How well do you know the National Stock Exchange of India?
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Questions and Answers

What is the flagship index of the National Stock Exchange of India (NSE)?

  • NSE 50
  • NIFTY 50 (correct)
  • NSE 500
  • NIFTY 500
  • What is the trading system called that NSE uses?

  • National Exchange for Automated Trading (NEAT (correct)
  • National Stock Exchange Trading System (NSTS
  • Indian Automated Trading System (IATS
  • Indian Stock Exchange System (ISES
  • When was NSE incorporated?

  • 1990
  • 1992 (correct)
  • 1994
  • 1996
  • Who owns NSE?

    <p>Financial institutions, banks, insurance companies, and other intermediaries</p> Signup and view all the answers

    What is the demutualized model that NSE operates on?

    <p>A model that eliminates conflicts of interest</p> Signup and view all the answers

    What is the world ranking of NSE's derivatives exchange?

    <p>Third largest by number of contracts traded</p> Signup and view all the answers

    What criticism has NSE faced?

    <p>Criticism for market manipulation</p> Signup and view all the answers

    What was the outcome of the defamation suit against Moneylife?

    <p>The case was dismissed by the Bombay High Court</p> Signup and view all the answers

    What was the reason for SEBI's debarment of NSE from accessing markets for six months?

    <p>Unfair trade practices in providing co-location servers</p> Signup and view all the answers

    What was the penalty imposed on former managing directors and CEOs for their involvement in unfair trade practices at NSE?

    <p>They were ordered to disgorge 25% of their salaries during the period</p> Signup and view all the answers

    Study Notes

    • The National Stock Exchange of India (NSE) is a leading stock exchange based in Mumbai.
    • It is the world's largest derivatives exchange by number of contracts traded and the third largest in cash equities by number of trades.
    • NSE's flagship index, the NIFTY 50, is used as a barometer of the Indian capital market.
    • The exchange was incorporated in 1992 to bring transparency to the Indian equity markets.
    • NSE is a for-profit company owned by financial institutions, banks, insurance companies, and other intermediaries.
    • The exchange operates on a demutualized model to eliminate conflicts of interest.
    • NSE's trading system is called National Exchange for Automated Trading (NEAT), which can handle up to 15 million trades per day.
    • NSE offers sector-wise indices and provides financial literacy programs through NSE Academy Limited.
    • The exchange has faced criticism for corruption scandals and allegations of market manipulation.
    • NSE has subsidiaries and initiatives for Small and medium-sized enterprises (SMEs) and startups in India.
    • NSE filed a defamation suit against Moneylife in 2015, which was dismissed by the Bombay High Court in September of that year.
    • NSE was fined ₹5 million in the defamation case and ordered to pay ₹150,000 to each journalist involved and the remainder to two hospitals.
    • The Bombay High Court stayed the order on costs for two weeks while NSE appealed.
    • In May 2019, SEBI debarred NSE from accessing markets for six months.
    • NSE confirmed that the debarment would not impact its functioning but it would not be able to list its IPO or introduce new trading products during the period.
    • SEBI ordered NSE to disgorge Rs 624.9 crores for unfair trade practices in providing co-location servers from 2010-2014.
    • 16 individuals, including former managing directors and CEOs, were ordered to disgorge 25% of their salaries during that period and were debarred from the markets or holding any position in a listed company for five years.
    • All money was to be paid into the Investor Protection and Education Fund.
    • No information was provided on the reason for the defamation suit or the details of the unfair trade practices.
    • The coordinates of NSE's headquarters were provided at the end of the text.

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    Description

    Test your knowledge on India's leading stock exchange with our NSE quiz! From the history of its incorporation to its flagship index and subsidiaries, this quiz covers everything you need to know about NSE. Challenge yourself with questions on NSE's trading system, financial literacy programs, and controversies faced by the exchange. Don't miss out on the opportunity to learn more about NSE and test your understanding of one of the world's largest derivatives exchanges.

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