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{{Short description|Indian securities marketplace}}
{{pp|small=yes}}
{{Use dmy dates|date=November 2020}}
{{Use Indian English|date=June 2016}}
{{Infobox exchange
|name       = National Stock Exchange of India
|logo       = National Stock Exchange of India (NSE) logo.svg
|image      = IT7A2275 copy (cropped).jpg
|caption    = The National Stock Exchange headquarters in July 2018
|type       = [[Stock exchange]]
|city       = [[Mumbai]], [[Maharashtra]]
|country    = India
|foundation = {{Start date and age|1992}}
|owner      = Various group of domestic and global financial institutions, public and privately owned entities and individuals<ref>{{cite web|url=https://www.nseindia.com/investor-relations/shareholding|title=Shareholding|website=www.nseindia.com}}</ref>
|key_people = {{Unbulleted_list|Girish Chandr Chaturvedi<br />{{small|([[Chairperson]])}}|[[Ashishkumar Chauhan]]<br />{{small|([[Managing director|MD]] & [[Chief executive officer|CEO]])}}}}
|currency   = [[Indian rupee]] ({{INR}})
|listings   = 2,190 (December 2023)<ref>{{cite news |title=All Companies based on Market Capitalisation |url=https://www.nseindia.com/regulations/listing-compliance/nse-market-capitalisation-all-companies |access-date=24 January 2024}}</ref>
|mcap       = {{INRConvert|415.9|t|link=yes}} (May 2024)<ref>{{cite news |title=$4 trillion m-cap! NSE-listed companies' market cap increased 17.5% CAGR |url=https://economictimes.indiatimes.com/markets/stocks/news/4-trillion-m-cap-nse-listed-companies-market-cap-increased-17-5-cagr/articleshow/105703250.cms |access-date=24 January 2024 |work=[[The Economic Times]]}}</ref>
|volume     = 
|indexes    = {{ubl|[[NIFTY 50]]|[[NIFTY Next 50]]|[[NIFTY 500]]|NIFTY Midcap 100|NIFTY Smallcap 100}} 
|homepage   = {{URL|http://www.nseindia.com/}}
|logosize=250px}}
[[File:IT7A2918 copy.jpg|thumb|The National Stock Exchange building in the [[Bandra Kurla Complex]] in [[Mumbai]]]]
[[File:NIFTY 50 Returns Graph.png|400px|thumb|upright|Performance of [[NIFTY 50]] index between 2000 and 2024]] 
[[File:NIFTY Next 50 Returns Graph.png|400px|thumb|upright|Performance of the [[NIFTY Next 50]] index between 2000 and 2024]] 
'''National Stock Exchange of India Limited''' ('''NSE''') is one of the leading [[stock exchange]]s in India, based in [[Mumbai]]. NSE is under the ownership of various financial institutions such as banks and insurance companies. It is the world's largest [[derivatives exchange]] by number of contracts traded{{Efn|Based on the statistics maintained by [[Futures Industry Association]] (FIA), a [[Derivative (finance)|derivatives]] trade body}} and the third largest in cash equities by number of trades{{Efn|As per the statistics maintained by the [[World Federation of Exchanges]] (WFE)}} for the calendar year 2022.<ref>{{cite news |title=NSE maintains its lead as largest global derivatives market for 4th year – Check its rank in equity segment |url=https://www.timesnownews.com/business-economy/markets/nse-maintains-its-lead-as-largest-global-derivatives-market-for-4th-year-check-its-rank-in-equity-segment-article-97428609 |access-date=28 February 2023 |work=Times Now |date=30 January 2023 |language=en}}</ref> It is the [[List of stock exchanges|8th largest stock exchange]] in the world by total [[market capitalization]],<ref name="WFE">{{cite web|url=https://focus.world-exchanges.org/issue/march-2023/market-statistics|title=Market Statistics – March 2023 – World Federation of Exchanges|website=Focus.world-exchanges.org}}</ref> as of May 2024. NSE's flagship index, the [[NIFTY 50]], is a 50 stock index that is used extensively by investors in [[India]] and around the world as a barometer of the Indian capital market. The [[NIFTY 50]] index was launched in 1996 by NSE.<ref>{{cite web|url=https://www.nseindia.com/global/content/about_us/history_milestones.htm |title=History & Milestones|website=Nseindia.com|access-date=23 February 2022}}</ref>

==History==
National Stock Exchange was incorporated in the year 1993 to bring about transparency in the Indian equity markets. NSE was set up at the behest of the [[Government of India]], based on the recommendations laid out by the [[Manohar J. Pherwani|Pherwani committee]] in 1991<ref>{{cite news |title=Pherwani Committee report recommends setting up of NSE in New Bombay |url=https://www.indiatoday.in/magazine/economy/story/19910930-pherwani-committee-report-recommends-setting-up-of-nse-in-new-bombay-814863-1991-09-29 |access-date=28 February 2023 |work=India Today |language=en}}</ref> and the blueprint was prepared by a team of five members (Ravi Narain, Raghavan Puthran, K Kumar, Chitra Sankaran and [[Ashishkumar Chauhan]]) along with R H Patil and [[Suresh Shankar Nadkarni|SS Nadkarni]] who were deputed by IDBI in 1992.<ref name="bourses"/><ref>{{cite news |title=RH Patil: The man who revolutionized Indian stock market |url=https://economictimes.indiatimes.com/markets/stocks/news/rh-patil-the-man-who-revolutionized-indian-stock-market/articleshow/53336864.cms |access-date=28 February 2023 |work=The Economic Times}}</ref> Instead of trading memberships being confined to a group of brokers, NSE ensured that anyone who was qualified, experienced, and met the minimum financial requirements was allowed to trade.<ref>{{Cite news|url=http://www.thehindu.com/business/markets/National-Stock-Exchange-to-file-IPO-document-by-2017/article14404957.ece|title=National Stock Exchange to file IPO document by 2017|author=<!--Not stated-->|work=The Hindu|access-date=2017-02-26|language=en}}</ref>

