If you want to know NSE VS BSE differences, then this article is just for you. In this article, we have provided a complete insight into the differences between NSE and BSE. But before moving to the NSE vs BSE difference, let’s understand what are NSE and BSE and why are they so important.
What are NSE and BSE in the stock market?
A stock exchange is a marketplace where buyers and sellers can come and trade between specific hours of the business day. The trade is made between securities, commodities, and stocks with the help of brokers.
NSE and BSE are the two main stock exchanges in India. The term NSE stands for National Stock Exchange and BSE stands for Bombay Stock Exchange. NSE and BSE are among the largest stock exchanges in Asia surpassing China and Japan.
Currently, there are six active stock exchanges in India.
- Bombay Stock Exchange Ltd. (BSE)
- National Stock Exchange of India Ltd. (NSE)
- Calcutta Stock Exchange Ltd. (CSE)
- Metropolitan Stock Exchange of India Ltd. (MSE)
- Multi Commodity Exchange of India Ltd. (MCX)
- National Commodity & Derivatives Exchange Ltd. (NCDEX)
What is Bombay Stock Exchange and when was Bombay Stock Exchange established?
The BSE or Bombay stock exchange is the oldest securities market exchange in India. It was established on 9th July 1875 as The Native Share & Stock Brokers Association. Currently, it is based in Mumbai and enlists around 6000 companies.
BSE full form: Bombay stock exchange
What is the National Stock Exchange and when was the National Stock Exchange of India Limited established?
The NSE or National Stock Exchange is the fourth largest exchange in the world by equity trading volume in 2015. It was established in 1992 in Mumbai.
NSE full form: National Stock Exchange
NSE VS BSE difference
What is the difference between NSE and BSE? If you are still reading this article you must have waited for this answer. Let us look at the table below to understand NSE and BSE differences.
| NSE | BSE |
|---|---|
| NSE stands for National Stock Exchange | BSE stands for Bombay Stock Exchange |
| Founded in 1992 | Founded in 1875. |
| NSE allows trading in equity, debts, and currency derivatives. | BSE allows trading in debt instruments, mutual funds, and currencies. |
| It is one of the largest stock exchanges in India, as well as being a forerunner of technological advancements thanks to the introduction of fully automated trading systems. | BSE is one of Asia’s oldest equity markets offering a high-speed trading legacy. |
| Electronic trading was incorporated since its establishment, it has always been a fully electronic stock exchange and promoted paperless trading. | After following a paper trading pattern since 1875, it started electronic trading in 1995, |
| The global stock exchange ranking for NSE is 11th. | The global stock exchange ranking for BSE is 10th. |
| NSE has a higher number of investors as compared to BSE. | BSE enjoys much lower volumes among both investors and traders |
| There are approximately 1600 companies listed in NSE. | More than 5000 companies are listed on BSE. |
| NSE stock exchange index – NIFTY NIFTY 50 gives the top 50 stock index. | BSE stock exchange index – SENSEX SENSEX gives the top 30 stock index. |
Why do share prices of the same company differ in BSE and NSE?
NSE and BSE are two different stock exchanges. Both places have different sets of buyers and sellers. Therefore, supply and demand on both exchanges would be different, which would make the price different on both exchanges.
Let’s understand it better with an example of a vegetable shop. Assume there are two vegetable shops X and Y in the same locality. Shop X is in supermart and shop Y is in the local vegetable market. Can the price of onions be different in both the shops? The answer is Yes! a marginal price difference is possible in both the shops.
The reason is that both places have different buyers and sellers and therefore the supply and demand of both would be different. This will cause the price of onions to differ in both places.
List Of Stock Exchanges In India (2022)
| Name of the Recognized Stock Exchange | Address and Website | Segments Permitted For Trade |
|---|---|---|
| BSE Ltd. | P J Tower, Dalal Street, Mumbai 400023 Website: http://www.bseindia.com | a. Equity b. Equity Derivatives c. Currency Derivatives (including Interest Rate Derivatives) d. Commodity Derivatives e. Debt |
| Calcutta Stock Exchange Ltd. | Website: http://www.cse-india.com/ | |
| Metropolitan Stock Exchange of India Ltd. | 205A, 2nd Floor, Piramal Agastya Corporate Park, Sunder Bung Lane, Kamani Junction, LBS Road, Kurla (West)Mumbai – 400070 Website: http://www.msei.in/index.aspx | a. Equity b. Equity Derivatives c. Currency Derivatives (including Interest Rate Futures) d. Debt |
| Multi Commodity Exchange of India Ltd. | Exchange Square, CST No.225, Suren Road, Andheri (E), Mumbai 400093 Website: https://www.mcxindia.com/ | a. Commodity Derivatives |
| National Commodity & Derivatives Exchange Ltd. | Akruti Corporate Park,1st Floor, Near G.E.Garden, L.B.S. Marg, Kanjurmarg (West), Mumbai 400078 Website: http://www.ncdex.com/ | a. Commodity Derivatives |
| National Stock Exchange of India Ltd. | Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (East) Mumbai 400051 Website: https://www.nseindia.com | a. Equity b. Equity Derivatives c. Currency Derivatives (including Interest Rate Derivatives) d. Commodity Derivatives e. Debt |
FAQ
If you are an Indian investor who wants to invest in shares, then you should prefer BSE. However, if you intend to day trader, risking share trading with derivatives, futures, and options, then you should prefer NSE.
Yes, buying shares from BSE and selling on NSE or vice versa is possible after T+2 Days. But buying from BSE and selling on NSE or vice versa on the same day is not allowed.
BSE is better for new investors and NSE is preffered by seasoned investors. If you are new in the stock market, then BSE would be better choice for you.
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