India’s stock exchanges: BSE and NSE

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NSE was hit by a technical glitch as its bank option segment prices were not reflecting on the terminal linked to the bourse, according to stock brokers.
National Stock Exchange

Stock Exchange is an intermediary that facilitates an investor to purchase and sell shares, bonds, debentures, and other financial instruments. BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) are amongst the most important and vital stock exchanges in India.

Let’s further understand both the stock exchange in-depth. First, we will start with BSE.

  • BSE- Bombay Stock Exchange

It is the oldest stock exchange that was established in 1875 in Dalal street of Bombay now currently known as Mumbai. It was earlier known as “The Native Share and Stock Broker Association”. It is one of the first stock exchanges ever established in India and was recognized as one of the most important stock exchanges under the Securities Contract Regulation Act 1956. The benchmark index of BSE is Sensex that comprises 30 most actively traded and financially strong Indian companies listed on BSE.

  • NSE- National Stock Exchange

The NSE is one of the country’s leading stock exchange and is India’s first digital stock exchange in the country. It was incorporated in 1992 and recognized as the stock exchange in 1993 under the Securities Contract Regulation Act 1956. The benchmark index of NSE is Nifty which represents 50 most highly liquid and traded companies listed on NSE.

Since we got a glimpse of NSE and BSE, let me further understand the differences between the two.

  1. BSE has more than 5000 stocks listed on the stock exchange which is termed as the largest in the world in terms of no stocks.

NSE has fewer stocks of around 1600 stocks which are listed. 

  1. The official index used by NSE is the NIFTY50 while the BSE is SENSEX.
  1. The rank all around the world for BSE is 10th whereas for NSE it is 11th Rank. 
  1. The managing director and CEO of BSE is Mr. Ashish Kumar Chauhan and for NSE it is Mr. Vikram Limaye.
  1. The vision of BSE is to “Emerge as the premier Indian Stock exchange with best – in – class global practice in technology, products innovation, and customer service”. The vision for NSE constitutes “Continue to be a leader, establish a global presence, facilitate the financial well-being of people”. 
  1. BSE facilitates trade-in equity, currencies, debt instruments, derivatives, and mutual funds. But NSE facilitates trading in equity, equity derivatives, debt, and currency derivatives segment.
  1. The BSE index value as on 6th June stood at Rs. 34,287.24 and the NSE index value stood at Rs. 10,142.15.  

Thus, it can be said that both BSE and NSE play an extremely crucial role in providing an effective, formalised, and transparent mechanism to the market participation for trading in diversified trading securities. 

BSE and NSE have a notion of wide existence and caters to consumers all across the globe. The processes have been designed with an aim to provide high-quality services, protect the market ethics, and drive the development of the Indian capital market. 

Anyway, one can invest or trade in securities through any of the stock exchange, NSE or BSE according to one’s own choice and activity.

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