TKWs Institute of Banking & Finance organised a visit to the National Stock Exchange on the 24th of May 2017. Every student of the PG Diploma batch took advantage of this opportunity and was a part of this enriching event. They were received with warmth and assembled in their seminar room. The session started with them learning about the history of the NSE; it’s working and standing in the current operating exchanges in India.
Our students learnt many important aspects about NSE:
How NSE came into existence?
Trading, before the exchanges were set up, was a highly risky affair. Trading was done using legacy systems. There was no monitoring system, and so no secure trading was possible. To fill in this void, NSE came into existence in 1992. NSE was the first National Exchange to provide a modern, automated screen-based electronic trading system offering an easy trading facility to investors spread across the length and breadth of the country.
About products of NSE
NSE deals in a variety of products like equity, derivatives, debt, bond, etc. The Equities section provides us with an understanding of the equities segment of NSE with Current Market Reports, Historical Data and Product Information. Equity derivative is a class of derivatives whose value is at least partly derived from one or more of the underlying equity securities. Then the interaction provided students with an insight into the daily activities of the equity derivatives market segment on NSE. The two major products of Equity Derivatives are Futures and Options, undoubtedly the most common equity derivatives, which are available on Indices and Stocks.
Debt: The erstwhile Wholesale Debt Market (WDM) segment of the Exchange commenced operations on June 30, 1994. This provided the trading community with its first formal screen-based trading facility for the debt market in the country. It has now been merged under the New Debt Market as the Negotiated Trade Reporting Platform.
Why investor education is important
Usually, trading is done on a customer’s behalf by brokers or sub-brokers, who are authorised by the customer to trade for them using a signed authorisation letter. In the course of trading, signatures are rarely checked or verified but when money is lost then starts an endless list of problems for the customer. To avoid this, the customer should read and understand the clauses of the authorisation agreement before the start of trade. NSE has now started educating the end customer to safeguard them from any such frauds.
Importance of Certifications by NSE:
NCFM has a comprehensive range of modules covering many different ranges in finance. NCFM currently tests expertise in the modules of Financial Markets, Capital Markets, Derivatives, and Mutual Funds, etc. These certifications clarify basics about these subjects and help in further developing mastery in the relevant subjects.
TKWsIBF PG Diploma has integrated NCFM certifications such as Equity Advanced Dealer Module, Derivative Dealer Module, Forex Trader Module. The course design helps students clear 11 such certifications making them readily employable with attractive packages in financial security and financial advisory firms.
The visit wound down with an interactive Questions & Answer Session wherein the students had an opportunity to clarify their doubts and get answers to their queries. The learning experience ended with networking with the staff of NSE.
The NSE visit was a part of the curriculum of TKWsIBF designed to bring practical exposure along with academic depth to the study. The students of the Institute get prepared to face the challenges of the real world with confidence. The visit is a part of the one-year PG Diploma in Banking & Finance. Apart from preparing them for PO exams, the course makes them into job-ready banking & financial professionals.