How many stock exchanges are in India?
A stock exchange is a marketplace where buying and selling of securities take place. Whenever we talk about the stock exchanges of India, the most popular ones are the National Stock Exchange and Bombay Stock Exchange of India. But this is not the reality; there are many more exchanges in India. Here are the details regarding some of the major stock exchanges of India:
Major Stock Exchanges in India
National Stock Exchange of India
The National Stock Exchange came into existence in 1992 and is the youngest one among the stock exchanges of India. NSE is registered under the Securities Contract Regulation Act. It was launched with a vision of being a market leader, creating a global presence, and facilitating financial wellbeing. It works on advanced electronic trading systems and has removed the concept of paper-based working. NIFTY 50 has become the most famous benchmark in the stock market of India. It lists out the top 50 companies that trade using the NSE platform.
Bombay Stock Exchange
BSE has created a beautiful history. It was established in 1875 and one of the oldest stock exchanges operative in the whole of Asia. It is located at Dalal Street, Mumbai, and was founded by Premchand Roychand.
BSE is known for launching the concept of Sensex which is often used as a synonym for the overall performance of the stock market of India. In 1995, BSE moved away from paper-based trading to the electronic trading system.
Apart from Sensex, some other indices are BSE 200, BSE 100, BSE MIDCAP, BSE SMALLCAP, BSE PSU, BSE Auto, BSE FMCG, BSE Metal, BSE Pharma, etc are tracked regularly.
Calcutta Stock Exchange
It falls under the category of regional stock change of India. It is the second-largest stock exchange established all over South Asia. It came into existence in 1908. In 1980, CSE got permission from the Government of India to be registered under the Securities Contracts (Regulation) Act, 1956. BSE has a 5% stake in CSE.
The index of CSE is known as CSE-40, which is similar to Sensex and Nifty. But at present, trading no longer takes place on CSE despite being a permanent stock exchange in India. SEBI has asked CSE to exit from the stock exchange market, but the matter is currently in court.
Metropolitan Stock Exchange
Currently, there are three stock exchanges in India, where trading of individual stocks takes place, and Metropolitan is one of them. The rest two are NSE and BSE. The company was established in November 2008 and became operative in 2009. The MSEI is a full-time service provider in the stock exchange market for buying and selling equity derivatives, currency derivatives. It is a high-tech, transparent, and electronic platform for trading in the capital market.
India International Market
This is also a part of the stock exchange market of India, established in January 2017. It is the subsidiary of Bombay Stock Exchange of India, located at the GIFT city in Gujarat. It is the world’s best-advanced technology platform having a turnaround time of 4 microseconds works almost 22 hours a day and 6 days a week. The two main sessions of trading in the India International market start at 4.30 am to 5.00 Pm and 5.01 Pm TO 2.30 Am. It becomes one of the most International primary markets after being launched in the stock market at the global level. With its operations, it has connected global investors with Indian investors.
NSC IFSC limited
The NSC IFSC came into existence on 29th November 2016. It is a subsidiary of the National Stock Exchange of India located in GIFT city in Gujarat. Trading in equity, currency, commodity derivatives in addition to Depository Receipts are carried on at NSC IFSC. 16 hours of trading are conducted on the exchange that is divided between two trading sessions. The first session starts between 8 am and 5 Pm, and another one will take place between 5.30 pm and 11.30 Pm.
Major Commodities & Derivatives Exchange in India
National Commodity and Derivatives Exchange
The National commodities derivatives exchange came into existence in 2003, located in Mumbai. It has a client base of more than 30 Lakhs. It is the leading agricultural commodity exchange where the trading of derivatives like refined oils, wheat, channa, soya bean, and other forms of seeds takes place. Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD), National Stock Exchange of India Limited (NSE), Canara Bank, Punjab National Bank (PNB), CRISIL Limited, Indian Farmers Fertiliser Cooperative Limited (IFFCO) are some of the major shareholders of NCDEX.
Multi Commodity exchange of India
It is one of the largest commodities derivatives exchanges in India, headquartered in Mumbai. MCX is involved in the trading of commodities like silver, gold, natural gas, crude oil. Apart from that, trading of agricultural items like rubber, cotton, crude palm oil, and cardamom is also carried on. MCX is also a listed company. To maintain a digital record of all commodities, derivatives has launched a web-based application known as Commodities receipt information system.
Indian Commodities Stock Exchange
It is a commodity exchange where the trading of commodity derivatives takes place. The trading became operative in July 2017. They were the first launch to the ‘Diamond Future’ contract in August 2017. After one year, they launched a ‘steel contract.’ It is one of the most active stock exchanges in India.
The stock exchange is one of the most important parts of the Indian capital market. It is one of the most convenient places to do the trading of securities. The stock market has well-defined rules and structures. One can keep a record of all major changes that take place in the share market. It is the pulse of the Indian economy and a major contributor to rising economic growth.
The two major stock exchanges in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The key difference between NSE and BSE is their trading mechanism. NSE uses an electronic trading system, while BSE uses an open-outcry trading system. Additionally, NSE has more listed companies and a higher trading volume compared to BSE.
You can invest in stocks listed on NSE or BSE by opening a trading and demat account with a registered broker. Once you have an account, you can place buy or sell orders for the stocks you want to trade.
The benchmark index for NSE is the Nifty 50, which tracks the performance of the top 50 companies listed on NSE. The benchmark index for BSE is the Sensex, which tracks the performance of the top 30 companies listed on BSE.