Previous Year Question

The National Stock Exchange of India (NSE) was established with the participation of major financial institutions, banks, and insurance companies. Its Promoter Institutions included the State Bank of India (SBI), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), and Industrial Development Bank of India (IDBI).

State Bank of India (SBI) is a major commercial bank in India. It participated in the establishment of NSE as a promoter institution along with other financial institutions.

Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) are major institutions in the insurance sector. They were also among the initial promoter institutions of NSE.

Industrial Development Bank of India (IDBI) was established in 1964 to provide financial assistance for industrial development. It also contributed to the establishment of NSE as a promoter institution.

Major milestones in the establishment and development of NSE:

• November 1992: NSE was incorporated as a company.

• April 1993: It received recognition as a stock exchange from the Securities and Exchange Board of India (SEBI).

• June 1994: Trading commenced in the Wholesale Debt Market.

• November 1994: Trading commenced in the Capital Market, or Equity Trading.

• April 1996: The NIFTY 50 Index was launched.

NSE played an important role in developing fully Automated Screen-Based Trading in India. This enabled investors to trade securities electronically from different locations and improved transparency and efficiency in the market.