Major Stock Exchanges in India

Until a few years ago, there were many stock exchanges in our country, where companies used to list their successful IPOs or public issues.

This all changed completely with the emergence of the National Stock Exchange.

From the physical trading of shares and going to exchange and exchange, there has been a revolution in the buying and selling of shares by the investors sitting in their rooms through internet and telecommunications today. All this has been made possible by electronic trading.

The SAT or Very Small Aperture Terminal used by the National Stock Exchange helps investors trade through a satellite network.

With the ability to buy shares from NSE sitting in any part of the country, there is no need to go to the exchanges. Thus, with virtually no need for regional stock exchanges, most of them have gradually died out.

The exchanges that were successful in changing themselves with the times are still in existence today. The three famous exchanges in the country are:

National Stock Exchange

The National Stock Exchange (NSE) is by far the largest stock exchange in the country with a solid network. NSE was established by the top domestic institutions of the country.

NSE is spread through leased lines and VSATs in almost every city across the country. This in itself is a huge network. One can trade futures and equity shares through this exchange.

NSE, which was a pioneer in creating India’s National Securities Depository, has eliminated physical certificates by creating electronic share certificates. Since starting operations in 2004,

NSE has brought transparency by reducing costs for investors. Has revolutionized the system of making Demat, and doing electronic trading.

Bombay Stock Exchange

Bombay Stock Exchange is the oldest stock exchange in the country established in 1875. It was the largest stock exchange in the country but over the years it has lost ground to NSE.

There are about 5500 companies listed in BSE. No other exchange in the world has so many companies listed.

Over the years, BSE has adjusted itself to the changes and ensured that it keeps pace with NSE. BSE also provides other services like clearing, settlement, education and market data services.

MCX Stock Exchange

MCX Stock Exchange is the latest stock exchange of the country which was established a few years ago. It is an attempt of MCX to be a commodity based stock market. It will take time to catch up with giants like NSE and BSE.