How Many Companies are Listed in the Indian Stock Market?
There is no specific limit to the number of companies that can be listed on the Indian stock market. And with every passing year, an increasing number of Indian companies are choosing to get themselves listed.
With the introduction of dedicated platforms for Small and Medium Enterprises by both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), the number of small entities opting to list their businesses has gone up as well.
But then again, how many companies are listed in the Indian stock market? If you’re someone who is wondering about such a thing, here’s the answer.
How Many Companies are Listed in the Indian Stock Market?
In India, there are two primary stock exchanges - the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Some companies choose to get themselves listed in just one exchange, whereas others prefer getting listed on both of them for better visibility. Due to this, the number of companies listed on both of these exchanges tends to vary.
Companies listed in the Bombay Stock Exchange (BSE)
According to the metrics on the website of the Bombay Stock Exchange, around 5,311 companies have listed their shares in the exchange as of January 13, 2023. The total market capitalization of all of the companies listed on BSE comes up to around Rs. 2,82,13,564 crores. This list only includes companies and excludes mutual funds, Exchange Traded Funds (ETFs), REITs, InVITs, shares with Differential Voting Rights (DVRs), and companies listed in the SME platform of BSE.
Companies listed in the National Stock Exchange (NSE)
According to the website of the National Stock Exchange, around 2,113 companies have been listed on the exchange as of December 31, 2022. The total market capitalization of all of the companies listed on the NSE comes up to around Rs. 2,75,67,268 crores. Mutual funds, Exchange Traded Funds (ETFs), REITs, InVITs, shares with Differential Voting Rights (DVRs), and companies in the SME platform of NSE have not been included in this list.
How to List a Company in the Indian Stock Market?
Listing a company in the Indian stock market involves several steps, including meeting eligibility criteria set by the SEBI, appointing a merchant banker, obtaining in-principle approval from the stock exchange, filing a draft prospectus with SEBI and the stock exchange, obtaining various clearances and approvals, determining the pricing of the issue, launching the IPO and inviting subscription from the public, allotment of shares, and finally listing the company's shares on the stock exchange for trading. It's a complex and time-consuming process and may require the help of professionals such as lawyers and accountants.
Conclusion
While this should have given you a fair idea of how many companies are listed in the Indian stock market, there’s something that you should understand. Not all of the companies that are listed on stock exchanges are actively traded. One might even be suspended from trading or may witness very low liquidity.
So this is something that you should keep in mind before attempting to trade in the stock market. Another major thing that you should account for is the presence of an active Demat account. Without one, you cannot trade in the Indian stock market. So, make sure to open a Demat account first before attempting to invest in stocks or upcoming IPOs. You can head over to the website of Motilal Oswal to open one today.
