A stock exchange helps you trade (buy/sell) stocks. It makes the auctioning process seamless. In India, a stock exchange must stringently follow the rules and regulations of the Securities and Exchange Board of India (SEBI). It is the securities market watchdog in India. A stock exchange in India that follows SEBI rules makes sure that your money remains secure while trading equities. A good stock exchange ensures that price discovery takes place faster.
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The National Stock Exchange (NSE) is the largest stock exchange in India. In terms of market capitalisation, it is also the eleventh-largest stock exchange in the world. You can trade in seven capital market categories at the NSE. They are equities, futures and options (F&O), mutual funds, debt market (both wholesale and retail), currency futures, and lending/borrowing of stocks.
Founded in November 1992, it is headquartered in Mumbai. However, the trading operation started in 1994 after SEBI recognised it as a stock exchange. It is also the first Indian stock exchange to provide its traders with fully computerised electronic trading facilities.
Founded in July 1875, the Bombay Stock Exchange (BSE) is the first stock exchange in Asia, headquartered in Mumbai. However, the Government of India officially recognised it under the Securities Contracts Regulation Act as a stock exchange in August 1957. In 2012, it also joined the initiative of the United Nations Sustainable Stock Exchange.
Currently, it is the fastest exchange in the world, as the median speed of trade of this exchange is 6 microseconds. The total number of stocks listed on the BSE is around 5,000. The most important index of this stock exchange is the Sensex. Other major indices are Bankex, BSE 100, BSE 200, Reality Index, and many more.
At GIFT IFSC, it is the first international exchange. Founded in January 2017, the India International Exchange (India INX) was inaugurated by Indian Prime Minister Narendra Modi. It is regulated by the International Financial Services Centre (IFSC), which works under the Indian Finance Ministry. The India INX exchange is located in Gujarat's Gandhinagar.
Here, you can trade products of the financial market in this exchange for 22 hours. Most investors/traders trade currency/commodity derivatives, stock/index derivatives, and debt securities. You can also raise cash quickly and in a transparent way through the Global Securities Market platform, which was launched by the Indian INX exchange.
NSE International Exchange (NSE IFSC Limited) is a fully owned subsidiary of the NSE. This SEBI-approved stock exchange was incorporated on 29 November 2016. It is located in Gujarat's Gandhinagar. However, trading on the NSE IFSC Limited started on 5 June 2017. Here, you can trade on debt securities and derivatives, including stocks, indices, commodities, and currencies.
Metropolitan Stock Exchange of India Ltd. (MSE), the SEBI-recognised stock exchange, offers a highly advanced and transparent electronic trading platform. Here, you can trade in various markets, including capital markets, debt markets, F&O, and currency derivatives. MSE launched its flagship SX40 index on 9 February 2013. The actual trading of SX40 started on 11 February 2013.
If you want to trade stocks, bonds, or derivatives in India securely, you may choose from the above-mentioned stock exchanges. They are highly regulated, liquid, and government-recognised exchanges that support advanced trading. You may also explore Indonext, which is promoted by the BSE. Some of the regional stock exchanges that are part of Indonext are the Interconnected Stock Exchange of India, the Bangalore stock exchange, the Madras stock exchange, the Vadodara stock exchange, and the Ludhiana stock exchange. If you want to trade only in companies under the SME segment, you may also choose OTCEI, also known as Over the Counter Exchange of India.