Difference Between Indias Stock Exchanges NSE and BSE
NSE and BSE are two terms often heard in the circles of stock market in India. There are some differences between the two in terms of their operation and principles. NSE is the National Stock Exchange, while BSE is Bombay Stock Exchange.
NSE gets to be the largest stock exchange in India and the third largest stock exchange worldwide. On the other hand BSE is the oldest stock exchange in Asia. NSE is in New Delhi and it began in the year 1992 as a company that paid tax. NSE was regarded as a stock exchange in the year 1993 under the Securities Contract Act 1956. BSE came into existence in 1875. It is located in Dalal Street, Mumbai.
The main aim of NSE is to establish commercial facilities throughout the country for all kinds of securities. A key feature of NSE is that it accommodates the needs of all types of investors. It accomplishes its goal using the appropriate telecommunications network. In fact NSE was able to accomplish its purpose in a very short period of time.
It is important to know that NSE has a list of more than 2000 stocks from different sectors. On the other hand, the BSE has a list of more than 4000 stocks from different sectors. It is equally important to know that SENSEX is the important index of BSE and has about 30 scrips from different sectors.
On the other hand NIFTY is the important index of NSE and consists of about 50 scrips from different sectors. Another interesting difference between NSE and BSE is that NSE shows the fluctuation of share prices of 50 listed companies. On the other hand BSE shows the fluctuation of share prices of 30 listed companies.
It is interesting to note that both the BSE and NSE are stock exchanges recognized by Securities and Exchange Board of India or SEBI. From the perspective of the volume of business done on a daily basis, both BSE and NSE are equal. It is true that the investor can buy the value of both exchanges since many stocks are traded on both exchanges.