market architecture of selected stock exchanges in ... - Gilles Daniel

92.2.2 The National Stock Exchange of IndiaThe National Stock Exchange of India limited (NSE)is located in Mumbai, the financial centre of India.The NSE was incorporated in November 1992 as atax-paying company and was given recognition as a stock exchange in April 1993. Itstarted operations in June 1994 and launched subsequently the Capital MarketSegment in November 1994 as a trading platform for equities, and the Futures andOptions Segment in June 2000 for various derivative instruments.The creation of a second stock exchange, besides the Bombay Stock Exchange, wasdue to inefficiencies in the Indian financial market. Need was felt for betterregulation, discipline, and accountability.Although it was established as a public limited company, the NSE adopted the formof a de-mutualized exchange, hence is a for-profit, tax-paying company, owned by aset of leading financial institutions, banks, insurance companies and other financialintermediaries. 5 As of March 31, 2005 the number of shareholders is 21, all of themcoming from the financial sector (NSE 2005).5 http://www.nseindia.com/, 22/02/2006