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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.

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.

How Many Companies are Listed in the Bombay Stock Exchange (BSE)?

According to data provided by the Bombay Stock Exchange (BSE) as of January 24, 2024, there are a total of 5,309 listed companies on BSE. However, it's important to mention that this figure excludes shares such as DVRs, REITs, InVITs, ETFs, and Partly Paid Shares. The market capitalization of these listed companies on BSE amounts to ₹37,636,886.59.

How Many Companies are Listed in the National Stock Exchange (NSE)?

As of December 31, 2023, the National Stock Exchange (NSE) boasts a listing of 2,266 companies. It's worth noting that among these, 76 companies are currently not available for trading. The total market capitalization of these listed companies on the NSE stands at ₹3,581,291,532. 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

In conclusion, the Indian stock market landscape reflects a dynamic environment characterised by a substantial number of companies seeking listing on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). As of December 31, 2023, 2,266 are the total companies listed in the NSE. While this figure illustrates the scale of listings, it's important to note that not all listed companies are available for trading at all times. Currently, 76 companies listed on the NSE are not available for trading.

Similarly, the BSE's listing, totaling 5,309 companies as of January 24, 2024, excludes certain categories of shares. All these contribute to the total listed companies in India.

Despite these nuances, the combined market capitalisation of listed companies on both exchanges underscores the significant economic value within India's capital markets.

For investors navigating the Indian stock market, these insights emphasise the importance of informed decision-making and thorough research. Staying abreast of market dynamics and leveraging resources effectively are crucial steps in maximizing investment potential. Additionally, establishing an active Demat account is essential for seamless engagement with the market, enabling investors to capitalise on opportunities presented by stocks and upcoming IPOs.

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.

In summary, while the Indian stock market offers promising avenues for investment and growth, strategic planning and a comprehensive understanding of market dynamics are essential for investors to thrive.