NSE commenced operations on 30 June 1993 starting with the wholesale debt market (WDM) segment and equities segment on 3 November 1994 .<ref name="india75"/> It was the first exchange in India to introduce an [[Electronic trading platform|electronic trading facility]].<ref>{{cite news |title=NSE vs BSE: Where's the competition? |url=https://www.livemint.com/market/stock-market-news/despite-its-travails-the-nse-towers-over-bse-11658849390923.html |access-date=28 February 2023 |work=mint |date=26 July 2022 |language=en}}</ref> Within one year of the start of its operations, the daily turnover on NSE exceeded that of the [[Bombay Stock Exchange|BSE]].<ref name="bourses">{{cite news |title=NSE and NSDL: Institutions that revolutionised Indian bourses |url=https://indianexpress.com/article/explained/manmohan-singh-indian-economy-indian-rupee-devaluation-nse-nsdl-stock-exchange-bombay-stock-exchange-2924639/ |access-date=28 February 2023 |work=The Indian Express |date=20 July 2016 |language=en}}</ref>

Operations in the derivatives segment commenced on 12 June 2000.<ref name="india75">{{cite news |title=India@75: History of stocks in India |url=https://www.livemint.com/news/india/india75-history-of-stocks-in-india-11660492412764.html |access-date=28 February 2023 |work=Mint |date=15 August 2022 |language=en}}</ref> In August 2008, NSE introduced [[Foreign exchange derivative|currency derivatives]].<ref>{{cite news |last1=Roy |first1=Anup |last2=Laskar |first2=Anirudh |last3=Mohan |first3=Vyas |title=NSE to charge trades in currency derivatives |url=https://www.livemint.com/Home-Page/TSlohUtvuNKds9Ciz6cpYJ/NSE-to-charge-trades-in-currency-derivatives.html |access-date=28 February 2023 |work=mint |date=12 August 2011 |language=en}}</ref>

=== NSE EMERGE ===
{{main|NSE EMERGE}}
NSE EMERGE is NSE's new initiative for [[Small and medium-sized enterprises|Small and medium-sized enterprises (SME)]] & [[Startup company|Startup]] companies in India.<ref>{{cite web|url=https://www.businesstoday.in/markets/company-stock/nse-sme-exchange/story/188197.html|title=NSE launches SME exchange with first listing- Business News|website=businesstoday.in|date=18 September 2012 |access-date=2019-10-07}}</ref> These companies can get listed on NSE without an [[Initial public offering|Initial public offering (IPO)]]. This platform will help SME's & Startups connect with investors and help them with the raising of funds.<ref>{{Cite news|url=https://economictimes.indiatimes.com/small-biz/money/raising-capital-sme-ipo-may-be-a-good-choice-for-small-businesses/articleshow/64231764.cms|title=Raising capital: Why SME IPO may be a good choice for small businesses|date=2019-06-10|work=The Economic Times|access-date=2019-10-07}}</ref> In August 2019, the 200th company listed on NSE's SME platform.<ref>{{cite web|url=https://www.livemint.com/market/stock-market-news/nse-gets-200th-company-listed-on-its-sme-platform-1566484616132.html|title=NSE gets 200th company listed on its SME platform|last=Laskar|first=Anirudh|date=2019-08-22|website=Mint|language=en|access-date=2019-10-07}}</ref>

==Markets==
{{multiple image|perrow=1|total_width=350
| align = right 
| image_style = border:none;
| title = 
| image1 = 
| caption1 = NSE from 2000 to 2020. (Indices [[NIFTY 50]])  
| image2 =
| caption2 = Impact of [[COVID-19]] on Indian stock markets, NIFTY 50 (1 Jan 2020 to 19 May 2020)  
| image3 = 
| caption3 = NSE from 2000 to 2023. (Indices [[NIFTY Next 50]])
}}

The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the launch of index futures on 12 June 2000. The futures and options segment of NSE has made a global mark. In the Futures and Options segment, trading in the NIFTY 50 Index, NIFTY IT index, NIFTY Bank Index, NIFTY Next 50 index, and single stock futures are available. Trading in Mini Nifty Futures & Options and Long term Options on NIFTY 50 are also available.<ref>{{cite web |last1=Sanchit |first1=Taksali |title=Nifty Option Chain |url=https://investiture.in/option-chain/ |website=Investiture.in |publisher=Sanchit |access-date=20 January 2020}}</ref> The average daily turnover in the F&O Segment of the Exchange during the financial year April 2013 to March 2014 stood at {{INRConvert|1.52236|t}}.

