NSE and BSE are two terms that are often heard in the stock market circles in India. There are some differences between the two in terms of their functioning and principles. NSE stands for National Stock Exchange whereas BSE stands for Bombay Stock Exchange.
NSE happens to be the largest stock exchange in India and the third largest stock exchange in the whole world. On the other hand BSE is the oldest stock exchange in Asia. NSE is located in New Delhi and was started in the year 1992 as a tax-paying company. NSE was recognized as a stock exchange in the year 1993 under the Securities Contract Act 1956. On the other hand BSE was established way back in the year 1875.It is situated in the Dalal Street, Mumbai.
The main objective of NSE is to establish trading facility nationwide for all kinds of securities. One of the chief characteristics of NSE is that it caters to the needs of all types of investors. It achieves its objective through the appropriate telecommunication network. As a matter of fact NSE was able to achieve its goal in a very short span of time.
It is important to know that NSE has a listing of more than 2000 stocks from different sectors. On the other hand BSE has a listing of more than 4000 stocks from different sectors. It is equally important to know that SENSEX is the major index of BSE and it has about 30 scrips from different sectors.
On the other hand NIFTY is the major index of NSE and it comprises 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 NSE and BSE are the stock exchanges recognized by Securities and Exchange Board of India or SEBI. In terms of the volume of the business done on a daily basis, both NSE and BSE are equal. It is true that the investor can buy the stocks from both the stock exchanges since many key stocks are traded on both the exchanges.
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Difference Between BSE and NIFTY of India