In 1992 _____________ was incorporated to establish a nationwide trading facility for all types of securities.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → National Stock Exchange of India
Option (1) National Stock Exchange of India — Correct. NSE, the most modern and technology-driven exchange, was incorporated in 1992. Its first objective was to set up a nationwide trading facility for all types of securities, through a screen-based system that investors across the country can reach equally.
Option (2) Bombay Stock Exchange Ltd. — Incorrect. BSE is far older. It was established in 1875 and is Asia’s first stock exchange.
Option (3) Securities and Exchange Board of India — Incorrect. SEBI got statutory status in 1992, but it is the regulator of the securities market. It does not provide a trading facility.
Option (4) Discount Finance House of India — Incorrect. DFHI deals in money market instruments such as treasury bills. It is not a stock exchange.
Note: Although the chapter ‘Financial Markets’ was dropped from the NCERT textbooks during rationalisation, it has stayed in the NTA syllabus every year since 2022, except for 2025, and it is part of the syllabus again from 2026. This question is therefore based on the pre-rationalised NCERT, an extract from which is given below.
NCERT (Pre-rationalised Edition): “NATIONAL STOCK EXCHANGE OF INDIA … The National Stock Exchange is the latest, most modern and technology driven exchange. It was incorporated in 1992 and was recognised as a stock exchange in April 1993. …” “OBJECTIVES OF NSE NSE was set up with the following objectives: |