What Is a Stock Exchange? Indian exchanges

stock exchange

A stock exchange is a market where stocks, bonds, and other securities are bought and sold. These exchanges act as a marketplace for investors and traders to buy and sell securities.

Stock exchanges provide a platform for companies to raise capital by issuing shares, and they also provide a way for investors to buy and sell existing shares in those companies.

Some of the most well-known stock exchanges in the world include the New York Stock Exchange (NYSE), the NASDAQ, and the Tokyo Stock Exchange.

The prices of securities traded on a stock exchange are determined by supply and demand forces in the market, and the exchange acts as a facilitator for these transactions.

Stock Exchange

Bombay Stock Exchange (BSE)

BSE stands for Bombay Stock Exchange, which is the oldest stock exchange in Asia. It was established in 1875 and is located in Mumbai, India. BSE is also known as the “Stock Exchange, Mumbai” and “BSE Ltd.”

BSE operates on a trading platform called BSE Trading System (BOLT), which is a fully automated trading system that facilitates faster and more accurate trade execution. BSE has been at the forefront of technology adoption and is the first exchange in India to introduce electronic trading in 1995.

The BSE index, also known as the SENSEX (SENSitive indEX), is one of the most widely tracked stock market indices in the world. The SENSEX consists of 30 of the largest and most actively traded companies listed on the BSE.

BSE offers a wide range of products and services to its members and investors, including:

  • Equity trading
  • Derivatives trading
  • Currency derivatives trading
  • Mutual funds
  • Bond trading
  • IPO (Initial Public Offering)
  • Listing of companies
  • Corporate governance services

BSE is a member of the World Federation of Exchanges (WFE) and the Asia and Oceanic Stock Exchanges Federation (AOSEF). It is also the first exchange in India to obtain certification under ISO 9001:2000 quality management system.

National Stock Exchange (NSE)

NSE stands for National Stock Exchange of India Limited. It is the leading stock exchange in India, both in terms of trading volumes and the number of listed companies. NSE was established in 1992, and it is located in Mumbai, India.

NSE operates on a trading platform called NSE Trading System (NSE-Trader), which is a fully automated screen-based trading system that facilitates faster and more accurate trade execution. NSE has been a pioneer in technology adoption and was the first exchange in India to introduce electronic trading in 1994.

The NSE index, also known as the NIFTY (NIFTY 50), is one of the most widely tracked stock market indices in the world. The NIFTY 50 index consists of 50 of the largest and most actively traded companies listed on the NSE.

NSE offers a wide range of products and services to its members and investors, including:

  • Equity trading
  • Derivatives trading
  • Currency derivatives trading
  • Mutual funds
  • Bond trading
  • IPO (Initial Public Offering)
  • Listing of companies
  • Corporate governance services

NSE is the first exchange in India to be recognized as a Stock Exchange under the Securities Contracts (Regulation) Act, 1956. It is also the first exchange in India to obtain certification under ISO 9001:2000 quality management system.

NSE also has a subsidiary NSE Clearing Limited, which is responsible for clearing, settlement and risk management of all trades executed on NSE.