NSE vs BSE - definition and major differences

Next time someone asks you the difference between nse vs bse, you’ll most definitely know the answer. gone are the days when teens were all about hot gossips, running around crushes and trendy piercings. we mean, not that we aren’t into it now but there’s one added thing and that’s financial independence 😎


Yep, we’re cool, smart and want to explore the financial side while being in the prime of our lives. whether we talk about earning money or investing it right, teens today prolly are keener to explore how to invest money effectively. The risk-taking factor always remains high but hey, isn’t that something which makes us richie rich? 😛


so let’s take a dive into the stock world and let’s learn a bit about it? so basically, the stock exchange is a place where investors and traders trade security with the support of a broker. nse and bse are the most famous stock exchanges in India.


nse vs bse


nse is an abbreviation of National Stock Exchange while bse is an abbreviation for Bombay Stock Exchange. now you must be wondering so what’s the difference between nse and bse, right? come on, let’s learn a bit more before we take you to the stock world.


what is bse?


this is kinda known to be the Godfather of stocks cause it is one of the oldest and the first stock in Asia. the stock jumped out of the financial womb in the year 1875 and went by the name- the native share and stockbroker association, back then.


bse introduced the word ‘Sensex’ in 1986 as its newest equity index. it was majorly brought to identify the top 30 trading companies of the exchange in 10 or more sectors.


Sensex is the most important indices of bse but apart from that, bse also has these as its other important indices such as bse 100, bse 200, bse 500, bse Metal, BSC FMCG, and some more. bse provides services such as risk management, market data services, suppository services and central depository services limited (CDSL)


in 1985 bse established online trading also referred to as BOLT and that was the time when it hiked off. The transaction capacity skyrocketed all the way up to 8 million transactions per day 😦 Today on 13th January 2022 the all India market capitalisation of bse is seen to be over 3.7 trillion USD


the swag of bse is so high that it is counted under the 10 most precious exchanges on a global level.


Okay bruh so like, now what’s nse?


nse is also known as National Stock Exchange was introduced after bse and is based out of Mumbai itself. although launched in 1992, nse is seen to be the leading stock exchange market along with nse came the paperless stock exchange in India, the electronic system was seen to take the market by storm. and that’s how a major difference in nse vs bse was just explained.


the market was formally seen to be called as ‘stock exchange’ by SEBI. in 1994 nse introduced the wholesale debt market which was followed by the launch of the cash market shortly after.


somewhere between 1995 to 1996 nse introduced the NIFTY 50 index and started the settlement as well as trading in dematerialised security. nse increased its offering for the products apart from all the services it used to give, it has included equity derivative instruments, clearing and settlement, currency derivatives and commodities. the total market cap of nse has reached over 3.4 trillion as of today, on 13th Jan, 22’


major nse vs bse differences


  • although both bse and nse are the oldest stock exchanges in the country, bse still remains the oldest and slightly more powerful one


  • bse is kinda older than nse as it was recognised in 1957 while bse was recognised in 1993. so you know, that speaks volumes for the major difference we can see in nse vs bse


  • nse introduced the modern idea of electronic exchange systems in 1992, therefore, bringing a wave of modernity. however, bse introduced the electronic exchange BOLT in 1995


  • today although bse is the oldest stock exchange in the country, bse has just taken to be the biggest one


  • one of the most significant differences in nse vs bse is that nse’s NIFTY provides the top 50 stock index while bse’s sensex only gives the top 30 stock index


  • the total number of listed companies in nse is just 1790 while the number of companies listed in bse is somewhere around 7400, so well it’s a significant rise in numbers, isn’t it? 😵‍


  • while speaking of global ranking, bse has secured 10th position while nse gives it a tough competition by securing a place right next to bse that is, 11th position


  • the game of nse vs bse game has been going for quite some time and it’s time we close it with the last and major difference. in case of liquidating the stocks, nse is a clear winner, you can liquidate your stocks for cash right away. but you might see some problems in liquidating your bse stocks.


now, what should the investors use to transact?


aghhh! choosing is tough we want to have apple pie but why not have ice cream as well. so basically if you are wondering what should you choose from nse vs bse, that purely depends on the stock you’re tryin’ to have.


For instance, let’s say that you wanna invest in bse then your only option cuts down to nse. but bruh, don’t worry cause almost all the stocks are listed in both nse as well as bse so you can choose one of your choices!


wow, read so much already? are you feeling proud of yourself or what? Well, you should because now you have a better insight and we’re sure to see you spending better 🥰


And and and, before you invest in any stocks don’t forget to give it a small read. After all, money doesn’t grow on trees na. 😛


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