On 3 May 2012, the National Stock exchange launched derivative contracts (futures and options) on FTSE 100, the widely tracked index of the UK equity stock market. This was the first of its kind index of the UK equity stock market launched in India. FTSE 100 includes the 100 of largest UK-listed blue-chip companies and has given returns of 17.8 percent on investment over three years. The index constitutes 85.6 per cent of UK's equity market cap.<ref>{{cite web|url=https://www.thehindubusinessline.com/portfolio/technical-analysis/article3436632.ece|title=An opportunity to trade the FTSE-100|first=Yoganand|last=D|website=@businessline|date=19 May 2012 }}</ref>

On 10 January 2013, the National Stock Exchange signed a letter of intent with the Japan Exchange Group, Inc. (JPX) on preparing for the launch of NIFTY 50 Index futures, a representative stock price index of India, on the Osaka Securities Exchange Co., Ltd. (OSE), a subsidiary of JPX.<ref>{{Cite news|date=2013-01-10|title=UPDATE 1–India's NSE, Japan's JPX plan Nifty futures for Osaka|language=en|work=Reuters|first1=Rafael |last1=Nam |first2=Abhishek |last2=Vishnoi|url=https://www.reuters.com/article/india-japan-exchanges-idUSL4N0AF4ZJ20130110|access-date=2023-09-08}}</ref>

Moving forward, both parties will make preparations for the listing of yen-denominated NIFTY 50<ref>{{cite web|url=https://www.nseindia.com/products/content/equities/indices/broad_indices.htm|title=Broad Market Indices|website=Nseindia.com|access-date=23 February 2022}}</ref> On 13 May 2013, NSE launched India's first dedicated debt platform to provide a liquid and transparent trading platform for debt-related products.<ref>{{Cite web|date=2013-05-13|title=NSE launches debt trading platform|url=https://www.thehindubusinessline.com/markets/stock-markets/nse-launches-debt-trading-platform/article64092313.ece|access-date=2023-09-08|website=The Hindu Businessline|language=en}}</ref>

==Market statistics==
* Earlier, the [[Bimal Jalan]] Committee report estimated that barely 3% of India's population invested in the stock market, as compared to 27% in the [[United States]] and 10% in [[China]].<ref>{{cite news|title=Increasing retail investor base: SEBI has a tough job ahead|url=https://www.moneylife.in/article/increasing-retail-investor-base-sebi-has-a-tough-job-ahead/16977.html|access-date=24 April 2018|publisher=Moneylife|date=2 June 2011}}</ref><ref>{{cite book|last1=Jalan|first1=Bimal|title=Jalan Committee report 2010 – Review of Ownership andGovernance of Market Infrastructure Institutions|date=1 November 2010|publisher=SEBI|location=Mumbai|url=https://www.sebi.gov.in/sebi_data/attachdocs/1293692968573.pdf|access-date=24 April 2018}}</ref><ref>{{cite book|last1=Chandrasekhar|first1=C.P.|last2=Mallick|first2=Sarat|last3=A|first3=Akriti|title=The elusive retail investor: How deep can (and should) India's stock markets be?|publisher=SEBI|url=https://www.sebi.gov.in/sebi_data/DRG_Study/elusiveretailinvestor.pdf|access-date=24 April 2018}}</ref><ref>{{cite book|last1=Library of Congress|first1=Federal Research Division|title=FINANCIAL LITERACY AMONG RETAIL INVESTORS IN THE UNITED STATES|date=30 December 2011|publisher=SEC / The library of congress|location=Washington DC|url=https://www.sec.gov/news/studies/2012/917-financial-literacy-study-part2.pdf|access-date=24 April 2018}}</ref> 

* [[The Economic Times]] estimates that as of April 2018, 6 crore (60 million) retail investors had invested their savings in stocks in India, either through direct purchases of equities or through mutual funds.<ref>{{cite news|last1=Thukral|first1=Arun|title=For those who do not make much money in stocks, here's the catch|url=https://economictimes.indiatimes.com/markets/stocks/news/for-those-who-do-not-make-much-money-in-stocks-heres-the-catch/articleshow/63891555.cms|access-date=24 April 2018|work=The Economic Times|date=24 April 2018}}</ref>  

* [[Morgan Stanley]] has noted that the Indian stocks have been through four [[bear markets]] in 25 years, or since foreign investors became actively involved with Indian equities.<ref>{{Cite web |date=2020-03-25 |title=India faced 4 bear markets in 25 years; why this one is different |url=https://www.cnbctv18.com/market/india-faced-4-bear-markets-in-25-years-why-this-one-is-different-5553371.htm |access-date=2024-01-26 |website=CNBCTV18 |language=en}}</ref> [[The Economic Times]] estimate that the Indian stock market sees a bear market on average once every 3 years, similar to the US market. It uses the Nifty 50 index as a reference point and identifies eight 20% drops in the last 25 years.<ref>{{Cite web |last=Bhasin |first=Tinesh |date=2022-12-29 |title=Best Investment Strategies To Survive in a Bear Market |url=https://www.etmoney.com/learn/personal-finance/investment-strategies-to-survive-a-bear-market/ |access-date=2024-01-26 |website=Learn About Investment Tax Saving, and Financial Planning. |language=en-US}}</ref>

