2.1What is NSE (National Stock Exchange)?
1What is it?
The National Stock Exchange of India (NSE) is India’s largest stock exchange by trading volume. It is based in Mumbai and started trading in 1994.
2Why does it exist?
NSE was set up after the 1992 Harshad Mehta scam to bring fully electronic, transparent trading to the whole country, replacing the old system of shouting in a trading hall.
3Stock market example
NSE runs the Nifty 50 index and is the world’s largest derivatives (futures and options) exchange by number of contracts traded. On MojoStox, a plain symbol like RELIANCE means the NSE listing.
4Quick revision
- NSE is India’s largest exchange by volume.
- Started in 1994, fully electronic.
- Runs the Nifty indices.
- Dominates futures and options trading.
5Knowledge check
Q1. When did NSE begin trading?Show answer
1994.
Q2. Which famous index does NSE run?Show answer
The Nifty 50.
Q3. On MojoStox, does "RELIANCE" refer to NSE or BSE?Show answer
NSE. BSE listings carry a ".BO" suffix, like RELIANCE.BO.