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

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.

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