Question

The National Stock Exchange was established by which committee?

• A. Mahalanobis Committee
• B. Wanchoo Committee
• C. Pherwani committee
• D. None of these

Answer 1

Answer:

C. Pherwani committee

• The National Stock Exchange ( NSE ) was established by the Pherwani Committee.

• In 1991, the Pherwani Committee, chaired by R.H. Pherwani, recommended establishing a national-level stock exchange to:

1. Provide electronic trading

2. Increase transparency

3. Enhance efficiency

4. Promote competition

• Based on the commitee's recommendations, the National Stock Exchange was set up in 1992 as India's first demutualized electronic exchange.

• Key features:

1. Screen - based trading

2. Automated trading system

3. Nationwide presence

4. Transparency and fairness

• The NSE has played a pivotal role in India's capital market development.

• Other notable committee influencing India's financial markets include:

1. Patel Committee (1984) : Recommended stock market reforms.

2. Abid Hussain Committee (1987) : Suggested capital market liberalization.

3. Narasimham Committee (1991) : Proposed banking sector reforms.