How Many Types of Stock Exchange in India
As we know, the share marketplace is well known for trading listed companies’ shares. At the end of 18 century, it was introduce in India. This article will learn about different types of stock exchanges in India. But before starting the journey, let’s read the proper definition of the stock exchange.
What Is Stock Exchange
A stock exchange provides the platform for trading for every investor and trader. In the early 1990s, many stock exchanges formed in India. By following SEBIs guidelines, every investor can easily buy or sell a share during specific business hours. Only the companies that are listed can be traded. Hence, the stock not list on the stock exchange can be changed over the counter market. But in the stock exchange market, the price of shares reaches high. Two essential types stock exchange in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
How Does Stock Exchange Work?
There is no need for any specialists or markets on the stock exchange of India. It works itself independently. With the help of an electronic limit book, the Indian stock exchange process will be done. With the use of a trading computer, the orders are automatically match. Although with the most suitable limited orders, it matches the investor’s demands to market orders. Disappearing market orders publicly shows transparency, which is the best benefit of driving such charges.
In such stock exchange orders in India, brokers play an essential role. Although, by getting the benefits of both terminals market, brokers of stock exchange investors can easily place orders directly into the trading system.
Types of Stock Exchange India
Let’s begin the journey about the types of stock exchanges in India. However, before starting the discussion on the types of stock exchange in India, we always recommend joining the Best Stock Market Institute In Delhi and trading under the guidance of a well-experienced mentor of the share market with the proper fundamental and technical analysis knowledge, which increase the chances of profit and reduces the chances of risk,
Bombay Stock Exchange (BSE)
The establish year of BSE is 1875. The primary purpose of BSE is to provide a transparent and effective market for trading currencies, equity, mutual funds, etc. Although, the central vision of BSE is to Emerge as the leading stock exchange by providing the best class global practice technology, innovation of production and customer services.
As a subordinate, BSE is own. For providing the settlement to execute traders, the Indian clearing corporation acts as a central country part to all the traders. In the year of 1992, it was introduce. Also, BSE institution is the subsidiary of BSE limited, which works as an educational institute of the stock market.
Although besides SENSEX, there are also some other essential indices included in BSE, and they are BSE100, BSE200, BSE MID CAP, BSE SMALL CAP, BSE AUTO, BSE METAL etc.
National Stock Exchange (NSE)
Is NSE is the leading stock exchange? It is India’s first electronic dematerialize stock exchange by which online trading is possible for every trader. NSE became the first stock exchange that provides a fully automatic trade-based system to make the trading process easy. However, under the security contract regulation act in 1993, NSE registered itself as the stock exchange. However, the central vision of NSE is to work as a leader, make a global presence, and give the facility of financial to be well-being people.
In creating national securities depository limited, NSE plays a vital role. NSDL is a process in which every investor can buy and sell shares electronically without hassle.
Also Read – How To Trade In Stock Market Beginners Guide
Calcutta Stock Exchange
In southeast Asia this stock exchange is the oldest one. This stock exchange was incorporate in 1908, and in that year, 50 members worked in it. At present, in the Lyons range, CSE is located. The SEBI and board securities of India said CSE to take the exit. However, this matter is currently hear at the high court of Calcutta.
India International Exchange (India INX)
2017 was the year when India INX is introduce. And it became the first international stock exchange for the traders of India. This stock exchange is the subsidiary of BSE, and also it operates out of Gujarat, the global finance tech city.
Metropolitan Stock Exchange (MSE)
However, in the year 2012 Metropolitan stock exchange was introduce by the security board of exchange. In debt markets, capital markets and future & options, MSE provided the electronic and high tech trading platform.
On 9th February 2013, MSE introduced its SX40 index, and it started trading on 11th February 2013. There are 40 large caps in SX40, which are free float-base indices. However, there are liquid stocks that diversify the different sectors of the economy.
Providing financial literacy across India is the main objective of MSE.
NSE International Exchange
In the year 2016, NSE international exchange was introduce. It works as a substitute for NSE. The operating of this stock exchange will be done out of Gujarat global finance tec city.
Frequently Asked Questions
Q1 How many different types of stock exchanges in India are there?
Although, in India, the total count of the stock exchange is eight. The Name of those stock exchanges is Multi Commodity Exchange of India Ltd., Indian Commodity Exchange Limited, Metropolitan Stock Exchange of India Ltd., National Stock Exchange of India Ltd, National Commodity & Derivatives Exchange Ltd., and NSE IFSC Ltd.
Q2 Name of two essential stock exchanges of India? Also, mention the other types of stock exchanges in India names.
As explained in this article, the total number of stock exchanges in India is eight, but the most important and common ones are BSE and NSE. Because both stock exchanges have popular trading platforms, another stock exchange is BSE Ltd. National Stock Exchange of India Ltd., Metropolitan Stock Exchange of India Ltd, Calcutta Stock Exchange Ltd., National Commodity & Derivatives Exchange Ltd. Indian Commodity Exchange Limited,., Multi Commodity Exchange of India Ltd., and NSE IFSC Ltd.
Q3 Name of the oldest Indian stock exchanges?
BSE is the oldest one stock exchange in India
Final Thoughts
Hence, stock exchange provides the platform for every investor and trader for performing the act of buying and selling shares and stocks. Although one can buy the shares and stocks according to his choice, it is always suggest to do proper analysis and research of the particular company of which share you want to buy. It is always advisable to take the guidance of a well-experienced person in the share market, and for this, you must have enrolled in Best Share Market Course in Delhi.
