The incorrect objective of NSE is:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Meeting only local benchmarks and standards.
Option (1) Meeting only local benchmarks and standards. — Not an objective of NSE (Correct). NSE aimed at international benchmarks and standards. It was set up to bring trading in India up to world level, not to stay local.
Option (2) Providing a fair securities market using electronic trading system. — An objective of NSE (Incorrect). Trading on screen through a computer network shows every price to every investor. This makes the market fair and transparent.
Option (3) Enabling shorter settlement cycle — An objective of NSE (Incorrect). A shorter settlement cycle means money and securities change hands sooner after a trade, which lowers risk.
Option (4) Establishing a nationwide trading facility for all the types of securities. — An objective of NSE (Incorrect). Investors in every part of the country get equal access through one network.
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): “OBJECTIVES OF NSE NSE was set up with the following objectives: a. Establishing a nationwide trading facility for all types of securities.” “OBJECTIVES OF NSE … c. Providing a fair, efficient and transparent securities market using electronic trading system. |