Difference between NSE and BSE market

Key Difference: BSE (Bombay Stock Exchange) is India’s oldest stock exchange. NSE (National Stock Exchange) is the largest stock exchange in India in terms measured by daily turnover and number of trades.

BSE and NSE are Stock Exchanges both can be referred as an organized marketplace, can be a corporation or mutual organization; the members of the organization gather in stock exchange to trade company stocks or other securities. This can be done online too. Located on Dalal Street in Mumbai, BSE was established in 1875. BSE has emerged out as one of the leading exchange groups of India. Two major shareholders of the BSE are prominent global exchangers – Deutsche Bourse and Singapore Exchange. As mentioned in wikipedia.org BSE is the first exchange in the world to obtain 9001-2002 certification on its on-line trading system. An index in a stock exchange is basically an indicator to give a general idea about the stocks; whether they have gone up or most of the stocks have gone down. The popular benchmark equity index of BSE is known as S&P BSE SENSEX. SENSEX Index is comprised of 30 of the largest and most actively-traded stocks on the BSE. Previously it was known as SENSEX but after tying up with S&P now it is known as S&P BSE SENSEX. This tying was to use the global rating agency’s brand for its index. BSE’s official website is bseindia.com.

NSE came into existence in 1991 by Government of India on the recommendation of Pherwani Committee. NSE’s key index is called NIFTY and is comprised of 50 of the largest and most active trade stocks (National Fifty). NSE is mutually owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India. Ownership and management operates separately in NSE. NSE covers segments like mutual funds, indices, exchange traded funds, equities etc of the capital market. NSE is the first exchange in the world to use screen based system for trading and thus members can easily access trade opportunities irrespective of being located in various parts of the country as they are connected through a satellite network. NSE’s official website is nseindia.com.

Both are stock exchange markets and are recognized by SEBI. A company can be listed in both BSE and NSE, or only in either one. In case a company is listed in both, the prices of its share value in BSE and NSE can still be different.

Image Courtesy: moneycontrol.com, post.jagran.com