How many stock exchanges are there in India is a legitimate question because there are different stock exchanges in every nation. Most people mistakenly believe that the Bombay Stock Exchange (BSE) and National Stock Exchange are the only two in India (NSE).
A stock exchange is a platform where stocks or securities of publicly traded companies are bought and sold by investors. It is a regulated marketplace where buyers and sellers come together to trade securities. Stock exchanges play an important role in the growth and development of a country’s economy by providing a transparent and efficient mechanism for raising capital, facilitating the trading of securities, and creating investment opportunities.
In India, there are two primary stock exchanges, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Both these exchanges have a rich history and have contributed significantly to the growth and development of the Indian economy.
The Bombay Stock Exchange, established in 1875, is the oldest stock exchange in Asia and the first in India. The exchange is located in Mumbai, the financial capital of India. The BSE provides a platform for trading in equities, debt instruments, derivatives, mutual funds, and exchange-traded funds (ETFs).
The National Stock Exchange, on the other hand, was founded in 1992 and is headquartered in Mumbai. The NSE is the largest stock exchange in India in terms of market capitalization and turnover. It provides a platform for trading in equities, derivatives, mutual funds, and ETFs.
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List of Stock Exchanges in India in 2023
Apart from the BSE and NSE, there are several regional stock exchanges in India, including the Calcutta Stock Exchange, Ahmedabad Stock Exchange, Madras Stock Exchange, and the Bangalore Stock Exchange. However, most of these regional exchanges have lost their relevance in recent years, and their trading volumes have decreased significantly.
There are currently 23 recognized stock exchanges in India, out of which the following are the major stock exchanges:
- National Stock Exchange (NSE): Founded in 1992, NSE is the largest stock exchange in India in terms of market capitalization. It has a fully automated trading system and operates on the principles of an order-driven market.
- Bombay Stock Exchange (BSE): Founded in 1875, BSE is the oldest stock exchange in Asia and the first in India. It is also one of the largest exchanges in the world in terms of the number of companies listed. It has a floor trading system as well as an electronic trading platform.
- Multi Commodity Exchange of India (MCX): Established in 2003, MCX is a commodity futures exchange that facilitates online trading, clearing, and settlement operations for commodity futures transactions.
- National Commodity and Derivatives Exchange (NCDEX): Founded in 2003, NCDEX is a commodity futures exchange that operates in agricultural commodities, such as wheat, soybean, cotton, and other agro-based products.
- Indian Commodity Exchange (ICEX): Established in 2009, ICEX is a commodity futures exchange that facilitates trading in diamond, steel, rubber, and other commodities.
- Calcutta Stock Exchange (CSE): Founded in 1908, CSE is a regional stock exchange that operates in the eastern region of India. It has a floor trading system as well as an electronic trading platform.
- Metropolitan Stock Exchange (MSE): Established in 2008, MSE is a national-level stock exchange that operates in the capital market, futures, and options segment.
- BSE-SME Exchange: Launched in 2012, BSE-SME is a platform for small and medium-sized enterprises (SMEs) to raise capital through the issue of shares.
- National Stock Exchange – SME (NSE-SME): Launched in 2012, NSE-SME is another platform for SMEs to raise capital through the issue of shares.
- India International Exchange (India INX): Launched in 2017, India INX is India’s first international exchange that operates in the global financial market, primarily in currency and commodity derivatives.
These are some of the major stock exchanges in India, each with its own unique characteristics and offerings.