* According to [[SEBI]], during FY 2022–23, 73% of [[mutual fund]] units were redeemed within 2 years of investment. Only investments in 3% of the units continued for more than 5 years.<ref>{{Cite web|url=https://www.sebi.gov.in/reports-and-statistics/publications/oct-2022/annual-report-2021-22_63812.html|title=SEBI &#124; Annual Report 2021-22|website=www.sebi.gov.in}}</ref><ref>{{Cite news|url=https://economictimes.indiatimes.com/markets/stocks/news/50-mutual-funds-get-redeemed-within-a-year-is-long-term-investing-dead/articleshow/100464529.cms|title=50% mutual funds get redeemed within a year. Is long-term investing dead?|first=Nikhil|last=Agarwal|newspaper=The Economic Times |date=24 May 2023}}</ref> 

* Another study conducted by the SEBI, approximately 89% of individual [[stock trader]]s in the equity Futures & Options (F&<span class="ltr">O</span>) segment incurred losses during the financial year 2021-22.<ref>{{Cite web|url=https://www.sebi.gov.in/reports-and-statistics/research/jan-2023/study-analysis-of-profit-and-loss-of-individual-traders-dealing-in-equity-fando-segment_67525.html|title=SEBI &#124; Study - Analysis of Profit and Loss of Individual Traders dealing in Equity F&O Segment|website=www.sebi.gov.in}}</ref><ref>{{Cite news|url=https://economictimes.indiatimes.com/markets/stocks/news/sebi-study-suggests-89-pc-retail-traders-in-equity-fo-suffered-losses-in-fy22/articleshow/97322969.cms|title=Sebi study suggests 89% retail traders in equity F&O suffered losses in FY22|newspaper=The Economic Times |date=25 January 2023}}</ref><ref>{{Cite news|url=https://timesofindia.indiatimes.com/business/india-business/9-in-10-derivative-traders-lose-money-sebi-study/articleshow/97335807.cms|title=9 in 10 derivative traders lose money: Sebi study|newspaper=The Times of India |date=26 January 2023}}</ref>

* According to the [[Reserve Bank of India]] report, mutual funds attracted 6% of household savings in FY2023 and less than 1% went into direct equities.<ref>{{Cite web |title=Reserve Bank of India - RBI Bulletin |url=https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=19895 |access-date=2024-04-19 |website=www.rbi.org.in}}</ref><ref name=":0">{{Cite web |title=Mutual funds attract 6% of household savings in FY23, shows RBI data |url=https://www.business-standard.com/markets/mutual-fund/mutual-funds-attract-6-of-household-savings-in-fy23-shows-rbi-data-123092000972_1.html |access-date=2024-04-29 |website=Business Standard}}</ref><ref>{{Cite web |title=Reserve Bank of India - Household Financial Savings |url=https://www.rbi.org.in/Scripts/QuarterlyPublications.aspx?head=Household+Financial+Savings |access-date=2024-04-19 |website=www.rbi.org.in}}</ref> Almost 95% of household savings in India park their money in [[Deposit account|bank deposits]], including [[fixed deposit]], [[provident fund]], [[Public Provident Fund (India)|PPF]], [[life insurance]], and various small savings schemes.<ref>{{Cite web |title=Reserve Bank of India - RBI Bulletin |url=https://www.rbi.org.in/Scripts/BS_ViewBulletin.aspx?Id=19895 |access-date=2024-04-29 |website=www.rbi.org.in}}</ref><ref name=":0" /><ref>{{Cite web |title=Reserve Bank of India - Household Financial Savings |url=https://www.rbi.org.in/Scripts/QuarterlyPublications.aspx?head=Household+Financial+Savings |access-date=2024-04-29 |website=www.rbi.org.in}}</ref>

* According to 2019 SEBI report, "more than 95% Indian households prefer to park their money in bank deposits, while less than 10% opt for investing in mutual funds or stocks.<ref name=":bs01">{{Cite web |title=Indians prefer fixed deposits to equities, MFs for investment: Sebi Survey |url=https://www.business-standard.com/article/pf/indians-prefer-fixed-deposits-to-equities-mfs-for-investment-sebi-survey-117040500977_1.html |access-date=2024-04-29}}</ref> The survey, conducted across urban and rural areas of the country, showed that life insurance was second most preferred investment vehicle, followed by precious metals, post office savings and real estate in the top-five."<ref name=":bs01"/>

==Stakeholders==
The key domestic investors which hold a stake in NSE include [[Life Insurance Corporation]], [[State Bank of India]], [[India Infoline|India Infoline Limited]] and [[Stock Holding Corporation of India Limited]]. Key global investors include Gagil FDI Limited, GS Strategic Investments Limited, SAIF II SE Investments Mauritius Limited, Aranda Investments (Mauritius) Pte Limited, Veracity Investments Limited, Crown Capital Limited and [[Premji Invest|PI]] Opportunities Fund I.<ref>{{cite web |title=NSE Shareholding Pattern (For the quarter ended on December 31, 2022) |url=https://static.nseindia.com//s3fs-public/inline-files/Microsoft%20Word%20-%20SHP_December%202022_0.pdf |access-date=25 March 2023 |website=nseindia.com}}</ref>

== Subsidiaries ==

* [[NSE Indices|NSE Indices Limited]]
* NSE Clearing Limited
* NSE NSEIT
* NSE Infotech Services Limited
* NSE Cogencis Information Services Ltd
* NSE IFSC Clearing Corporation Limited (NICCL), or simply NSE International Clearing
* NSE IFSC Limited, or simply NSE International Exchange
* NSE Investments Limited
* NSE Data & Analytics
* NSE Academy Limited<ref>{{Cite web |title=Group Companies |url=https://www.nseindia.com/national-stock-exchange/our-group |access-date=30 March 2023 |website=NSE}}</ref>

