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.
What is 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
What is 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
Difference between BSE and NSE
Popular Index –
Popular Index for BSE is SENSEX while for NSE it is NIFTY.
Year of Establishment – BSE
was founded in 1875 while NSE was established in 1992.
Market Capitalization –
Market Capitalization of BSE has over 1.68 trillion US$ whereas NSE has around
1.5 trillion US$.
Number of Listed Companies – At
present, under BSE total 5650 companies are listed whereas 1740 companies are
listed under NSE.
Website – Official
website of BSE is www.bseindia.com while
the official website of NSE is www.nseindia.com
Presence – BSE
makes its presence felt with its wide network in 400 plus cities while NSE is
spread over 2000 cities in India.
Global Ranking – BSE is
ranked 10th in the global ranking while NSE stands at 11th.
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
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