Interesting Facts about BSE and NSE

The NSE and BSE are the leading stock exchanges of the Indian market. NSE stands for “National Stock Exchange”, and BSE stands for “Bombay Stock Exchange”. There is a huge difference in the volume traded in both the Exchanges resulting in price difference and liquidity.

National Stock Exchange (NSE):

• • National Stock Exchange was established in the year 1992. It bought an electronic exchange system in India that led to the removal of the paper-based system.
  • It was recognized as a stock exchange in the year 1993 under the Securities Contracts (Regulation) Act.
  • The formation of NSDL (National Securities Depository Limited) took place in 1995 to offer a sales platform for transferring and holding the bonds and shares electronically.
  • NSE has a total market capitalization of more than US $3.4 trillion, making it the world’s 10th largest stock exchange as of August 2021.
  • The Nifty 50 Index was launched in 1996. This 50 stock Index is used extensively by Investors in India and across the world as a barometer of the Indian Capital market.
  • The website for NSE is https://www1.nseindia.com
  • “NSE EMERGE” is the NSE’s New Initiative for Small and medium-sized enterprises (SME) & start-up companies in India. These companies can get listed on NSE without an Initial Public Offering (IPO). This platform will help SMEs & start-ups connect with investors and help them in raising funds.

Bombay Stock Exchange (BSE):

• • Bombay Stock Exchange was established in the year 1875 by Premchand Roychand, a Rajasthani Jain businessman. It is one of the oldest and fastest stock exchanges in India. It was formerly known as “The Native Share and Stock Brokers Association”. 
  • After 1957, this exchange was recognized by the Government of India as the premier stock exchange of India under the Securities Contracts Regulation Act.
  • It is the first stock exchange in Asia offering a variety of services such as CDSL depository services (Central Depository Services Limited), market data services, risk management, etc.
  • The website for BSE is http://www.bseindia.com
  • Since 1875, BSE followed a paper trading pattern. The Electronic Exchange system for BSE i.e. BOLT came into existence in 1995.
  • The benchmark Index for BSE is the S&P BSE Sensex index, which was introduced in 1986 as the first-ever equity index of India. It is India’s most widely tracked stock market benchmark index. It is traded internationally on the EUREX, and leading exchanges of the BRCS nations (Brazil, Russia, China, and South Africa).
  • Keeping in mind the vision of Hon’ble Prime Minister of India Shri Narendra Modi, BSE established “India INX” on 30th December 2016. The INX is the first International Exchange of India located at GIFT CITY IFSC in Ahmedabad.
  • In 2017, BSE became the first listed stock exchange in India.
  • BSE Ltd has set up the “BSE SME Platform” that offers an entrepreneur and investor-friendly environment, thus enabling the listing of SMEs from the unorganized sector throughout India into a regulated and organized sector.

Which Stock Exchange should you choose to Trade?

The choice of a stock exchange primarily depends upon the stock you plan to invest in. There are few companies whose shares are listed on both the exchanges i.e. NSE and BSE. There are few companies whose shares are listed only on BSE. The main purpose of both exchanges is to provide financial trading services to investors. Therefore the choice of the stock exchange should depend upon the type of trade you plan to do, the company/stock in which to plan to invest, and the liquidity of the stock.