National stock exchange

Objectives

Establish nation wide trading Facilitate equal access to investors across the country Provide fairness and transparency in trading Enable shorter settlement cycles

Features

Ring less, nationwide computerised exchange Employs a fully automated screen based trading system Has three segments: the capital market, wholesale market and derivative market Capital market covers equities convertible debentures and retail trade in debt instruments. Securities of nation wide investor base are traded on NSE through trading members The wholesale debt market is for high value transactions in govt. securities, public sector bonds,commercial papers etc., Trading members in capital market segment are connected through VSATs and members in the wholesale market are connected via dedicated high speed lines to the central computer in Bombay

When a trade takes place a trade confirmation slip is generated at the trading members work station The exchange has an order driven system of trading. A trader can place an order in terms of price, time or size. On placing the order an order confirmation slip is generated . The orders are stored in price and time priority. The computer searches for a match and as soon as a match is found the deal is struck. The order is kept pending unless specified otherwise by the trading member On the eight day of trading each member gets a statement showing net position, the amount of cash he has to transfer to the clearing bank and the securities to be delivered to the clearing house

Members are required to deliver securities and cash by the thirteenth and fourteenth day, respectively. The fifteenth day is the pay- out day