A stock exchange is a regulated marketplace where stocks, bonds, and other securities are traded. In India, the two primary stock exchanges are the NSE and BSE.
Bombay Stock Exchange (BSE)
Established in 1875, BSE is the oldest stock exchange in Asia. Its benchmark index is the Sensex, which tracks 30 large-cap companies.
National Stock Exchange (NSE)
Established in 1992, NSE introduced electronic trading to India. Its benchmark index is the Nifty 50, which tracks 50 large-cap companies. NSE handles the majority of daily trading volume in India.
What Do Stock Exchanges Do?
- Provide a platform for buying and selling securities
- Ensure fair and transparent price discovery
- Maintain liquidity so investors can enter and exit positions easily
- Enforce listing requirements for companies
- Settle trades and manage risk
How Are They Regulated?
Both exchanges are regulated by SEBI, which sets rules for trading, listing, and investor protection.
Disclaimer: This article is for educational purposes only.