==Financial literacy==

NSE has collaborated with several universities like [[Gokhale Institute of Politics & Economics]] (GIPE) - Pune, [[Bharati Vidyapeeth Deemed University]] (BVDU) - Pune, [[Guru Gobind Singh Indraprastha University]] - Delhi, [[RV University]]<ref>{{Cite web|url=https://www.telegraphindia.com/edugraph/news/nse-academy-limited-collaborates-with-rv-university-for-post-graduate-certification-program/cid/1975236|title=NSE Academy Limited collaborates with RV University for Post Graduate Certification Program-date=25 October 2023}}</ref> - Bangalore, the [[Ravenshaw University]] of Cuttack and [[Punjabi University]] - Patiala, among others to offer MBA and BBA courses. NSE has also provided mock market simulation software called NSE Learn to Trade (NLT) to develop investment, trading, and portfolio management skills among the students.<ref>{{Cite news|url=http://www.thehindu.com/news/cities/Visakhapatnam/nse-to-spread-financial-literacy/article7993802.ece|title=NSE to spread financial literacy|last=Patnaik|first=Santosh|work=The Hindu|access-date=2017-02-26|language=en}}</ref> The simulation software is very similar to the software currently being used by the market professionals and helps students to learn how to trade in the markets. NSE also conducts online examinations and awards certification, under its Certification in Financial Markets (NCFM) programs.<ref>{{Cite news |date=29 November 2012 |title=NSE ties with deemed University to offer pg diploma in financial markets |work=EduTech |url=http://www.edu-leaders.com/content/nse-ties-deemed-university-offer-pg-diploma-financial-markets |url-status=dead |archive-url=https://web.archive.org/web/20130311143734/http://www.edu-leaders.com/content/nse-ties-deemed-university-offer-pg-diploma-financial-markets |archive-date=11 March 2013}}</ref> NSE has set up NSE Academy Limited to further financial literacy.

At present, certifications are available in 46 modules, covering different sectors of financial and capital markets, both at the beginner and advanced levels. The list of various modules can be found at the official site of NSE India. In addition, since August 2009, it has offered a short-term course called NSE Certified Capital Market Professional (NCCMP).<ref>{{Cite web |title=Home |url=http://www.puneeducation.in/NCFMBhandarkar-Road-Pune |website=NCFM(Bhandarkar Road, Pune)|archive-url=https://web.archive.org/web/20121122060836/http://www.puneeducation.in/NCFMBhandarkar-Road-Pune |archive-date=22 November 2012 }}</ref>

