RESEARCH PROJECT REPORT

PRESENTATION ON

“ TO STUDY ON THE WORKING OF NATIONAL STOCK EXCHANGE

”

SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE AWARD OF DEGREE OF
M ASTER OF BUSINESS ADMINISTRATION
(2009-2011)

GBTU, LUCKNOW

Prepared By-

Ekta Singh
Roll No. 0921270035

Under the guidance

UNI TED INSTITUTE OF MANAGEMENT, GREATER NOIDA

AFFILIATED From GAUTAM BUDDHA TECHNICAL UNIVERSITY
INTRODUCTION

The National Stock Exchange (NSE) (Hindi: राष्ट्रीय शेअर बाज़ार Rashtriya Śhare Bāzaār) is
a stock exchange located at Mumbai, India. It is set up in the year 1993,is the
largest stock exchange in India . It is the 10th largest in the world in the world by
market capitalization and largest in India by daily turnover and number of trades,
for both equities and derivative trading.

The NSE's key index is the S&P CNX Nifty, known as the NSE NIFTY (National
Stock Exchange Fifty), an index of fifty major stocks weighted by market
capitalisation.

The National Stock Exchange (NSE) operates a nation-wide, electronic market,

offering trading in Capital Market, Derivatives Market and Currency Derivatives
segments including equities, equities based derivatives, Currency futures and
options, equity based ETFs, Gold ETF and Retail Government Securities. Today
NSE network stretches to more than 1,500 locations in the country and supports
more than 2,30,000 terminals.
OBJECTIVE AND SCOPE OF STUDY
 NSE mission is setting the agenda for change in the securities market in India.
The NSE was set up with the main objective of :-

 Establishing a nation wide trading facility for equity, debt instruments.

 Ensuring equal access to investors all over the country through an appropriate
communication network.

 Providing a fair , efficient and transparent securities market to investors using

electronic trading system.

 Enabling shorter settlement cycles and book entry settlement system.

 Meeting the current international standards of securities market.

RESEARCH METHODOLOGY
Research is a common language refers to a search of knowledge. Research is scientific
& systematic search for pertinent information on specific topic, infect research is an art of
scientific investigation. Research Methodology is a specific way to solve problem.

The project is a study where focus is on the following points:-

 To provide reliable information about NSE function.
 To analyze the growth rate of the organization.
 Analysis of company performance through various segments
 
SOURCE OF DATA
 Data was collected from secondary sources.
 
SECONDARY SOURCES
 Various web sites of stock markets.
 News paper, Book and magazines.
 Published financial data, brokers of security i.e. Indiabools, sher khan, etc  
 Financial research report of government and non-government organizations.
 
ANALYSIS AND INTERPRETATION
 NATIONAL SECURITIES CLEARING CORPORATION LIMITED
 The National Securities Clearing Corporation Ltd. (NSCCL), a wholly owned
subsidiary of NSE, was incorporated in August 1995. It was the first clearing
corporation to be established in the country and also the first clearing corporation in
the country to introduce settlement guarantee.

It was set up with the following objectives:

 to bring and sustain confidence in clearing and settlement of securities;

 to promote and maintain, short and consistent settlement cycles;

 NSCCL commenced clearing operations in April 1996. It has since completed more
than 2400 settlements (equities segment) without delays or disruptions.
 The two modes of settlement are as under:

a. Dematerialised settlement
NSCCL follows a T+2 rolling settlement cycle.
All trades concluded during a particular trading date are settled on a designated
settlement day i.e. T+2 day. In case of short deliveries on the T+2 day in the normal
segment, NSCCL conducts a buy –in auction on the T+2 day itself and the
settlement for the same is completed on the T+3 day, whereas in case of W segment
there is a direct close out.

b. Physical settlement

Limited physical Market : To provide an exit route for small investors holding physical
'Limited Physical Market' (small hares in securities the Exchange has provided a facility
for such trading in physical shares not exceeding 500 shares in the window).
TRADING

NSE introduced for the first time in India, fully automated screen based trading. It
uses a modern, fully computerised trading system designed to offer investors
across the length and breadth of the country a safe and easy way to invest.

The NSE trading system called 'National Exchange for Automated Trading'
(NEAT) is a fully automated screen based trading system, which adopts the
principle of an order driven market.

  Trading System - Market Types

The NEAT system has four types of market. They are:
1) Normal Market
2) Odd Lot Market
3) Auction Market
4) Spot Market
RECOMMENDATION & SUGGESTIONS

 Increased demand for capital market instruments both the retail and the
institutional level, and both for equities and bonds.

 Rapid technological advancement, including in the internet, e-business,

wireless technology, and new software for market participants

 A desire to price explicitly the risk of trading, and if possible to reduce

them.

 Deregulation and liberalization in some of the world’s capital markets.

RECOMMENDATION FOR THE EUROPEAN UNION (EU)

 Legal framework: Set of rules and regulations that regulate market

participants.

 Set the necessary technical mechanism for market operation including

 Listing and disclosure rules

 Trading system

 Clearing & settlement systems

 Selection of member firms

THANK YOU