A stock exchange is a regulated marketplace where securities are traded between buyers and sellers. It provides an organized and transparent platform for companies to raise capital and investors to trade financial assets. Stock exchanges set standards and provide real-time information to help investors make informed decisions.
Functions of the share market include listing shares, managing trading activity, and working closely with SEBI guidelines to protect against fraudulent activity on both investors as well as the company side.
Let us first begin by understanding what NSE and BSE are, Both NSE and BSE are one of the largest stock exchanges in the country and the NSE is the youngest, while BSE is the oldest stock exchange. Both NSE and BSE play vital roles in the functioning of the financial market of India. You can learn about each entity & the key differences between BSE and NSE.
Here are the key differences between bse and nse. Read the main factors which can differentiate both BSE and NSE stock exchanges of India.
It was founded in 1875, as one of the oldest stock exchanges of Asia.
Founded in 1992, it is one of the biggest stock exchanges in India.
Total Listed Companies
Ranking in the world
BSE ranks in 10th position as one of the largest stock exchanges in the world.
The NSE ranks in 11th position among the world largest stock exchanges in the world.
BSE has around ?266 trillion
NSE has around ?199 trillion
Lower than NSE
BSE transaction charges are 0.003% of total turnover. And for derivatives trading, BSE doesn't charge any fees.
NSE charges a fee of 0.00325% of the total turnover.NSE has fixed its Exchange transaction charges for 0.0019% for futures trading & for Option trading total turnover charges are 0.05%
|Incorporation||It was founded in 1875, as one of the oldest stock exchanges of Asia.||Founded in 1992, it is one of the biggest stock exchanges in India.|
|Benchmark Index||Sensex 30||Nifty 50|
|Total Listed Companies||Around 7400||Around 1790|
|Ranking in the world||BSE ranks in 10th position as one of the largest stock exchanges in the world.||The NSE ranks in 11th position among the world largest stock exchanges in the world.|
|Market Capitalization||BSE has around ?266 trillion||NSE has around ?199 trillion|
|Liquidity||Lower than NSE||Higher liquidity|
|Transaction Charges||BSE transaction charges are 0.003% of total turnover. And for derivatives trading, BSE doesn't charge any fees.||NSE charges a fee of 0.00325% of the total turnover.NSE has fixed its Exchange transaction charges for 0.0019% for futures trading & for Option trading total turnover charges are 0.05%|
The National Stock Exchange of India accounts for over 70% of the total trading volume. With the accessibility, electronic platforms, greater liquidity, and larger number of listings made the NSE popular amongst the traders. However, the Bombay Stock Exchange (BSE) retains its significance as the oldest stock exchange in Asia with a long history. BSE remains the exchange of choice for SMEs and startups looking to list as it has lower compliance requirements. It also offers some trading segments and products not available on NSE.
While NSE dominates market share, BSE is still highly relevant serving a niche of small and medium companies. Investors in India see merit and complementarity in both exchanges co-existing, rather than a winner-takes-all scenario. Both exchanges are actively innovating, diversifying and enabling India's economic growth in their own ways. You can opt for any stock exchanges to trade & enhance your trading through & learn from Kotak Securities & clear out different doubts related to share market.
Therefore, in the above article of difference between BSE and NSE, you can simply conclude that both stock exchanges play complementary roles in developing India’s capital markets infrastructure and enabling economic progress. The NSE has emerged as the leading stock exchange driving volumes and liquidity with its nationwide reach, electronic platforms, and modern governance.
However, the oldest stock exchange BSE holds historical significance and retains its foothold serving small-cap and medium enterprises. Investors in India see value in both exchanges co-existing and competing. The regulatory reforms have created an environment where the exchanges can differentiate yet meet at single shared objectives of investor protection, capital formation and market integrity.
Yes, you can buy stock from one exchange and sell it on another exchange after taking delivery of shares in your Demat account.
The stock price in BSE and NSE is different due to the differences in volume of stocks traded in both stock exchanges.
Nifty 50 refers to the top 50 large cap companies listed in the National Stock exchanges of India.
To buy Nifty 50 Stock you need to open a Demat & Trading account from a registered brokerage company.
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