==Criticism and controversies==
{{Expand section|date=January 2024}}

===Market manipulation===
{{See also|1992 Indian stock market scam|Harshad Mehta|Ketan Parekh}} 
The Indian stock exchanges BSE and NSE have witnessed several corruption scandals.<ref>{{cite news | url=https://economictimes.indiatimes.com/markets/stocks/news/how-indias-trading-queen-and-mystery-guru-engulfed-nse-in-scandal/articleshow/90343226.cms?from=mdr | title=How India's trading queen and mystery guru engulfed NSE in scandal | newspaper=The Economic Times }}</ref><ref>{{cite news | url=https://economictimes.indiatimes.com/markets/stocks/news/the-fall-of-nse-corruption-or-hubris/articleshow/69154289.cms | title=The fall of NSE: Corruption or hubris? | newspaper=The Economic Times | last1=Rangan | first1=MC Govardhana }}</ref><ref>{{cite news | url=https://www.reuters.com/article/idINIndia-53153120101125 | title=BSE Sensex drops as corruption scandal weighs | newspaper=Reuters | date=25 November 2010 }}</ref><ref>{{cite web | url=https://www.businesstoday.in/latest/corporate/story/sebi-penalises-bse-nse-for-laxity-in-karvy-fraud-case-329647-2022-04-13 | title=SEBI penalises BSE, NSE for 'laxity' in Karvy fraud case | date=13 April 2022 }}</ref><ref>{{cite news | url=https://www.business-standard.com/article/markets/trading-queen-and-mystery-guru-strange-tale-engulfs-nse-in-scandal-122032100123_1.html | title=Trading 'queen' and mystery guru: Strange tale engulfs NSE in scandal | newspaper=Business Standard India | date=21 March 2022 }}</ref><ref>{{cite web | url=https://www.ndtv.com/india-news/national-stock-exchange-case-who-will-invest-in-india-if-scams-like-this-happen-judge-asks-cbi-in-stock-exchange-manipulation-case-2812478 | title="Who'll Invest in India if Scams Like This Happen?": Judge in NSE Case }}</ref><ref>{{cite web | url=https://www.financialexpress.com/market/cbi-arrests-former-nse-ceo-chitra-ramkrishna-in-co-location-scam-case/2452419/ | title=Chitra Ramkrishna arrested; CBI grills former NSE CEO in co-location scam after SEBI's mysterious yogi report }}</ref><ref>{{cite news | url=https://economictimes.indiatimes.com/markets/stocks/news/how-indias-trading-queen-and-mystery-guru-engulfed-nse-in-scandal/articleshow/90343226.cms?from=mdr | title=How India's trading queen and mystery guru engulfed NSE in scandal | newspaper=The Economic Times | access-date=11 January 2023 | archive-date=11 January 2023 | archive-url=https://web.archive.org/web/20230111193659/https://economictimes.indiatimes.com/markets/stocks/news/how-indias-trading-queen-and-mystery-guru-engulfed-nse-in-scandal/articleshow/90343226.cms?from=mdr | url-status=live }}</ref><ref>{{cite news | url=https://economictimes.indiatimes.com/markets/stocks/news/the-fall-of-nse-corruption-or-hubris/articleshow/69154289.cms | title=The fall of NSE: Corruption or hubris? | newspaper=The Economic Times | last1=Rangan | first1=MC Govardhana | access-date=11 January 2023 | archive-date=11 January 2023 | archive-url=https://web.archive.org/web/20230111193659/https://economictimes.indiatimes.com/markets/stocks/news/the-fall-of-nse-corruption-or-hubris/articleshow/69154289.cms | url-status=live }}</ref><ref>{{cite news | url=https://www.reuters.com/article/idINIndia-53153120101125 | title=BSE Sensex drops as corruption scandal weighs | newspaper=Reuters | date=25 November 2010 | access-date=11 January 2023 | archive-date=11 January 2023 | archive-url=https://web.archive.org/web/20230111193700/https://www.reuters.com/article/idINIndia-53153120101125 | url-status=live }}</ref><ref>{{cite web | url=https://www.businesstoday.in/latest/corporate/story/sebi-penalises-bse-nse-for-laxity-in-karvy-fraud-case-329647-2022-04-13 | title=SEBI penalises BSE, NSE for 'laxity' in Karvy fraud case | date=13 April 2022 | access-date=11 January 2023 | archive-date=21 September 2022 | archive-url=https://web.archive.org/web/20220921192656/https://www.businesstoday.in/latest/corporate/story/sebi-penalises-bse-nse-for-laxity-in-karvy-fraud-case-329647-2022-04-13 | url-status=live }}</ref><ref>{{cite news | url=https://www.business-standard.com/article/markets/trading-queen-and-mystery-guru-strange-tale-engulfs-nse-in-scandal-122032100123_1.html | title=Trading 'queen' and mystery guru: Strange tale engulfs NSE in scandal | newspaper=Business Standard India | date=21 March 2022 | access-date=11 January 2023 | archive-date=21 September 2022 | archive-url=https://web.archive.org/web/20220921232719/https://www.business-standard.com/article/markets/trading-queen-and-mystery-guru-strange-tale-engulfs-nse-in-scandal-122032100123_1.html | url-status=live }}</ref><ref>{{cite web | url=https://www.ndtv.com/india-news/national-stock-exchange-case-who-will-invest-in-india-if-scams-like-this-happen-judge-asks-cbi-in-stock-exchange-manipulation-case-2812478 | title="Who'll Invest in India if Scams Like This Happen?": Judge in NSE Case | access-date=11 January 2023 | archive-date=22 September 2022 | archive-url=https://web.archive.org/web/20220922044155/https://www.ndtv.com/india-news/national-stock-exchange-case-who-will-invest-in-india-if-scams-like-this-happen-judge-asks-cbi-in-stock-exchange-manipulation-case-2812478 | url-status=live }}</ref><ref>{{cite web | url=https://www.financialexpress.com/market/cbi-arrests-former-nse-ceo-chitra-ramkrishna-in-co-location-scam-case/2452419/ | title=Chitra Ramkrishna arrested; CBI grills former NSE CEO in co-location scam after SEBI's mysterious yogi report | access-date=11 January 2023 | archive-date=22 September 2022 | archive-url=https://web.archive.org/web/20220922022110/https://www.financialexpress.com/market/cbi-arrests-former-nse-ceo-chitra-ramkrishna-in-co-location-scam-case/2452419/ | url-status=live }}</ref> At times, the [[Securities and Exchange Board of India]] (SEBI) has barred several individuals and entities from trading on the exchanges for [[Market manipulation|stock manipulation]], especially in [[Market liquidity|illiquid]] [[small cap company|smallcaps]] and [[penny stocks]].<ref>{{cite web |last1=Sreedhar |first1=Vidya |title=Rs 144 crore wrongful profit! Sebi finds stock manipulation in 5 smallcaps |url=https://economictimes.indiatimes.com/markets/stocks/news/sebi-bars-135-entities-from-market-on-alleged-share-manipulation-in-5-smallcaps/articleshow/101167757.cms |website=The Economic Times |access-date=24 August 2023 |date=21 June 2023}}</ref><ref>{{cite news |title=Sebi ban pinches penny stocks |url=https://www.business-standard.com/article/markets/sebi-ban-pinches-penny-stocks-105102601049_1.html |access-date=24 August 2023 |work=Business Standard}}</ref><ref>{{cite news |title=SEBI Cracks Down on Misuse of Penny Stocks |url=https://thewire.in/business/penny-stocks-bogus-claims-sebi |access-date=24 August 2023 |work=The Wire}}</ref><ref>{{cite news |title=I-T Department, SEBI begin crackdown on penny stock firms in PMO-led push |url=https://www.moneycontrol.com/news/business/markets/i-t-department-sebi-begin-crackdown-on-penny-stock-firms-in-pmo-led-push-2442315.html |access-date=24 August 2023 |work=Moneycontrol |date=20 November 2017 |language=en}}</ref><ref>{{cite news |last1=Rampal |first1=Nikhil |title=Pump & dump: How SEBI caught Arshad Warsi & others 'manipulating' stock prices in 'finfluencer' scheme |url=https://theprint.in/business/pump-dump-how-sebi-caught-arshad-warsi-others-manipulating-stock-prices-in-finfluencer-scheme/1413718/ |access-date=24 August 2023 |work=ThePrint |date=3 March 2023}}</ref><ref>{{cite news |title=Sebi bans FIIs, brokers for GDR manipulation |url=https://timesofindia.indiatimes.com/business/india-business/sebi-bans-fiis-brokers-for-gdr-manipulation/articleshow/10072999.cms |access-date=24 August 2023 |work=The Times of India |date=22 September 2011}}</ref><ref>{{cite news |title=Fight against black money: Sebi bars 59 entities for evading taxes |url=https://www.hindustantimes.com/business/fight-against-black-money-sebi-bars-59-entities-for-evading-taxes/story-kRhJVKW9JTtpN8frb0fO8I.html |access-date=24 August 2023 |work=Hindustan Times |date=20 August 2015 |language=en}}</ref><ref>{{cite news |title=Sebi goes after companies rigging share prices |url=https://www.businesstoday.in/magazine/markets/story/sebi-bans-239-entities-individuals-for-rigging-share-prices-53892-2015-08-12 |access-date=24 August 2023 |work=Business Today |date=12 August 2015 |language=en}}</ref>

