You are out vegetable shopping. You want a kilo of onions.There is only one vendor and he refuses to give you an accurate price. Youstill give him some money. He tells you he will be deliver only the followingweek. When it happens, you discover he has mixed some potatoes with the onions.This is not an exact version of how India's stockmarkets functioneduntil 1992, but the inaccuracy is only in degree. From a transparency point ofview, there are few parallels to the National Stock Exchange, or NSE, in India.
Aninstitution that can rightfully claim it changed equity trading in India throughclear rules backed with technology and risk-avoiding margins. "One of the mostcritical changes was that a robust risk management system was set in place,"says Ravi Narain, NSE's Managing Director and CEO. NSE has spread into eventiny towns ushering in a true equity culture and its daily turnover today is inexcess of Rs 10,000 crore.