NSE vs BSE: Key Differences

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NSE vs BSE: Key Differences

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Both NSE and BSE are major stock exchanges in India. NSE stands for National Stock Exchange. On the other hand, BSE stands for Bombay Stock Exchange. In this blog post, we shall understand the difference between NSE and BSE. If you’re interested in trading or investing, learning about both of these stock exchanges is essential.

What is NSE?

NSE full form is National Stock Exchange. It is one of two major securities exchanges in India. It is considered to be the largest securities exchange in India, and the fifth largest stock exchange in the world (by market capitalization). 

The NSE was established on 27 November, 1992. It was the first electronic exchange in India. In 1993, it was recognized as a stock exchange under Securities Contracts Regulation Act 1956. Then, in 1994, it came up with its flagship index NIFTY 50, which comprises 50 major stocks. The depository of NSE is National Securities Depository Limited.

What is BSE?

BSE full form is Bombay Stock Exchange. It is the oldest securities exchange not only in India but the entire Asian continent. In the world, it is the tenth oldest securities exchange. It is the second largest securities exchange in India, and the sixth largest in the world (by market capitalization). 

The BSE was established on 9 July, 1875. Back then, it was known as the Native Share & Stock Brokers' Association. In 1957, it became the first exchange in the country to be granted permanent recognition under the Securities Contracts Regulation Act 1956. The depository of BSE is Central Depository Services Limited.

NSE vs BSE: Major Differences

Here are the major differences between NSE and BSE. By going through them, you will be able to learn how NSE and BSE differ from each other:

S.No.

Parameters

NSE

BSE

1.

Full Form

NSE full form is National Stock Exchange.

BSE full form is Bombay Stock Exchange.

2.

Date of Establishment

It was established on 27 November 1992.

It was established on 9 July 1875.

3.

Benchmark Index

Its key index is NIFTY 50. This index comprises top 50 companies on the basis of market capitalization.

Its key index is SENSEX 30. This index comprises 30 of the largest and most actively traded companies listed on BSE.

4.

Depository

The depository of NSE is National Securities Depository Limited (NSDL).

The depository of BSE is Central Depository Services (India) Limited (CDSL).

5.

Listed Companies

More than 2500 companies are listed on NSE (as of 2025).

More than 5500 companies are listed on BSE (as of 2025).

6.

Trading Volume & Liquidity

NSE offers higher liquidity due to higher trading volume.

BSE offers lower liquidity due to lower trading volume.

7.

Suitable for

Day traders and investors looking for quick transactions.

Long term investors and traders who value historic presence of BSE.

8.

Product Offerings

Its product offerings include currency, equity, corporate bonds, traded funds, mutual funds, IPO, institutional placement program, security lending and borrowing scheme and offer for sale.

Its product offerings include equity, currency, mutual funds, traded funds, corporate bonds, offer for sale and commodity derivatives.

9

Ranking

It is the 5th largest securities exchange in the world, by market cap.

It is the 6th largest securities exchange in the world, by market cap.

10.

SME IPOs Platform

NSE has a special platform for SME IPOs known as NSE Emerge.

BSE has a special platform for SME IPOs known as BSE SME.

Conclusion

In this blog post, we discussed NSE vs BSE. Both of them are popular stock exchanges in India. Established in 1875, BSE is the oldest securities exchange in Asia. NSE was established in 1992. NSE has a higher trading volume and liquidity as compared to BSE. However, BSE has a higher number of listed companies compared to NSE. 

Generally, NSE is considered a better option for day traders and investors who want to make fast transactions. However, many individuals looking for long term investment often opt for BSE. Both of them are strictly regulated by the Securities and Exchange Board of India. Therefore, you don’t need to worry about their credibility at all. 

Frequently Asked Questions (FAQs)

Q1. Which is the oldest securities exchange in Asia?

A. BSE in India is the oldest securities exchange in Asia. It was established in 1875.

Q2. When was NSE established?

A. It was established in 1992. Then, in 1993, it became a recognized exchange under Securities Contracts Regulation Act 1956.

Q3. What is the key index of NSE?

A. The key index of NSE is NIFTY 50. It comprises the top 50 companies by market cap.

Q4. What is the key index of BSE?

A. The key index of BSE is SENSEX 50, which comprises the top 30 companies on the exchange.

Q5. What is the depository of BSE?

A. BSE’s depository is Central Depository Services (India) Limited (CDSL).

Q6. What is the depository of NSE?

A. NSE’s depository is National Securities Depository Limited (NSDL).

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