Introduction
Gross Obligation of pay-in amount should be available in the account at the time of pay-in. Upon receipt of pay-in instructions, the trading member has to ensure/fund/recover the DVP I/II account on the Settlement Date. Compliance with the prescribed margin at appropriate times during the trading day. Set up and maintain separate Islamic window trading member terminals.
The disconnection of trading member terminals in case of unsatisfactory surveillance information. Maintain separate files/records with regard to the trade by trade obligation of clients/mutual funds/and lease financing companies. Maintain sufficient margins with the stock exchange for settlements. Publish the consolidated obligation at the end of each settlement or earlier and through the website.
The trading members of stock exchanges provide the core platform for trading in securities. Stock exchanges are the most popular organizations among trading members. Trading in securities became a great platform for wider stakeholder participation.
The introduction of electronic trading brought in the increasing turnover and number of trades. It also helped the brokers to provide various services to customers from a single terminal. Market orders can be entered during the market trading period, are executed at closing price, and are treated as off-market trades. They are available only for the last 15 minutes before the market close.
Market orders are acceptable until the market order deadline. The DVP III Segments are timely trade confirmation at 08:30 hours on trade date. DVP I & DVP II cutoff times are at 11:00 / 12:00 in advance of the proposed settlement date (pay-in dates II – Friday).
Background of the National Stock Exchange (NSE)
According to the Securities Contracts (Regulation) Act, 1956, only those dealers and investors having the certificates of registration issued by SEBI can operate in stock exchanges. They have to be members of the National Stock Exchange of India Ltd. and the minimum required capital that is fixed by SEBI to satisfy the elements of dealer activities not less than 2.5 crores for the Nifty and not less than 2 crores for the other stocks, which results in huge financial discipline concerning risk in NSE clearance and settlements and members. Any member or dealer can be registered at the Nifty and the other stocks with this specified minimum capital.
The names of the trading members who are registered from time to time are communicated by the NSE to the SEBI after getting the certificate of registration in writing. Members are effectively approved by the SEBI to deal with the entire capital-raising and service list.
NSE has transformed the capital markets in India by providing a transparent and efficient trading, clearing, and settlement mechanism. The capital market is one of the most significant institutions in India. It is an essential part of the financial system as it fulfills the need for raising funds for economic development. The most developed capital markets are the securities market, where both debt and equity-related instruments are issued by institutions where transactions take place (exchange) and where prices reflect equities of the present worth of firms.
The National Stock Exchange (NSE) was set up in April 1993 to usher in an era of equal access to investors all over the country and to provide transparency and liquidity to a very large number of stocks and other newer types of matching-buy contracts which allow market participants to gain on the expected future price of the underlying stock or index.
Establishment of NSE
The National Stock Exchange of India Limited (NSE) was established on the 25th of November 1992 by 17 key financial institutions that contribute to the stake and management of the Exchange. These institutions are shareholders of the exchange and represent a perfect example of the major stock promotion institutions in the country. The stock exchange is the largest in India and almost all major and new scrips are traded on that exchange. Conveniently located, the exchange offers good infrastructure facilities.
Vision and Mission
The vision and mission of the National Stock Exchange are outlined in its Annual Report and are as follows: Vision: NSE will strive to become the leading market for financial products with state-of-the-art infrastructure. This will continue to ensure the highest quality of business, which will be a delight to the customers. It will endeavor that its policies, procedures, and performance will be customer-oriented.