listing
All Government securities and Treasury bills are deemed to be listed automatically as and when they are issued. Other securities, issued publicly or placed privately, could be listed or admitted for trading, if eligible, as per rules of the Exchange by following prescribed procedure.
Certain securities like Treasury Bills and other securities issued by Government of India and certain Corporate and PSU debt securities available in demat form are eligible for Repo. Every security in the trading system is given a symbol representative of the security.
The market capitalisation of the securities on the WDM segment has been increasing steadily. The segment has also seen a marked increase in the number of securities available for trading other than the traditional instruments like Govt. securities and T-bills.
Eligibility Criteria For Listing OF WHOLESALE Debt Market (WDM) segment:
| Issuer | Eligibility Criteria for Listing | |
| | Public Issue | Private Placement |
| Public Sector Undertaking:
| As applicable to corporates | As applicable to corporates |
| Statutory Corporation under Special Act of Parliament/State Legislature, Local bodies / authorities:
| As applicable to PSUs | As applicable to corporates |
| Financial Institutions u/s 4A of Companies Act. , 1956 including Industrial Development Corporations:
| Eligible | Credit rating |
| Banks:
| Eligible | Credit rating |
| Corporates :
(Networth in case of unlisted companies) | Eligible | Credit rating |
| Infrastructure Companies:
| Eligible | Credit rating |
| Mutual Fund Units: Any SEBI registered Mutual Fund/ Scheme: Investment objective to invest predominantly in debt or Scheme is traded in secondary market as Debt instrument. | Eligible | Eligible |
An Issuer shall ensure compliance with SEBI circulars issued on regulating the listing of privately placed debt instruments and are reproduced below.
Procedure and Conditions for Listing of Wholesale Debt Market (WDM) segment
1. All Listing are subject to compliance with Byelaws, Rules and other requirements framed by the Exchange from time to time in addition to the SEBI and other statutory requirements.
2. The Issuer of security proposed for listing has to forward an application in the format prescribed in Annexure I of this booklet.
3. Every issuer, depending on the category and type of security has to submit along with application, such supporting documents/information as specified in Annexure I of this booklet and as prescribed by the Exchange from time to time.
4. On getting in-principle consent of the exchange the issuer has to enter into a listing agreement in the prescribed format under its common seal.
5. Upon listing, the Issuer has to comply with all requirements of law, any guidelines/directions of Central Government, other Statutory or local authority.
6. The Issuer shall also comply with the post listing compliance as laid out in the listing agreement and shall also comply with the rules, bye-laws, regulations and any other guidelines of the Exchange as amended from time to time.
7. Listing on WDM segment does not imply a listing on CM segment also or vice versa.
8. If the equity shares of an issuer are listed on other stock exchanges but not listed on Capital Market segment of the Exchange, though eligible, then the debt securities of the said issuer will not be permitted to be listed on the WDM segment.
9. The Exchange reserves the right to change any of the requirements indicated in this booklet / document without prior notice
Listing Fees Wholesale Debt Market (WDM) segment
The listing fees depend on the issue size:
| Particulars | Amount (Rs.) |
| Initial Listing Fees | 7,500 |
| Annual Listing Fees | |
| Of Rs.1 crore | 2,100 |
| Above Rs.1 crore and up to Rs.5 crores | 4,200 |
| Above Rs.5 crores and up to Rs.10 crores | 7,000 |
| Above Rs.10 crores and up to Rs.20 crores | 14,000 |
| Above Rs.20 crores and up to Rs.50 crores | 21,000 |
| Above Rs.50 crores | 35,000 |
Issuers which have applied for listing of issue size more than Rs. 50 crores would be charged an additional listing fees of Rs. 700 for every increase of Rs. 5 crores or part thereof in the issue size (in Rs.) subject to a maximum of Rs. 50,000/-.
Annual listing fee payable by an Issuer is limited to a maximum of Rs. 7.50 lacs.
NSE Group CONSISTS of:
1) National Securities Clearing Corporation Ltd. (NSCCL) The National Securities Clearing Corporation Ltd. (NSCCL), a wholly owned subsidiary of NSE, was incorporated in August 1995. It was set up to bring and sustain confidence in clearing and settlement of securities; to promote and maintain, short and consistent settlement cycles; to provide counter-party risk guarantee, and to operate a tight risk containment system. NSCCL commenced clearing operations in April 1996.
NSCCL carries out the clearing and settlement of the trades executed in the Equities and Derivatives segments and operates Subsidiary General Ledger (SGL) for settlement of trades in government securities. It assumes the counter-party risk of each member and guarantees financial settlement. It also undertakes settlement of transactions on other stock exchanges like, the Over the Counter Exchange of India.
NSCCL has successfully brought about an up-gradation of the clearing and settlement procedures and has brought Indian financial markets in line with international markets.
2) NSE.IT Ltd.
NSE.IT, a 100% subsidiary of National Stock Exchange of India Limited (NSE), is the information technology arm of the largest stock exchange of the country. A leading edge technology user, NSE houses state-of-the-art infrastructure and skills. NSE.IT possesses the wealth of expertise acquired in the last six years by running the trading and clearing infrastructure of largest stock exchange of the country. NSE.IT is uniquely positioned to provide products, services and solutions for the securities industry. There has been a long felt need for top-of-the-line products, services and solutions in the area of trading, broker front-end and back-office, clearing and settlement, web-based trading, risk management, treasury management, asset liability management, banking, insurance etc. NSE.IT's expertise in these areas is the primary focus. The company also plans to provide consultancy and implementation services in the areas of Data Warehousing, Business Continuity Plans, Stratus Mainframe Facility Management, Site Maintenance and Backups, Real Time Market Analysis & Financial News over NSE-Net, etc.
NSE.IT is an Export Oriented Unit with STP and plans to go global for various IT services in due course. In the near future the company plans to release new products for Broker Back-office Operations and enhance NeatXS / Neat iXS to support Straight through Processing on the net.
3) India Index Services & Products Ltd. (IISL)
India Index Services and Products Limited (IISL), a joint venture between NSE and CRISIL Ltd. (formerly the Credit Rating Information Services of India Limited), was set up in May 1998 to provide a variety of indices and index related services and products for the Indian capital markets. It has a consulting and licensing agreement with Standard and Poor's (S&P), the world's leading provider of investible equity indices, for co-branding equity indices.
IISL provides a broad range of services, products and professional index services. It maintains over 80 equity indices comprising broad-based benchmark indices, sectoral indices and customised indices. Many investment and risk management products based on IISL indices have been developed in the recent past, within India and abroad. These include index based derivatives traded on NSE and Singapore Exchange (SIMEX) and a number of index funds.
4) National Securities Depository Ltd. (NSDL)
In order to solve the myriad problems associated with trading in physical securities, NSE joined hands with the Industrial Development Bank of India (IDBI) and the Unit Trust of India (UTI) to promote dematerialisation of securities. Together they set up National Securities Depository Limited (NSDL), the first depository in India.
NSDL commenced operations in November 1996 and has since established a national infrastructure of international standard to handle trading and settlement in dematerialised form and thus completely eliminated the risks to investors associated with fake/bad/stolen paper.
5) DotEx International Limited
"The data and info-vending products of the National Stock Exchange are provided through a separate company DotEx International Ltd., a 100% subsidiary of NSE, which is a professional set-up dedicated solely for this purpose."
Companies listed on nifty fifty are as follows
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