The National Stock Exchange (NSE) and BSE (formerly the Bombay Stock Exchange) are financial exchange markets in India where traders can buy and sell securities. Both these markets are based in Mumbai and are the two major stock exchanges in India.
Established in 1992, the National Stock Exchange is the largest in India and the 4th largest stock exchange in the world by trading volume. It was the first exchange in India to provide fully automated trading. The automated system has led to greater transparency in the trading process.
Nifty is the NSE’s benchmark index which indicates the movement of the top 50 most active and liquid stocks in NSE. NSE encourages trading in equity, equity derivatives, and debt. Trading in this market happens throughout the week except for Saturdays, Sundays, and national holidays. The market opens for trading from 9:15 AM till 3:30 PM for regular sessions.
Formed in 1875, BSE is the oldest stock exchange in Asia and the fastest in the world with a trading speed of 6 microseconds. Sensex is the flagship index of BSE and it reflects the average value of the most prominent 30 stocks listed in BSE. It has the world’s 11th largest market capitalization.
It offers various services such as risk management, depository services, market data services, etc, and promotes trade in mutual funds, currencies, derivatives, etc. All the online transactions with BSE settle on a T+2 basis i.e the transactions are processed in 2 days. The days of the opening of the market and the session timings are similar to NSE.
NSE and BSE provide an equal opportunity for all investors to participate. Both are recognized by the Securities and Exchange Board of India (SEBI) which monitors the listed companies and minimizes the chance of fraudulent conduct. These are premier marketplaces for both companies and investors. If an individual desires to invest in stocks listed in any of them, he/she should register with an authentic broker and is required to have a Trading and Demat account.