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NSE vs. BSE: What's the Difference?

Edited by Sawaira Riaz || By Sumera Saeed || Updated on October 23, 2023
NSE is India's largest stock exchange by trading volume, while BSE is India's oldest stock exchange.

Key Differences

NSE, which stands for National Stock Exchange, is India's largest stock exchange in terms of trading volume and market capitalization. Established in 1992, it was designed to bring transparency to the Indian equities market. BSE, on the other hand, stands for Bombay Stock Exchange and is the oldest stock exchange in Asia, having been established in 1875.
Sumera Saeed
Oct 23, 2023
The NSE introduced the nation to electronic trading, which has since become the predominant method of trading securities in India. This tech-savvy approach provided a platform for trading which is more efficient and transparent. BSE, with its long history, has seen the transformation from open outcry floor trading to electronic trading and has adapted over the years to meet the changing needs of the market.
Sumera Saeed
Oct 23, 2023
In terms of indices, NSE's benchmark index is the Nifty50, which comprises the top 50 companies in terms of market capitalization and trading volume. BSE's benchmark, on the other hand, is the Sensex, which consists of 30 well-established and financially sound companies listed on the BSE.
Sumera Saeed
Oct 23, 2023
While both NSE and BSE are vital components of India's financial ecosystem, the NSE has a broader national presence and captures a larger slice of the trading volume. BSE, however, has more listed companies and is often seen as a more traditional exchange given its rich history.
Sumera Saeed
Oct 23, 2023
Both NSE and BSE are regulated by the Securities and Exchange Board of India (SEBI) and play crucial roles in raising capital for Indian businesses. They have complementary roles in the nation's economy, with NSE leading in derivatives and BSE having a rich history of equities trading.
Janet White
Oct 23, 2023
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Comparison Chart

Acronym Meaning

National Stock Exchange
Bombay Stock Exchange
Sumera Saeed
Oct 23, 2023

Establishment

Established in 1992
Established in 1875
Sumera Saeed
Oct 23, 2023

Benchmark Index

Nifty50
Sensex
Sumera Saeed
Oct 23, 2023

Trading Platform

Predominantly electronic
Transitioned to electronic
Sara Rehman
Oct 23, 2023

Geographical Reach

Broader national presence
Historic presence in Mumbai
Janet White
Oct 23, 2023
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NSE and BSE Definitions

NSE

NSE was established to bring transparency to Indian equity trading.
NSE's introduction revolutionized the way securities were traded in India.
Sumera Saeed
Oct 23, 2023

Bse

BSE's signature index is the Sensex, consisting of 30 companies.
Traders often monitor the Sensex on the BSE to gauge market sentiment.
Sumera Saeed
Oct 23, 2023

NSE

NSE is known for its electronic trading platform.
The NSE's electronic system ensures transparency in trades.
Sumera Saeed
Oct 23, 2023

Bse

BSE is Asia's oldest stock exchange located in Mumbai.
The BSE has witnessed the evolution of India's stock market over the decades.
Sawaira Riaz
Oct 23, 2023

NSE

NSE is India's leading stock exchange based on trading volume.
The NSE plays a significant role in the Indian securities market.
Sawaira Riaz
Oct 23, 2023

Bse

BSE was the premier platform for equity trading in India before the advent of electronic exchanges.
Many historic trades have taken place on the BSE's floor.
Sumera Saeed
Oct 23, 2023

NSE

NSE represents the National Stock Exchange of India.
Investors often check the NSE for real-time stock prices.
Sumera Saeed
Oct 23, 2023

Bse

BSE has more listed companies compared to other Indian exchanges.
Entrepreneurs dream of seeing their companies listed on the BSE.
Sumera Saeed
Oct 23, 2023

NSE

NSE's flagship index is the Nifty50.
The performance of the Nifty50 on the NSE gives insights into the broader market's health.
Janet White
Oct 23, 2023

Bse

BSE stands for Bombay Stock Exchange.
Companies aspire to get listed on the BSE due to its prestige.
Sumera Saeed
Oct 23, 2023

Bse

A fatal disease of cattle that affects the central nervous system; causes staggering and agitation
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Aug 26, 2015

FAQs

How many companies are listed on the Sensex of BSE?

The Sensex comprises 30 companies.
Sumera Saeed
Oct 23, 2023

When was BSE established?

BSE was established in 1875.
Sawaira Riaz
Oct 23, 2023

Which index is associated with NSE?

The Nifty50 is NSE's benchmark index.
Sumera Saeed
Oct 23, 2023

Is BSE the oldest stock exchange in India?

Yes, BSE is the oldest stock exchange in Asia.
Harlon Moss
Oct 23, 2023

Are the companies listed on NSE also listed on BSE?

While many companies are dual-listed on both exchanges, not all companies on NSE are listed on BSE and vice-versa.
Harlon Moss
Oct 23, 2023

Is NSE older than BSE?

No, BSE is older, having been established in 1875, while NSE was established in 1992.
Sumera Saeed
Oct 23, 2023

What does NSE stand for?

NSE stands for National Stock Exchange of India.
Sumera Saeed
Oct 23, 2023

Are both NSE and BSE regulated by the same authority?

Yes, both are regulated by the Securities and Exchange Board of India (SEBI).
Harlon Moss
Oct 23, 2023

Which exchange's index is considered a barometer for the Indian economy?

Both NSE's Nifty50 and BSE's Sensex are considered barometers for the Indian economy.
Aimie Carlson
Oct 23, 2023

What is the significance of BSE in India's financial history?

BSE, as Asia's oldest exchange, has played a pivotal role in the development of India's capital market and has a rich legacy in India's financial history.
Sumera Saeed
Oct 23, 2023

Which exchange has a larger trading volume, NSE or BSE?

NSE typically has a larger trading volume than BSE.
Sara Rehman
Oct 23, 2023

Which city houses the BSE?

BSE is located in Mumbai.
Harlon Moss
Oct 23, 2023

Can foreign investors trade on BSE and NSE?

Yes, foreign investors can trade on both exchanges, subject to regulations.
Sumera Saeed
Oct 23, 2023

Which exchange was the first to introduce electronic trading in India?

NSE was the first to introduce electronic trading.
Sumera Saeed
Oct 23, 2023

Does BSE have a presence outside of Mumbai?

While BSE's main operations are in Mumbai, it has a global presence through various collaborations and indices.
Aimie Carlson
Oct 23, 2023

Which exchange introduced the first derivatives trading in India?

NSE was the pioneer in introducing derivatives trading in India.
Harlon Moss
Oct 23, 2023

Does NSE only deal in equities?

No, NSE deals in equities, derivatives, and various other securities.
Sumera Saeed
Oct 23, 2023

How many companies are listed on BSE?

BSE has over 5,000 listed companies, making it one of the world's leading exchanges in terms of listings.
Sumera Saeed
Oct 23, 2023

Which exchange, NSE or BSE, has a wider national reach?

NSE has a broader national reach compared to BSE.
Sara Rehman
Oct 23, 2023

What was revolutionary about NSE's approach to trading?

NSE introduced electronic trading to India, ensuring more transparency.
Aimie Carlson
Oct 23, 2023
About Author
Written by
Sumera Saeed
Sumera is an experienced content writer and editor with a niche in comparative analysis. At Diffeence Wiki, she crafts clear and unbiased comparisons to guide readers in making informed decisions. With a dedication to thorough research and quality, Sumera's work stands out in the digital realm. Off the clock, she enjoys reading and exploring diverse cultures.
Edited by
Sawaira Riaz
Sawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.

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