===Market operators illegal activity=== 
Market operators continue to operate in the Indian stock market, albeit within a regulatory framework aimed at ensuring transparency and fairness. Market operators are individuals or entities that actively engage in buying and selling securities to influence their prices for profit. They operate through various strategies, such as arbitrage, [[Short (finance)|short selling]], [[high-frequency trading]], [[front running]], [[Churning (finance)|churning]], [[Scalping (trading)|scalping]], [[wash trading]], spoofing, and layering, often leveraging sophisticated technology and large capital. Regulatory bodies like the Securities and Exchange Board of India (SEBI) oversee market activities to curb malpractices such as [[insider trading]], price rigging, and [[market manipulation]]. SEBI has implemented measures, including surveillance systems, to detect and penalize unethical practices. Despite these regulations, market operators exploit loopholes to gain an edge, necessitating continuous vigilance and regulatory updates. Market operators in India often use the "[[pump and dump]]" strategy, despite strict regulations against such practices. The "pump and dump" scheme involves artificially inflating the price of a stock (pump) through false or misleading positive statements. Once the price has been significantly raised, the operators then sell off their holdings (dump) at the inflated prices, leading to a sharp price decline and substantial losses for other investors who bought in at the higher prices. Their activities have continued to impact market volatility, liquidity, and price discovery, playing a significant role in the dynamics of the Indian stock market.<reF>Uppal, Jamshed Y., and Inayat U. Mangla. “Market Volatility, Manipulation, and Regulatory Response: A Comparative Study of Bombay and Karachi Stock Markets.” The Pakistan Development Review, vol. 45, no. 4, 2006, pp. 1071–83. {{JSTOR|41260669}}. Accessed 30 May 2024.</ref><ref>Goel, A., Tripathi, V. and Agarwal, M. (2021), "Market microstructure: a comparative study of Bombay stock exchange and national stock exchange", Journal of Advances in Management Research, Vol. 18 No. 3, pp. 414-442. {{doi|10.1108/JAMR-06-2020-0109}}</ref><ref>https://www.researchgate.net/profile/Chakrapani-Chaturvedula/publication/311446941_The_Effectiveness_of_Trade_for_Trade_Segment_as_a_Surveillance_Effort_to_Prevent_Price_Manipulation_Evidence_from_India/links/58f7a2094585158d8a6c176e/The-Effectiveness-of-Trade-for-Trade-Segment-as-a-Surveillance-Effort-to-Prevent-Price-Manipulation-Evidence-from-India.pdf</reF><ref>{{cite journal | url=https://www.emerald.com/insight/content/doi/10.1108/JEFAS-04-2021-0040/full/html | doi=10.1108/JEFAS-04-2021-0040 | title=Testing the market efficiency in Indian stock market: Evidence from Bombay Stock Exchange broad market indices | date=2022 | last1=Elangovan | first1=Rajesh | last2=Irudayasamy | first2=Francis Gnanasekar | last3=Parayitam | first3=Satyanarayana | journal=Journal of Economics, Finance and Administrative Science | volume=27 | issue=54 | pages=313–327 | hdl=10419/289641 | hdl-access=free }}</ref><ref>Prabu, A.E., Bhattacharyya, I. & Ray, P. Impact of monetary policy on the Indian stock market: Does the devil lie in the detail?. Ind. Econ. Rev. 55, 27–50 (2020). {{doi|10.1007/s41775-020-00078-2}}</ref>

