Lecture Notes: Differences and Similarities between NSE and BSE

Introduction

Presenter: Shilpa Das
Channel: 5paisa
Topic: Differences and similarities between the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)

NSE
- Headquartered in Mumbai.
- Largest stock exchange in India by market capitalization.
- Established in 1992 initiated electronic trading in India.
- Benchmark: Nifty 50 (Top 50 companies based on Free Float Market Cap Weighted method).
- Index composition reviewed every 6 months.
BSE
- Headquartered in Mumbai.
- Established in 1875, first stock exchange in Asia.
- One of the top stock exchanges globally.
- Benchmark: S&P BSE Sensex (Top 30 companies based on Free Float Market Cap Weighted method).

Both headquartered in Mumbai.
Popular among investors.
Support stock trading and offer services in derivatives, futures, options, currencies, bonds, commodities, ETFs, and mutual funds.
Utilize advanced technology for electronic trading, ensuring high-speed transactions.
Accessible for trading worldwide.
Engage in investor education to promote informed investments.
Regulated by SEBI, enhancing transparency and investor protection.

Market Cap Ranking
- NSE: 8th largest globally.
- BSE: Not in the top 10.
Electronic Trading Start
- NSE: 1992
- BSE: 1995
Trading Volume and Liquidity
- NSE has higher trading volume and liquidity than BSE.
Benchmark Indices
- NSE: 50-share Nifty 50
- BSE: 30-share S&P BSE Sensex
Network Coverage
- NSE: Over 1,500 cities
- BSE: Limited to 450 cities
Listing Status
- BSE is listed on both NSE and BSE.
- NSE is not yet listed.

Reasons
- Superior technology and liquidity make NSE more attractive to investors.

Beginners
- BSE can be a good start.
Experienced Traders
- NSE is more suitable due to better technological efficiency and liquidity.
Conservative Investors
- BSE is a preferred choice.