
What is NSE and BSE?
The NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) are India’s two major stock exchanges where equities, derivatives, bonds, and other financial instruments are traded.
The BSE, established in 1875, is the oldest stock exchange in Asia in Mumbai. It is well-known for its benchmark index, the SENSEX, which tracks 30 prominent companies listed on the exchange. BSE is recognised for its legacy, vast number of listed companies, and wide investor base.
The NSE, founded in 1992, introduced a fully electronic trading system in India, which helped modernise the country’s financial markets. Its benchmark index is the NIFTY 50, which includes 50 of the largest and most actively traded stocks on the exchange.
Both exchanges operate under the regulatory oversight of SEBI (Securities and Exchange Board of India) and function similarly in terms of listing, trading, and settlement processes. However, the NSE generally sees higher trading volumes and is preferred by many institutional investors due to its advanced technology and faster execution.
In summary, BSE and NSE are central to India’s financial markets, providing platforms for investment, raising capital, and reflecting the health of the economy through their respective indices.
The BSE, established in 1875, is the oldest stock exchange in Asia in Mumbai. It is well-known for its benchmark index, the SENSEX, which tracks 30 prominent companies listed on the exchange. BSE is recognised for its legacy, vast number of listed companies, and wide investor base.
The NSE, founded in 1992, introduced a fully electronic trading system in India, which helped modernise the country’s financial markets. Its benchmark index is the NIFTY 50, which includes 50 of the largest and most actively traded stocks on the exchange.
Both exchanges operate under the regulatory oversight of SEBI (Securities and Exchange Board of India) and function similarly in terms of listing, trading, and settlement processes. However, the NSE generally sees higher trading volumes and is preferred by many institutional investors due to its advanced technology and faster execution.
In summary, BSE and NSE are central to India’s financial markets, providing platforms for investment, raising capital, and reflecting the health of the economy through their respective indices.
May 09, 2025 02:29