The New Indian Stock Exchanges
The Indian stock exchange system is the oldest in the Asian region, dating back to the 1830s with the commencement of trading in banking and cotton shares. India operates a series of stock exchanges. The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the Indian stock exchanges where the bulk of equity trading is carried out, with the volume of shares traded on the NSE almost twice that of the BSE.
The Bombay Stock Exchange was the first stock exchange in India and the Asian region and was established in 1875. More than 5000 companies are listed on BSE making it world’s No. 1 exchange in terms of listed members. BSE’s popular equity index, the S&P BSE SENSEX is India’s most widely tracked stock market benchmark index.
The National Stock Exchange in India was incorporated in 1992 as a tax-paying company, and as a stock exchange the following year. It has several subsidiaries such as the National Securities Clearing Corporation (NSCCL), which provides broker front-end and back end as well as clearing and settlement services, and the India Index Services Limited which provides indices trading services and products for the Indian stock markets. The NSE provides enhanced satellite communication to allow participation in stock trading from over 400 Indian cities.
The Over-the-Counter Exchange in India (OTCEI) is another recent stock exchange which is modelled after the United States NASDAQ and provides trading in over-the-counter instruments, underwriting and market making. It also provides screen-based nationwide stock trading and was the first of the new Indian stock exchanges to provide weekly settlement cycles and trading in shares of companies that are less than three years old.
The MCX Stock Exchange is the most recent Indian stock exchange. It commenced operations in the Currency Derivatives segment on October 7, 2008 under the regulatory framework of Securities & Exchange Board and Reserve Bank of India. The Exchange falls into line with global best practices and regulatory requirements with clearing and settlement being conducted through a separate clearing corporation, MCX-SXAT Clearing Corporation Ltd. At the end of June 2012, MCX-SX had 750 members and participation from 707 towns and cities across India. The Exchange received permissions to deal in Interest Rate Derivatives, Equity, Futures & Options on Equity and Wholesale Debt Segment on July 10, 2012. MCX-SX was granted the status of a “recognised stock exchange” by the Ministry of Corporate Affairs Government of India on December 21, 2012. It received “commencement certificate” from market regulator SEBI for trading in new segments such as Equity, Futures and Options on Equity, Interest Rate Derivatives and Wholesale Debt Market on December 19, 2012.
Traders wishing to trade stocks or indices on any of the new Indian Stock Exchanges can do so with a regulated binary options broker such as Banc De Binary.