===NSE co-location scam===
{{Main|NSE co-location scam}}

On 8 July 2015, Sucheta Dalal wrote an article on [[Moneylife]] alleging that some NSE employees were leaking sensitive data related to high-frequency trading or co-location servers to a select set of market participants so that they could trade faster than their competitors. NSE alleged defamation in the article by Moneylife. On 22 July 2015, NSE filed a {{INRConvert|1|b}} suit against the publication.<ref>{{cite web|title = NSE files Rs 100-cr suit against Moneylife|url = http://indianexpress.com/article/business/business-others/nse-files-rs-100-cr-suit-against-moneycontrol/|website = The Indian Express|date = 2015-07-22|access-date = 2015-10-19}}</ref> However, on 9 September 2015, the Bombay High Court dismissed the case and fined NSE {{INRConvert|5|m}} in this defamation case against Moneylife.<ref>{{cite web|title = Court fines NSE Rs 50 lakh in defamation case against Moneylife|url = http://www.livemint.com/Consumer/bSbicKbebuaIg9cirU7aYJ/Court-fines-NSE-Rs50-lakh-in-defamation-case-against-Moneycontrol.html|website = livemint.com/|date = 9 September 2015|access-date = 2015-10-19}}</ref> The High Court asked NSE to pay {{INRConvert|150|k}} to each journalist Debashis Basu and [[Sucheta Dalal]] and the remaining {{INRConvert|4.7|m}} to two hospitals. The [[Bombay High Court]] has stayed the order on costs for a period of two weeks, pending the hearing of the appeal filed by NSE.<ref>{{cite news|url=https://economictimes.indiatimes.com/markets/stocks/news/bombay-high-court-stays-order-imposing-rs-50-lakh-cost-on-nse/articleshow/49043716.cms|title=Bombay High Court stays order imposing Rs 50 lakh cost on NSE|newspaper=The Economic Times}}</ref>

The board also passed orders against 16 individuals including former managing directors and CEOs Ravi Narain and [[Chitra Ramkrishna|Chitra Ramakrishna]] ordering them to disgorge 25% of their salaries during that period along with interest. All money is to be paid into the Investor protection and education fund. These individuals have also been debarred from the markets or holding any position in a listed company for a period of five years.<ref>{{Cite news|url=https://economictimes.indiatimes.com/markets/stocks/news/sebi-bars-nse-from-securities-market-for-6-months-in-co-location-case/articleshow/69117458.cms|title=Sebi bars NSE from accessing securities market for 6 months in co-location case|date=2019-05-01|work=The Economic Times|access-date=2019-05-01}}</ref>

== See also ==
{{div col|small=yes}}   
* [[List of companies listed on the National Stock Exchange of India]] 
* [[Economy of India]] 
* [[List of stock exchanges]] 
* [[Bombay Stock Exchange]]
* [[Stock market crashes in India]] 
* [[List of stock market crashes and bear markets]] 
* [[Mutual funds in India]] 
* [[Trading day]] 
* [[Insider trading]] 
* [[Risk management]] 
* [[Financial risk management]] 
* [[Market manipulation]]
* [[Muhurat trading]] 
* [[Clause 49]] 
* [[Securities and Exchange Board of India]]
{{Div col end}}

==Notes==
{{Notelist}}

==References==
{{Reflist|30em}}

==Further reading== 
{{Refbegin|30em}}  
* {{cite book|title=Multivariate Analysis to Get an Estimate of the Indian Stock Market Nifty Index|author=Rawlin, R.|isbn=978-3-6560-6385-8|year=2011|publisher=GRIN Verlag}} 
* {{cite book|title=The Indian Financial System: Markets, Institutions And Services, 2/E|isbn=978-8-1775-8562-9|year=2007|publisher=Pearson Education}}
* {{cite journal|title = Estimating Long-term Volatility on National Stock Exchange of India|journal = Procedia Economics and Finance|volume =32|pages = 574–579|year = 2015|issn = 2212-5671|doi = 10.1016/S2212-5671(<span class="ltr">15</span>)01434-3|author = Ramona Birău and Jatin Trivedi|doi-access = free}} 
* Ganeshaiah, K. N. “Has the Behaviour of the Stock Market Been Affected by the Scam? — A Statistical Analysis.” [[Current Science]] 63, no. 7 (1992): 345–47. {{JSTOR|24095453}}.
* D., Sumathi, Stock Price Volatility in National Stock Exchange of India (2018). International Journal of Research in Economics and Social Sciences (IJRESS), December 2018, Available at {{SSRN|3319625}} 
* Kumar, G. and Misra, A.K. (2020), "Long run commonality in Indian stocks: empirical evidence from national stock exchange of India", Journal of Indian Business Research, Vol. 12 No. 4, pp. 441-458. {{doi|10.1108/JIBR-09-2016-0091}}
* {{cite book|title=The Scam: Who Won, who Lost, who Got Away|author=Basu, D. and Dalal, S.|isbn=978-8-1859-4410-4|lccn=93902443|year=1993|publisher=UBS Publishers' Distributors}} 
* {{cite book|title=Bulls, Bears and Other Beasts (5th Anniversary Edition): A Story of the Indian Stock Market|author=Nair, S.|isbn=978-9-3907-4257-8|year=2021|publisher=Pan Macmillan}} 
* Goel, A., Tripathi, V. and Agarwal, M. (2021), "Market microstructure: a comparative study of Bombay stock exchange and national stock exchange", Journal of Advances in Management Research, Vol. 18 No. 3, pp. 414-442. {{doi|10.1108/JAMR-06-2020-0109}} 
{{Refend}}

==External links==
{{Commons category|National Stock Exchange of India}}
* {{Official website|http://www.nseindia.com/}}

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