The National Stock Exchange of India (NSE) was incorporated in 1992 and began operations in 1994 with the goal of bringing transparency to India's equity markets. The government of India played a significant role in its establishment, following the recommendations of the Pherwani committee in 1991.¹
Prior to NSE's inception, the Indian stock market was dominated by the Bombay Stock Exchange (BSE), which was established in 1875. However, the BSE was criticized for its opaque trading practices and lack of regulation. NSE was created to address these issues and provide a more modern, electronic trading platform.
NSE's founders aimed to create a stock exchange that would provide equal access to all market participants, regardless of their location or financial resources. To achieve this, NSE introduced an electronic trading system, which allowed traders to buy and sell securities from anywhere in the country.
Today, NSE is one of the largest stock exchanges in India, with over 2,671 listed companies and a market capitalization of over ₹438.9 lakh crore (approximately $5.13 trillion).
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