Questions and Answers
Which of the following stock exchanges is the oldest in India?
What is the benchmark index of BSE?
Which stock exchange has a higher market capitalization?
What products are offered by both BSE and NSE?
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Where is BSE located?
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What is the ranking of BSE in terms of market capitalization globally?
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What is the benchmark index of NSE?
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What type of Mutual Funds are mentioned in the content?
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Which of the following global indices is available for trading in Rupee-denominated futures on the NSE?
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What type of debt instrument is not mentioned in the content?
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What is the name of the sovereign gold bond offered by the NSE?
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What is the name of the platform used for non-competitive bidding in government securities?
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What is the primary difference between the trading platforms used by BSE and NSE?
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Which of the following is a consequence of lower trading volumes on the BSE?
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What is the primary reason for the difference in the number of listed companies on BSE and NSE?
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What type of products does the BSE offer in the primary market?
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What is a key advantage of the NSE's electronic trading platform?
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Study Notes
Stock Exchanges in India
- India has two leading stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE)
Bombay Stock Exchange (BSE)
- Established in 1875, making it the oldest stock exchange in India
- Located at Dalal Street, Mumbai
- BSE's benchmark index is the Sensex, which tracks the top 30 companies across various sectors
- Has an overall market capitalization of over Rs 118.80 crore as of October 19, 2021, ranking among the 10 most valued exchanges globally
- Offers equities, equity derivatives, commodities, and currency derivatives
- Official website: BSE Website
National Stock Exchange (NSE)
- Established in 1992 and started trading in 1994
- Although younger than BSE, NSE is the largest stock exchange in India
- NSE's benchmark index is the Nifty 50, representing the top 50 companies listed on the exchange
- Has a market capitalization of around Rs 199 trillion
- Offers equity and equity derivatives instruments, commodities, and currency derivatives
Trading Platform
- BSE uses BOLT (BSE On-Line Trading) for electronic trading, which may not be as advanced as NSE's platform.
- NSE has a fully automated, screen-based trading system, offering greater transparency, faster execution, and wider accessibility.
Liquidity
- BSE has lower trading volumes compared to NSE, resulting in lower liquidity.
- NSE has significantly higher trading volumes, making it a more liquid market.
Listed Companies
- BSE has a wider range of listed companies, exceeding 5,309, including many smaller and lesser-known companies.
- NSE has a more selective listing process, with around 2,266 companies listed, which tend to be larger and more established companies.
Products Offered
- BSE offers a range of products, including primary market instruments (IPOs, FPOs, etc.), secondary market instruments (equities, derivatives, etc.), global indices, ETFs, debt market products, and more.
- NSE offers a wider array of products beyond equities, including derivatives, currency derivatives, mutual fund units, and more.
Benchmark Indices
- BSE Sensex is a benchmark index that tracks the performance of the top 30 companies listed on the exchange.
- NSE Nifty 50 is a benchmark index that reflects the performance of the 50 largest companies by market capitalization on the NSE.
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Description
Learn about the two leading stock exchanges in India, the Bombay Stock Exchange and the National Stock Exchange, including their history, location, and benchmark indices.
