4.7 The National Stock Exchange (NSE)

Hanumant Dhokle

NSE

Incorporated in 1992 as a corporate entity and recognised in 1993, the National Stock Exchange (NSE) revolutionised the Indian stock markets as it brought technology into trading. This technology-based trading reached all the corners of the country and encouraged retail investors to participate in the stock exchanges. It grew in a short period of time as it was easy for traders to participate in screen-based trading (SBT) which made the NSE the biggest stock exchange in the country in terms of daily turnover. The NSE’s trading system is called the National Exchange for Automated Trading (NEAT). NSE operates three market segments, the Capital Market segment (CM), Futures & Options Market segment (F&O) and the Wholesale Debt Market segment (WDM).

The BSE And The NSE Over The Years

Year No Of Companies Listed Traded Quantity
(In Lakhs)
Turnover
(Rs Crore)
Market Capi-talisation
(Rs Crore )
  BSE NSE BSE NSE BSE NSE BSE NSE
1994-95 4702 135 107248 1391 67749 1805 468837 363350
2004-05 4731 970 477171 797685 518715 1140072 1698428 1585585
2005-06 4781 1069 664455 844486 816074 1569558 3022190 2813201
2006-07 4821 1228 560777 855456 956185 1945287 3545041 3367350
2007-08 4887 1381 986010 1498469 1578857 3551038 5138014 4858122
Source: SEBI Handbook 2008

Look at the above table. The number of listed companies is more and market capitalisation is more with the BSE. Whereas the quantity of trade and overall turnover is more with the NSE.

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