A Detailed History of NSE and BSE

Stock trading is considered one of the fastest ways to get maximum return on the investment, in minimal time. However, apart from this, it is also considered to be one of the riskiest investment options due to the volatile nature of the market. Stock trading is only beneficial for those who have already done it in the past or have researched extensively about it. Stock trading involves Shares, Bonds, equity, ULIPs and other commodities that are provided by a company in return for an amount. Once you have purchased the shares of a company, they provide you with regular dividend and income at regular intervals and also share a part of their profits. Stock trading is often done by people who choose it as an occupation. They are called brokers, who manage the buying, selling and portfolio of other people, while working on a fee or commission. There is a very small number of people who manage Stock Trading by themselves and save a lot of money on commissions. People like these have already done a lot of research on the market and know about the trends and characteristics.

When a person needs to start Stock trading or want to invest in share market, there are two prominent options, BSE (Bombay Stock Exchange) and NSE (National Stock Exchange). You must have seen the graph of these exchanges in many business news channels, who gives you a live update on the current status of these market and conditions of other companies. These graphs and numbers represent the amount of wealth invested in the Indian market. The bigger the number, the more wealth the country earns. BSE and NSE numbers have a huge impact on the growth of an economy. During a recession, which happened a decade back, lower numbers on the BSE and NSE also brought down the growth rate of the country. This is because the exchange is directly associated with the amount of wealth that is invested in the country. Stock trading has been one of the oldest parts of many countries. Both these exchange are controlled and follows a set of rules and regulations set by SEBI (The Securities and Exchange Board of India), which was under the SEBI 1992 act. The major role of SEBI is to regulate the exchange of market securities and make sure that investors do not face any issue while investing in companies. These rules and regulations have clear guidelines as to how the investor will receive the benefits and how the companies have to follow certain procedures for requesting the people to invest.

BSE or Bombay stock exchange started in 1875 as a very small institution by Prechand Roychand, who was very well known as one of the best stock traders of the time. Although the stock exchange operations started in 1855, the official exchange was started in 1875 under the name of Native Share and Stock Brokers Association, which is now known as BSE. BSE is one of the oldest stock exchange market and probably the first in Asia. It was officially recognized by the government in 1957 and hence became a center point for the investors who wanted to invest in Indian companies. Later, with the increase in globalization, the reach of BSE increased to an international market. It allowed the opportunity for Indian citizens to identify and bring international companies in India and invest in then through Stock trading in BSE. In the following years, BSE came to be a well-known name in the Stock trading market. However, with the increasing transaction, they faced a lot of issues due to manual handling. In the year 1995, they switched the entire operation to digital in less than two months and now they can handle up to 8-10 million of transactions every day. They also provide the users with a centralized exchange system where you can invest in stocks of any company. BSE not only deals with securities like Shares, equity, bonds, etc but also deals in commodities such as Gold, Silver, copper, etc.

NSE or National Stock Exchange is one of the most known exchange markets in Mumbai. If you know or have heard about BSE, then you must have heard about NSE. NSE is the first electronic trading market of India which started in 1992. Due to its electronic trading, it was easily accessible by stock traders across the country and could invest in any company through it. Both the NSE and BSE index provides a transparent view of the Indian Economy. It is regulated under the Securities Contracts (Regulation) Act, 1956. It is regulated with keeping the interest of investors in mind and also contributes a good amount to the GDP of the country

Since both these exchanges are regulated by government bodies and have a long past in investing, these markets are the best options for Stock trading. There are many benefits to investing in these markets.

  • Regulated bodies: Since these exchanges are regulated and monitored by organizations like SEBI, the investor can be assured that no malpractices will be allowed in Stock trading. This provides complete security for the investor’s amount.
  • Various investing options: These exchange can provide a person with multiple investment options as many international and national companies are already listed on these exchanges.
  • Regular updates: Due to the increase in the technological method used while trading, you can view the status and price of your security anytime and can easily buy or sell it.
  • Easily buy and Sell options: With a centralized system for buying, selling and viewing the status of your shares, you can easily do any kind of operations from anywhere in the world.

These were some of the few features of both the exchanges. BSE and NSE have made a name of their own and whenever you talk about the term investing, share trading and these market names automatically come to the mind. If you want to invest in this market, do take the help of an expert or someone who has already invested in this market.

 

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