Difference between NSE and BSE With Their Detailed Comparisons (2024)

India’s two main stock exchanges are the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). These two are among Asia’s largest stock exchange surpassed only by the stock exchanges of Japan and China

The Bombay Stock Exchange is one of Asia’s oldest stock exchange, beginning operations on July 9, 1875, as “The Native Share & Stock Brokers Association”.

The National Stock Exchange is India’s biggest stock exchange in terms of market capitalization. Its operation beginning in 1992, it was the first exchange to bring in fully automated trading to India.

Although they are both Indian stock exchanges there are some fundamental differences between the two that this article will attempt to highlight within the context of the IAS Exam

Aspirants can find more Difference Between Articles, by visiting the linked page

The difference between NSE and BSE is given in the table below:

Differences between NSE and BSE

NSE	BSE
It is one of the biggest stock exchanges India along with being a harbinger of technological advances by the introduction of fully automated trading systems	The BSE is one of Asia’s oldest stock exchange markets which offers a legacy of high-speed trading
As electronic trading was incorporated from the beginning of its establishment, it always has been a fully electronic stock exchange promoting paperless trade	Only in 1995 did BSE switch to electronic trading after following a paper trading pattern since 1875.
In the global stock exchange rankings, NSE stands at the 11th Position	The BSE stands at 10th position in the global stock exchange rankings
The NSE has the lead in this segment as it has monopolized it.	BSE enjoys far lower volumes among investors and traders alike
The NSE has more than 1600 companies listed under it	The BSE has more than 5000 companies listed under it.
NSE’s Stock Index – NIFTY – gives top 50 stock index	BSE’s Stock Index – SENSEX gives top 30 stock index
NSE was recognized as a stock exchange in 1993	BSE became a recognized stock exchange in 1957
NSE promotes trading in equity, debts and currency derivatives	BSE promotes trading in debt instruments, mutual funds and currencies
Mr Vikram Limaye is the Managing Director and CEO	Mr Ashishkumar Chauhan the Managing Director and CEO.

Both the National Stock Exchange and the Bombay Stock Exchange are covered under the Economy segment of the UPSC Exams. Aspirants can find study materials related to this segment with the links given below:

Frequently Asked Questions on Difference Between NSE and BSE

Q 1. What is the difference between NSE and BSE?

Ans. NSE stands for National Stock Exchange and BSE stands for Bombay Stock Exchange. NSE is the biggest stock exchanges in India, while BSE is Asia’s oldest stock exchange. The volumes traded in NSE are way more than that traded in BSE.

Q 2. What are the stock index for BSE and NSE?

Ans. NSE’s Stock Index is NIFTY which gives top 50 stock index, whereas BSE’s Stock Index, SENSEX gives top 30 stock index.

Q 3. What is the difference between NIFTY and SENSEX?

Ans. Stock Exchange Sensitive Index (SENSEX) is the stock market index for BSE. National Stock Exchange Fifty (NIFTY) is the stock market index for NSE.

Q 4. What is SEBI’s role in BSE and NSE?

Ans. Yes, there is a probation period of 6 months for the newly appointed Junior Assistants. Both NSE and BSE are listed under the Securities and Exchange Board of India (SEBI). Both BSE and NSE are regulated by SEBI.

Candidates can find the general pattern of the UPSC Exams by visiting the UPSC Syllabus page. For more articles and exam-related preparation materials, refer to the links given in the table below:

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