QS Study

Objectives of National Stock Exchange (NSE)

The National Stock Exchange was initially founded in Cincinnati in the year of 1885. It was previously known as the Cincinnati Stock Exchange, but moved to Chicago in 1995 and distorted its name in 2003. The National Stock Exchange can also refer to stock in India or Australia.

NSE was set up with the following objectives:

  1. Establishing a nationwide trading facility for all types of securities.
  2. Ensuring equal access to investors all over the country through an appropriate communication network.
  3. Providing a fair, efficient and transparent securities market using electronic trading system.
  4. Enabling shorter settlement cycles and book entry settlements.
  5. Meeting international benchmarks and standards.

Within a span of ten years, NSE has been able to achieve its objectives for which it was set up. It has been playing a leading role as a change agent in transforming the Indian capital market. NSE has been able to take the stock market to the door step of the investors.