Difference Between NSE and BSE

By : Neha Dhyani

Updated : May 13, 2022, 12:57

The stock exchange markets in India provide a platform where investors and traders can deal in various securities. Among these, the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are the leading platforms with maximum trading. However, many people feel that they are essentially the same, even though there are many points of Difference Between NSE and BSE.

What Is BSE?

The Bombay Stock Exchange is located in Mumbai city and is among the oldest and first stock exchanges to emerge in Asia. At the time of its formation, the stock exchange went by The Native Share and Stock Brokers Association. The benchmark index of the BSE, Sensex, was introduced in 1986, and it formed a base to identify the top 30 companies that operated on the exchange across a total of 10 sectors. The stock exchange also holds several other indexes, including BSE100, BSE500, BSE200, BSE Metal, BSE Pharma, BSE FMCG, and more.

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What Is NSE?

The National Stock Exchange commenced its operations in 1994. At first, the exchange only started with a wholesale operation in the debt market, after which it also launched dealings in the cash segment of the market. From 1995 to 1996, the platform launched trading and settlement of transactions in the form of dematerialized securities.

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Difference Between NSE and BSE

Points of Difference

Bombay Stock Exchange (BSE)

National Stock Exchange (NSE)

Introduction

It is the oldest stock exchange in India.

Although it is a comparatively newer stock exchange, it is currently the largest one in the country. With the introduction of a digital interface to conduct online trading transactions, the platform has become the face of electronic trading.

Year of founding

1875

1992

Benchmark

Sensex 30

NIFTY 50

Global Ranking

10th in top exchanges

11th in top exchanges

Introduction of electronic trading system

Started in 1995

Started in 1992

Recognition as a stock exchange

The year 1957

The year 1993

Instruments traded

Equity, mutual funds, debt instruments, currencies, and derivatives

Equity, equity derivatives, and debt and currency derivatives

Vision

Emerge as the premier Indian Stock Exchange with best-in-class global practice in technology, products innovation, and customer service

Continue to be a leader, establish a global presence, and facilitate the financial well-being of people.

Number of companies included in the benchmark

30

50

 

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FAQs on the Difference Between NSE and BSE

Q:1 Elucidate the Difference Between NSE and BSE in terms of key indices.

The Difference Between NSE and BSE in terms of key indices, At NSE, some of the notable indices include NIFTY Next 50, NIFTY Midcap 150, NIFTY Smallcap 250, and NIFTY Mid Smallcap 400. The counterparts at BSE include BSE Metal, BSE SMLCAP, BSE Auto, BSE Pharma, BSE PSU, and more.

Q:2 Explain the Difference Between NSE and BSE in terms of their volume of trades.

The Difference Between NSE and BSE in terms of their volume of trades, The lead in the area of volumes of trade is taken by NSE as it has monopolized the domain, but even though BSE has a longer running period, it still enjoys very low volumes of trading by investors and traders.

Q:3 What is the Difference Between NSE and BSE in terms of SEBI's role.

As such, there is no Difference Between NSE and BSE in terms of regulation by SEBI, as both are currently regulated by the governing authority and fall under the listing of SEBI.

Q:4 What is the Difference Between NSE and BSE in terms of the difference between NIFTY and SENSEX?

Similar to the Difference Between NSE and BSE, NIFTY and Sensex are also different from each other. They are the benchmarks that indicate the momentum of the top stocks in each category of stock exchanges.