BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) India Market

by Sharoz Dawa | Posted on Tuesday, September 5th, 2017

Bombay Stock Exchange (BSE) and National Stock Exchange (NSE)

Bombay stock exchange and the national stock exchange probably the two renowned stock exchanges in the country. BSE is among the eight biggest stock exchanges in the world regarding transaction volume. The exchange has a nationwide reach with a presence in the 417 cities and towns in India. The systems and process of the exchange are designed to safeguard market integrity and enhance transparency in operations.  Let us know more about the Bombay stock exchange and the objectives and functions of It.

This article is aiming to solve all your queries regarding the topic of BSE ( Bombay stock exchange) and the NSE (National stock exchange).

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich with a rich heritage popularly known as BSE. It was established as  “ The Native Share and Stock Brokers Association “  in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the government role of BSE in the development of the Indian capital market is widely recognised.

Earlier BSE was an association of persons AOP but now it is demutualised, and corporatized entity which is incorporated under the provisions of the companies act 1956. BSE received its certificate of incorporation on 8th August 2005 and certificate of commencement of business on 12th August 2005. The name has been changed to BOMBAY stock exchange.

The operations and dealings of BSE are fully computerised, and thus the auction system of share trading was replaced by screen-based trading known as BOLT ( Bombay online trading system) as in other stock exchange around the world. The BSE Sensex ( sensitive index)  also called the BSE 30 is widely used.

The investors can visit  Bombay Stock Exchange in search of their member broker or sub broker and register them on lie trading worldwide. The exchange provides an efficient and transparent market for trading in securities.  The clearing and settlement functions of the BSE are ISO 9001-2000 certified.

The Bombay stock exchange has launched internet trading system which is – Feb 201 to (or “intending to”) providing an additional facility to the investors to put their orders for purchase or sale of securities using the internet.

The strategic objective of Bombay stock exchange are as follows:

  • To promote, develop and maintain a well-regulated market for dealings in securities.
  • To safeguard the interest of members and the investing public having dealings on the exchange.
  • To promote industrial development in the country through efficient resource mobilisation by way of investment in corporate securities.
  • To establish and develop critical and fair practices in securities transactions.

Management of Bombay Stock Exchange – The exchange is professionally managed under the overall direction of the board of directors., governing body, or executive committee. The board comprises of eminent, professionals, representatives of trading members and the managing director of the exchange. The day to day operations of the exchange are managed by the Managing Director and CEO and an expert management Team of professionals.

National Stock Exchange of India (NSE)

National stock exchange one of the most heard stock exchange in the country but what it is exactly? And how it functions? What are the features lets know more about It?

NSE is an All india level stock exchange. It was incorporated in November 1992. It offers online trading system matching to international standards.

The main features of National Stock Exchange  are as follows

  • It has nationwide coverage. The investor can make dealing through NSEI dealer.
  • NSE is the first stock exchange in the world which uses communication technology for trading its securities. It is fully computerised, screen based and ringless system.
  • It allows the investors to trade their securities from their offices or homes through the network with direct satellite link up.
  • There are transparency dealings. The investor can check the exact price at which their transactions took place.
  • National Stock Exchange is a company promoted BY IDBI, ICCI, LIC and GIC and its subsidiaries, commercial banks. SBI capital market limited.
  • The establishment of the NSE is a major step in upgrading trading facilities for investors and bringing Indian Financial markets in line with international markets.
  • The index of the NSE is called as the Broader 50 share – Nifty.
About the Author Sharoz Dawa

Co-founder & Developer at IAS Paper I am a 20-year-old guy from Mumbai (Maharashtra) currently doing Software Engineering.I love helping people and providing free education. Official Website http://www.sharozdawa.comFacebook

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  1. Hi

    Great articles, thanks for sharing them, though they were really useful.
    Keep up the good work.

    Tim Titchmarsh

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