NSE and BSE
A stock exchange or a stock market acts as a service provider, it is one stop shop for traders to buy or sell financial instruments such as shares, bonds etc. A stock exchange can be approached for both issue and redemption of Publicly listed shares. To be able to trade on a stock exchange you’ll need to have a trading account. SEBI (Securities Exchange Board of India) is the governing body in India that acts as a regulator of capital markets under a resolution of the Indian Government.
Leading Stock Exchanges of India are NSE (National Stock Exchange) and BSE (Bombay Stock Exchange)
WHAT IS BSE?
Bombay Stock Exchange is the expansion of term BSE. It is an ancient stock exchange of Asia, incorporated in 1875 and it is headquartered in Maharashtra (Mumbai), India. Bombay Stock Exchange is the 10th largest stock exchange in market capitalization. Around 5400 companies are listed on BSE as of 2015. Not many know that BSE started under a banyan tree with the total money used back then were INR 7.
Key Features of BSE
CEO/MD – AshishKumar Chauhan
Market Capitalization – USD $1.7 Trillion
Currency Traded – INR
Name of Indexes – BSE Sensex, BSE Mid Cap, BSE Small Cap, BSE 500
Location – Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai
ISO Certified – Yes, first one to get this certification
09:00 to 09:15 – Pre-open trading session
09:30 to 15:30 – General trading session
17:05 to 17:15 – Position transfer session
17:05 to 17:55 – Closing session
17:07 – Option Exercise session
OBJECTIVES OF BSE
From more than 130 years, BSE is providing an effective and efficient capitalization platform. It provides a transparent electronic screen based market for trading in different securities, instruments, funds and bonds, be it small or medium enterprises. It also serves as host of secondary services for investors like risk management, market facilities, education. These services, processes safeguard the investor’s interest, develop Indian Capital Market along with innovation and competition. It also provides various depository services. Also BSE acts as a regulator, which provides surveillance mechanisms through which all the speculations, irregularities and manipulations can be detected.
WHAT IS NSE?
National Stock Exchange is the expansion of term NSE. It is the top exchange in India by number of trades in equity shares and number three in the world. It is situated in Mumbai and was established in November 1992 as Taxation Company. It was accepted as stock exchange in April 1993 under the Securities Act 1956, with P.V. Narasimha Rao being the Prime Minister of India and Manmohan Singh being the Finance Minister. NSE has around 1600 listings as of 2015.
Key Features of NSE
CEO/MD – Chitra Ramkrishna
Market Capitalization – USD $1.65 Trillion
Currency Traded – INR
Name of Indexes – CNX Nifty, CNX Nifty Junior, CNX 500
Location – Bandra, Mumbai
09:00 to 09:08 – Pre-open trading session
09:15 to 15:30 – General trading session
OBJECTIVES OF NSE
The key objective of National Securities Exchange is to provide a transparent trading system for all kinds of securities worldwide. It also protects the interest of investors. It achieved its objectives in quite short span of time. Many new terms have come into being to give a variety of options to investors.