Difference Between NSE and BSE | NSE vs BSE

By K Balaji|Updated : September 26th, 2022

The stock exchange markets in India provide a platform where investors and traders can deal in various securities. The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are the leading platforms with maximum trading. However, many people feel they are essentially the same, even though there are many points of difference between NSE and BSE that we will discuss in detail in this article.

NSE and BSE are Asia’s largest stock exchanges after the stock exchanges of Japan and China. The Bombay Stock Exchange was founded in 1875 and is one of Asia's oldest stock exchanges. Currently, Ashishkumar Chauhan is the managing director and CEO of the Bombay Stock Exchange (BSE). On the other hand, National Stock Exchange, founded in 1992, is the biggest stock exchange in India in terms of market capitalization. Read this article thoroughly to learn about the difference between NSE and BSE based on multiple factors along with their meaning and comparison.

Difference Between NSE and BSE

Go through the table below to understand the difference between NSE and BSE in terms of global ranking, electronic trading system, vision, etc. Both are large companies dealing with trade and investment of securities in the open market.

NSE vs BSE PDF

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

In 1957

In 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

Managing Director and CEO

Mr. Ashishkumar Chauhan (appointed in July 2022)

Mr. Ashishkumar Chauhan (term ends in November 2022)

What is NSE and BSE?

After knowing the difference between BSE and NSE, it is also important to understand the basics of NSE and BSE, including their full form, meaning, and operations.

BSE Meaning

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.

NSE Meaning

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.

Summary:

NSE vs BSE

A quick summary of NSE vs BSE differences is listed here:

  • BSE and NSE are the stock exchanges in India which provide an electronic platform for traders and investors to deal with the selling and buying of securities such as shares, derivatives, ETFs, etc.
  • NSE is the biggest stock exchange in India in terms of market capitalization. It was founded in 1992 and recognized as a stock exchange in 1993.
  • NIFTY 50 is the benchmark of the National Stock Exchange, which, out of more than 1600 stocks, tracks the 50 most liquid and largest stocks.
  • BSE is the first stock exchange in Asia, founded in 1875. Its benchmark is SENSEX 30, which tracks down 30 large and top-most companies.

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FAQs on Difference Between NSE and BSE

  • Both NSE and BSE are the stock exchanges in India. BSE stands for Bombay Stock Exchange, and NSE stands for National Stock Exchange. Even though NSE was founded much later than BSE, the volume of trades is a lot higher in it as compared to BSE.

  • NSE is the biggest stock exchange in India which uses advanced technology and deals with a high volume of transactions. On the other hand, BSE is the oldest stock exchange in Asia, offering high-speed trading. It used to follow the paper trading pattern before 1995. In the global stock exchange ranking, BSE ranks in the 10th position, and NSE ranks in the 11th position.

  • NIFTY and Sensex are the benchmarks that indicate the momentum of the top stocks in each category of stock exchanges. Nifty is the stock market index for NSE, and its full form is the National Stock Exchange Fifty, and Sensex (Stock Exchange Sensitive Index) is the stock market index of BSE.

  • Around 5749 companies are listed on BSE, and 1696 companies are listed on NSE. Additionally, there are 30 top-most and highly liquid companies included in the benchmark in BSE and 50 companies listed in NSE.

  • Both BSE and NSE are suitable and easy to understand by beginners. However, which is the better option depends on the kind of investor the person is. If one is a trader who engages himself/herself in daily transactions, NSE will be a better option as it has better volume and liquidity. For seasoned investors, BSE would be a suitable option as there they do not have to worry about daily volume and liquidity.

  • 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.

  • The difference between NSE and BSE in terms of key indices is explained here. 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.

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