Question

National Stock Exchange was the first exchange in India to implement electronic or screen-based trading which began its operations in the year

• A. 1998
• B. 2012
• C. 2000
• D. 1994

Hint:

NSE = 1994 launch + electronic trading pioneer in India.

Answer 1

The Correct Option is D

The question tests your knowledge of the history of the National Stock Exchange (NSE) in India, specifically the initiation of electronic or screen-based trading.

The National Stock Exchange of India (NSE) was established to reform the Indian capital market. One of its main objectives was to replace the open outcry system with more efficient, computerized, and electronic trading systems.

Let's examine each option:

• 1998: By this year, NSE had already been operational with electronic trading, having started earlier.
• 2012: Too late to be the starting year for electronic trading on NSE, as the system was already in place.
• 2000: Similar to 1998, this is well after electronic trading began at NSE.
• 1994: This is the correct year. The National Stock Exchange was the first in India to implement electronic trading in 1994, replacing the traditional floor trading system.

Therefore, the correct answer is 1994. This was a landmark development in the Indian stock market, marking a shift towards modern trading systems that enhanced efficiency and transparency.

In conclusion, the implementation of screen-based trading in 1994 played a crucial role in the modernization and globalization of the Indian financial markets.