NSE and BSE are both stock exchanges in India.
The National Stock Exchange (NSE) is the leading stock exchange in India and the third-largest in the world by the number of trades. It was established in 1992 and is located in Mumbai. NSE offers trading in various securities, including equities, derivatives, and debt instruments. It is known for its electronic trading platform, which allows for high-speed trading and efficient price discovery.
The Bombay Stock Exchange (BSE), on the other hand, is the oldest stock exchange in Asia and the first in India, it was founded in 1875. BSE is also located in Mumbai and is the world's 10th-largest stock exchange by market capitalization. It offers trading in equities, derivatives, and debt instruments.
Both NSE and BSE are regulated by the Securities and Exchange Board of India (SEBI) and they have different index representing the overall performance of the stock market, NSE have Nifty50 and BSE have Sensex. Investors can buy or sell shares on either exchange. Many companies list on both the NSE and BSE, and the prices for the same stock will often be similar across the two exchanges.
How NSE and BSE Works ?
The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) work by connecting buyers and sellers of securities, such as stocks and bonds, in a regulated marketplace. They provide a platform for traders and investors to buy and sell securities in a transparent and orderly manner.
When a company wants to raise capital by issuing shares, it will list its shares on one or both of these stock exchanges. The shares are then made available for purchase by the public. Once a company's shares are listed on an exchange, they can be traded by investors and traders.
The trading process on NSE and BSE is done electronically using trading terminals. Orders to buy or sell shares are matched electronically based on the best available price, and the trade is executed accordingly. The prices of shares are determined by supply and demand in the market.
Both exchanges have a system for surveillance and monitoring of trading activities to ensure compliance with regulations and to prevent insider trading and market manipulation. They also have a settlement process to ensure that trades are settled in a timely and efficient manner, and a clearing corporation that acts as a counterparty to every trade to ensure its settlement.
Both NSE and BSE have their own index representing the overall performance of the stock market, NSE have Nifty50 and BSE have Sensex, which are calculated based on the performance of a select group of stocks listed on the exchange.