What are some of the benefits of listing stocks in the stock exchange?

Once a stock is listed, it can be freely traded on the stock exchange. Let us look at some of the benefits of listing stocks on the exchange.

Comprehensive marketplace

NSE and the BSE offer comprehensive coverage of the Indian capital markets across asset classes, including equity, fixed income and derivative securities. It 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.

Scale of operations

The scale and breadth of NSE's and the BSE’s products and services, its sustained leadership positions across multiple asset classes in India it's leadership positions in trading volumes help to attract additional participants to the exchange, which in turn results in more efficient price discovery. Their trading technology and risk management framework offers faster and automated execution of orders, which contributes to reduced impact costs for large trade orders.

Visibility

The trading system provides high level of trade and post-trade information. The best 5 buy and sell orders are displayed on the trading system and the total number of securities available for buying and selling is also displayed. This helps the investor to know the depth of the market. Further, corporate announcements, results, corporate actions etc. are also available on the trading system.

Unprecedented reach

NSE and BSE have a pan-India, high-speed network, which supports more than lakhs of terminals through VSAT-based connectivity, leased line terrestrial-based connectivity and multiprotocol label switching transactions on the exchange.

Settlement Guarantee

NSE and the BSE have a dedicated clearing corporation that assumes the credit risk of each party to the trade, which is the risk that a clearing member defaults on its obligations in respect of the trade.

Broadcast facility for corporate announcements

The NSE and BSE network is used to disseminate information and company announcements across the country. Important information regarding the company is announced to the market through the Broadcast Mode on the website. Corporate developments such as financial results, book closure, announcements of bonus, rights, takeover, mergers etc. are disseminated across the country thus minimizing scope for price manipulation or misuse.

Trade statistics for listed companies

Listed companies are provided with monthly trade statistics for all the securities of the company listed on the Exchange.