When you consider investing in the stock market, the first step is to open a demat and a trading account with an experienced stockbroker. This is because SEBI mandates that investors must open both accounts to buy and sell listed shares. Once you have opened the accounts, you can buy shares listed on Indian stock exchanges. A stock exchange is a regulated marketplace where securities, such as stocks and bonds, are listed and bought and sold by investors through their demat and trading accounts. However, for shares, some companies list them on the Bombay Stock Exchange, while some list them on the National Stock Exchange.

As both the stock exchanges differ slightly in their operations, a stock market investor needs to know their difference. This blog will help you understand the difference between BSE and NSE and help you understand both exchanges better.

• Stock exchanges facilitate the buying and selling of securities, providing platforms for investors to trade stocks, bonds, derivatives, and other financial instruments.
• The Bombay Stock Exchange (BSE) is one of India's oldest stock exchanges. It offers a platform for trading equities, derivatives, and other financial products.
• The National Stock Exchange (NSE) is India's leading stock exchange for trading equities, derivatives, and other financial instruments.

BSE, previously known as the Bombay Stock Exchange, is the oldest stock exchange in Asia and one of the oldest worldwide. It was founded in 1875 by Premchand Roychand and is currently headquartered in Mumbai, Maharashtra. In 1986, BSE introduced the Sensex as a stock market index to gauge its overall performance. The BSE Sensex (Sensitive Index) is the benchmark index of the BSE, comprising 30 large and well-established companies listed on the exchange. The current market capitalisation of all the listed companies on BSE is Rs. 4,69,21,832 crores. The stock exchange offers investments across asset classes, such as equity, commodity derivatives, currency derivatives and equity derivatives.

The National Stock Exchange (NSE) is one of India’s largest stock exchanges, and it was recognised by the Securities and Exchange Board of India (SEBI) in 1993. It commenced its operations in 1994 with the start of its wholesale debt market and then launched its cash market segment. NSE launched its flagship stock market index called Nifty 50 in 1995-96, consisting of 50 of the largest and most liquid stocks listed on the exchange. It is a key indicator of the Indian stock market’s performance. The current market capitalisation of all the listed companies on the NSE is Rs. 416.57 trillion. The NSE offers trading in equities, derivatives, debt instruments, mutual funds, and currency derivatives.

Here is a detailed table explaining the difference between BSE and NSE:

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are two of India's most important stock exchanges, with thousands of listed shares. The BSE is India’s oldest stock exchange, while the NSE is comparatively younger but the biggest of the two. Since companies can list on BSE, NSE or both, it is important to know the difference between the two as the prices slightly differ on both exchanges. Now that you know the difference between BSE and NSE, you can choose the stock exchange from which you want to buy the shares. However, ensure that you do prior research about the stock and the price difference before buying.