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January 7, 2022

India celebrates Silver Jubilee of Nifty 50 Index and 20 Years of Derivatives in Indian Capital Markets.

National Stock Exchange of India, NSE

National Stock Exchange of India, NSE

Photo: The National Stock Exchange of India (NSE) Building in Mumbai.

MUMBAI, India, January 6, 2022 — The Nifty 50 Index was launched on April 22, 1996, and has completed 25 successful years. The Index, representing the 50 large capitalized and liquid stocks across 13 sectors, has grown 15 times in 25 years, delivering annualized returns over 25 years of 11.2%.

Nifty 50 Index was the first underlying benchmark on which the first Exchange Traded Fund (ETF) was launched in India. It was also the first Index in National Stock Exchange NSE’s derivatives market. As of November 30, 2021, Assets Under Management (AUM) of passive products tracking the Nifty 50 index were USD 25 billion.

National Stock Exchange of India (NSE) commenced trading in derivatives with the launch of Index Futures benchmarked to Nifty 50 Index on June 12, 2000, in the equity derivatives segment. It was followed by trading in Index Options (also based on Nifty 50 Index) on June 4, 2001, Options on Individual Securities from July 2, 2001, and Futures on Individual Securities from November 9, 2001.

NSE has been the largest derivatives exchange globally for two consecutive years in 2019 and 2020. In addition, the Index options contract on the Nifty 50 Index was the largest traded contract globally for multiple years.

The equity derivatives market has provided a practical risk management framework for investors and has also propelled the growth of the underlying cash equity segment. In the last ten years, volumes in the cash equity segment of stocks available in derivatives have increased by 5.5 times in line with single stock derivatives, which have increased 5.4 times. Availability of products is one of the criteria used by various investors, particularly institutional investors, for the basis of their investment in a security or an asset class in a jurisdiction.

Mr. Piyush Goyal, India’s Minister of Commerce and Industry & Consumer Affairs, was the Chief Guest for this momentous occasion. Mr. Piyush Goyal said: My best wishes to National Stock Exchange on the Silver Jubilee of Nifty 50 Index and 20 years of launching Derivatives.”

Mr. Ajay Tyagi, Securities and Exchange Board of India (SEBI) Chairman said: “NSE has made many important contributions to develop Indian Capital Markets over the years. It has achieved global stature and made a mark worldwide by being the largest derivative exchange globally for two consecutive years - in 2019 and 2020. I urge the exchange to continue its endeavor to be innovative, bring in best global practices to and further build trust of investors and issuers in Indian Capital Markets.”

Mr. Vikram Limaye, MD & CEO, NSE, said: “On behalf of National Stock Exchange, I would like to express my gratitude to the Government of India, Securities Exchange Board of India, and the Reserve Bank of India along with all the stakeholders for their support over the last 25 plus years. As India emerges out of the ongoing pandemic, NSE shall continue to provide a robust platform for raising capital and effective products for risk management. As a frontline regulator, NSE will continue to focus on disciplined market development and what is in the best interests of investors and issuers, and in further strengthening trust in markets.”

National Stock Exchange of India (NSE) is the world’s largest derivatives exchange by trading volume (contracts) as per the statistics maintained by the Futures Industry Association (FIA) for the calendar year 2020. In addition, NSE is ranked 4th in the world in the cash equities by the number of trades as per the statistics maintained by the World Federation of Exchanges (WFE) for the calendar year 2020. NSE was the first exchange in India to implement electronic or screen-based trading. It began operations in 1994 and is ranked as the largest stock exchange in India in terms of total and average daily turnover for equity shares every year since 1995. NSE has a fully integrated business model comprising exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions, and financial education offerings.

Source: National Stock Exchange of India Ltd. (NSE)

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Edited & Posted by the Editor | 1:10 AM | Link to this Post

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