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What is the difference between BSE and NSE? August 07 2017Stock Market Trading

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What is the difference between BSE and NSE?

There are two major stock exchanges in India namely BSE and NSE. Where BSE stands for Bombay Stock Exchange, NSE stands for National Stock Exchange. A Stock Exchange is generally a market place for free and fair trading of securities, debts and derivatives among investors. BSE being one of the oldest and NSE as one of the advanced electronic trading system have some key differences between them. But before we make any distinction between the two, let’s first try and understand what they individually stand for.

BSE (Bombay Stock Exchange)

Having been established in the year 1875, BSE was known as The Native Share and Stock Brokers Association. Ever since, it has gone from strength to strength in terms of massive pool of investors, daily trade exchanges and quality services. Post independence, it was first recognized by the government of India in 1957, under the Securities Contract Regulation Act, 1956. Though the SENSEX as a first equity index was introduced way back in 1986, the online trading could be started almost a decade later in 1995 known as BOLT (BSE online Trading System). BSE boasts of having a total of 5650 listed companies creating a market capitalization of over 1.68 trillion. And it is ranked 10th biggest stock exchange globally.

NSE (National Stock Exchange)

With ever growing base of investors and to bring about efficiency in trading, first advanced electronic trading system was introduced in the country that came to be known as National Stock Exchange (NSE). Another purpose of introducing NSE was to do away with paper-based settlement system. In 1995, Nifty was kick-started as the main index. Soon after, it grew its network wider, spreading over 2000 cities. Total 1740 companies are listed under NSE that estimates a market capitalization of over 1.5 trillion. And it ranks 11th in the list of global stock exchange giants.

 

Difference between BSE and NSE

1.     Popular Index – Popular Index for BSE is SENSEX while for NSE it is NIFTY.

 

2.     Year of Establishment – BSE was founded in 1875 while NSE was established in 1992.

 

3.     Market Capitalization – Market Capitalization of BSE has over 1.68 trillion US$ whereas NSE has around 1.5 trillion US$.

 

4.     Number of Listed Companies – At present, under BSE total 5650 companies are listed whereas 1740 companies are listed under NSE.

 

5.     Website – Official website of BSE is www.bseindia.com while the official website of NSE is www.nseindia.com

 

6.     Presence – BSE makes its presence felt with its wide network in 400 plus cities while NSE is spread over 2000 cities in India.

 

7.     Global Ranking – BSE is ranked 10th in the global ranking while NSE stands at 11th.

 

Conclusion

It is because of overpowering presence of BSE and NSE, that Mumbai is known as the financial capital of India. They provide a great platform for millions of trader to invest, transact and make a fortune. At Indra Securities, we run training programs for aspiring investors. Here, you can train yourself to be a smart trader or investor. Open your Demat account with Indira Securities to enjoy quality services.

Click here to know more about What is a Demat Account?

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Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Jyoti Singh. Email: compliance@indiratrade.com. Call : 0731-4797275