In India, there are various stock exchanges. Among them, the most prominent ones are the NSE, BSE and MSE. In this blog post, we shall discuss the key differences between all three of them.
Whether you are planning to invest in the stock market or planning to become a stockbroker acting on behalf of clients, understanding the differences between these exchanges is highly recommended.
In the table below, we have clearly explained the main differences between the NSE, BSE and MSE:-
|
Parameter |
NSE |
BSE |
MSE |
|
Full Form |
NSE full form is National Stock Exchange. |
BSE full form is Bombay Stock Exchange. |
MSE full form is Metropolitan Stock Exchange. |
|
What are they? |
NSE is the largest stock exchange in India. Globally, it is the sixth largest exchange. It is known for its high trading volume and electronic trading system. |
BSE Limited is the oldest stock exchange in Asia. It is the second largest stock exchange in India and the ninth largest globally. . |
MSE is a SEBI-recognized stock exchange that provides an electronic platform for trading in various financial market segments. However, it isn’t large like NSE and BSE stock exchanges. |
|
Year of Establishment |
NSE was established in the year 1992. |
BSE was established in the year 1875. Back then, it was known as the Native Share & Stock Brokers' Association. |
MSE (Metropolitan Stock Exchange of India) was established in the year 2008. It faced a lot of prolonged operational and business challenges, including low trading activity and liquidity constraints. On 27 January 2026, the MSE decided to upgrade its trading systems and market infrastructure and relaunched equity cash trading to strengthen its market position. |
|
Head Office |
Head Office Address of NSE is: National Stock Exchange of India Ltd., Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051, Maharashtra, India |
Head Office Address of BSE Ltd is: Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001, Maharashtra, India |
Head Office Address of MSE is: 205(A), 2nd Floor, Piramal Agastya Corporate Park (Piramal Corporate Park), Kamani Junction, L.B.S. Road, Kurla (West), Mumbai – 400070, Maharashtra, India |
|
Year of IPO Launch |
NSE launched its IPO in 2026. |
BSE launched its IPO in 2017. |
MSE has not launched its IPO. |
|
Benchmark Index |
NIFTY 50 is the flagship index of NSE. |
SENSEX 30 is the flagship index of BSE. |
SX40 is the flagship index of the MSE. |
|
Cycle of Settlement |
T+1 settlement through NSE Clearing Limited. |
T+1 settlement through BSE Clearing Limited. |
T+1 settlement through Metropolitan Clearing Corporation of India Limited. |
National Stock Exchange is India’s largest stock exchange by trading volume and market capitalization. Globally, it is the 6th largest exchange. NSE was incorporated as a public company on 27 November 1992 under the provisions of the Companies Act, 1956. Then in the next year, i.e., 1993, it was recognized as a stock exchange under the Securities Contracts Regulation Act, 1956.
The National Stock Exchange of India was established with the support of the Government of India and major public financial institutions like IDBI rather than being founded by any single individual.
It became the first stock exchange in India to introduce a fully automated screen-based electronic trading system. This system, known as NEAT (National Exchange for Automated Trading), was officially launched on 23 July 1994. Later on, this system evolved into NEAT+ platform.
Bombay Stock Exchange (BSE) Ltd. is the second-largest stock exchange in India by trading volume and market capitalization. Globally, it is the ninth largest exchange. BSE was founded in 1875 and is the oldest stock exchange not only in India but also in Asia. BSE was founded by Premchand Roychand.
He was a stockbroker, cotton merchant and businessman. Back then, BSE was known as the Native Share & Stock Brokers' Association. In 1899, the association acquired and inaugurated a permanent trading hall known as the Brokers' Hall on the Dalal Street.
On 31 August 1957, BSE became the first stock exchange in country to receive recognition from Government of India under Securities Contracts (Regulation) Act. On 14 March 1995, BSE introduced its electronic trading system BOLT (BSE On-line Trading).
The Metropolitan Stock Exchange of India is a leading stock exchange recognized by SEBI. It was established in 2008 and was earlier known as MCX Stock Exchange (MCX-SX). Jignesh Shah and other entities were involved in its establishment.
However, MSE faced many challenges due to low trading volumes as well as limited market activity. As a result, its operations remained pretty limited for several years. In 2026, MSE received investments of around Rs. 1,240 crore to support its revival.
Major brokerage firms like Groww (Billionbrains Garage Ventures) and Zerodha (Rainmatter Investments) were among the investors. To strengthen its market position, MSE also restarted equity cash trading.
NSE, BSE and MSE are leading stock exchanges in India, each with its own unique history and market position. NSE was established in 1992 and is the largest stock exchange in India by trading volume and market capitalization. BSE, established in 1875, is the oldest stock exchange in Asia, not only India. It is the second largest stock exchange in the country.
MSE was established in 2008, which makes it younger than BSE and NSE. In past, this stock exchange faced several challenges due to low trading activity. However, in 2026, it relaunched equity cash trading to strengthen its market position through support of Groww and Zerodha and other leading industry players in the market.
If you are planning to become a stockbroker, you must complete the required stockbroker registration process with SEBI and meet all the prescribed stock exchange requirements. For assistance with the process, get in touch with our consultants at Registrationwala.
Q1. How many stock exchanges are there in India?
A. In India, there are a total of 6 stock exchanges: (i) National Stock Exchange, (ii) Bombay Stock Exchange, (iii) Metropolitan Stock Exchange, (iv) National Commodity & Derivatives Exchange Ltd., (v) Calcutta Stock Exchange and (vi) Multi Commodity Exchange of India Ltd.
Q2. Which is the oldest stock exchange in India?
A. BSE, which was established in 1875, is India’s oldest stock exchange.
Q3. Which is the largest stock exchange in India by trading volume?
A. By trading volume, the National Stock Exchange is India’s largest stock exchange.
Q4. What was BSE originally known as?
A. When BSE was established in 1875, it was known as Native Share & Stock Brokers' Association.
Q5. When did the MSE relaunch equity cash trading?
A. MSE officially relaunched equity cash trading on 27 January 2026.
Q6. Has MSE launched its IPO?
A. No. MSE stock exchange has not launched its IPO unlike the BSE and NSE stock exchanges.
Q7. What is Metropolitan Clearing Corporation of India Limited?
A. It is a SEBI-recognized clearing corporation that provides novation, risk management, clearing and settlement services for trades executed on Metropolitan Stock Exchange of India (MSEI) platform. It is a wholly owned subsidiary of MSE.
Q8. What is T+1 settlement?
A. It means that securities transactions are finalized/completed one business day after the trade date.
Q9. Was BSE founded by a stockbroker?
A. Yes. BSE was founded by a stockbroker named Premchand Roychand on 9 July 1875. He was also an influential businessman and a cotton merchant. Back then, BSE was known as the Native Share and Stock Brokers' Association.
Q10. How can I list my company on a stock exchange like NSE, BSE or MSE?
A. To list your company on a stock exchange, you must meet the eligibility criteria, appoint a SEBI-registered merchant banker and complete all the required regulatory and documentation formalities. You can get in touch with us for more detailed information.
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Disclaimer:- Please note that the information in this blog is for general informational purposes only. Our readers are, therefore, advised to verify latest details from official sources before making any investment/business decisions. |
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, finance and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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