Which of the following statements about the National Stock Exchange (N

Which of the following statements about the National Stock Exchange (NSE) of India is/are correct?

  • 1. It was set up in 1990.
  • 2. It was recognized as a stock exchange by SEBI in 1993 and it commenced its operations in 1994.

Select the correct answer using the code given below.

1 only
2 only
Both 1 and 2
Neither 1 nor 2
This question was previously asked in
UPSC CBI DSP LDCE – 2023
The correct answer is B, meaning only statement 2 is correct.
– Statement 1 is incorrect. The National Stock Exchange (NSE) of India was incorporated in 1992 based on recommendations from the Pherwani Committee report of 1991. While discussions and initial steps might have occurred around 1990, its formal establishment year is 1992.
– Statement 2 is correct. NSE received recognition as a stock exchange from SEBI in April 1993. It commenced operations in the Wholesale Debt Market (WDM) segment in June 1994 and in the Equity segment in November 1994.
NSE was established to bring transparency and efficiency to the Indian capital markets through technology and nationwide access. It was a key reform during the early 1990s liberalization period in India.
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