The stock market is a place where investors can trade in different financial instruments, such as shares, bonds and derivatives. The stock exchange is a mediator that allows buying/selling of shares.
In India there are two primary stock exchanges, the Bombay Stock Exchange or BSE National Stock Exchange or (NSE).
NSE is the biggest stock exchange whereas BSE is the oldest stock exchange in India. Both BSE and NSE is something related to securities such as stock shares and bonds,
The BSE was established in 1875, while NSE in 1992. The benchmark index for the NSE is the Nifty, while Sensex for BSE.
In 1875, BSE or Bombay Stock Exchange was established, formerly known as 'The native share and stock brokers association’. However, after 1957, Government of India recognized this stock exchange as the premier stock exchange of India, under the Securities Contract Regulation Act, 1956. SENSEX was also introduced in 1986 as the first ever equity index of India to offer an identifying base for top exchange trading companies. In 1995, BSE on-line trading (BOLT) was established, and at that time, its capacity amounted to 8 million transactions per day. BSE is the first stock exchange of Asia, and it offers varied services such as market data services, risk management, CDSL (Central Depository Services Limited) depository services, etc..
On the other hand NSE or National Stock Exchange is located in Mumbai, and it is India’s leading stock exchange market. It first came into existence in 1992 and brought with it an electronic exchange system in India, which led to the removal of the paper based system. NSE introduced Nifty 50 in 1996 as the identifying base for top 50 stock index, and it is extensively utilized as Indian capital markets’ barometer and by Indian investors. National Stock Exchange became a stock exchange recognized company by 1993, and in 1992, it was incorporated as a tax paying company under Securities Contracts Act, 1956.