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

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

MUMBAI, India, Jan. 6, 2022 /PRNewswire/ — The Nifty 50 Index was launched on April 22, 1996 and has completed 25 successful years. The Index, which represents 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 and was also the first Index in NSE’s derivatives market. As on Nov 30, 2021, Assets Under Management (AUM) of passive products tracking Nifty 50 index were USD 25 billion.

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. This was followed by the introduction of 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 and the Index options contract on the Nifty 50 Index was the largest traded contract globally for multiple years.

The equity derivatives market has provided an effective risk management framework for investors and has also propelled the growth of the underlying cash equity segment. In the last 10 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 derivatives 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. 

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

Shri Ajay Tyagi, SEBI Chairman said: “NSE has made many important contributions over the years for the development of Indian Capital Markets. It has achieved global stature and made a mark world-wide, by being the largest derivative exchange globally for two consecutive years in a row – in 2019 and 2020. I urge the exchange to continue its endeavour to be innovative, bring in best global practices to and further build trust of investors and issuers in Indian Capital Markets.”

Shri 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 focus on providing a robust platform for raising capital and providing 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.”

About National Stock Exchange of India Limited (NSE):

National Stock Exchange of India (NSE) is the world’s largest derivatives exchange by trading volume (contracts) as per the statistics maintained by Futures Industry Association (FIA) for calendar year 2020. NSE is ranked 4th in the world in the cash equities by number of trades as per the statistics maintained by the World Federation of Exchanges (WFE) for 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, based on SEBI data. 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. NSE also oversees compliance by trading, clearing members and listed companies with the rules and regulations of SEBI and the exchange. NSE is a pioneer in technology and ensures the reliability and performance of its systems through a culture of innovation and investment in technology.

For more information, please visit: https://www.nseindia.com

For any clarifications please contact:

Arijit Sengupta – Chief Marketing & Communications Officer

Kumar Kartikey – Chief Manager, Corporate Communication

Priyanka Roy – Manager, Corporate Communication

Email ID: [email protected]

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SOURCE National Stock Exchange of India Ltd. (NSE)

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