Number of Stock Exchanges in India

India currently has six major operational stock exchanges that support different segments of the financial market. While BSE and NSE account for most equity trading, other exchanges specialise in commodities and international markets. Here's a quick overview:

• Six major operational stock exchanges currently operate in India.
• BSE and NSE are the country's leading exchanges for equity trading.
• MCX is India's largest commodity derivatives exchange, while NCDEX focuses on agricultural commodity derivatives.
• India INX and NSE IFSC, located in GIFT City, provide platforms for international trading.
• Metropolitan Stock Exchange (MSE) continues to hold recognition with limited trading activity, while the Calcutta Stock Exchange (CSE) has applied for a voluntary exit from SEBI recognition.

India has six major operational stock exchanges that serve the equity, commodity, and international financial markets. Each exchange has a specific role, although the majority of stock market trading takes place on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The table below provides a list of stock exchanges in India.

Additional points to know

• Metropolitan Stock Exchange (MSE) continues to hold regulatory recognition but records very limited trading activity.
• Calcutta Stock Exchange (CSE) has applied for a voluntary exit from recognition after years of minimal trading activity.
• Most investors buying or selling shares in India trade through BSE or NSE.
• Commodity traders mainly use MCX and NCDEX, while international investors can access markets through India INX and NSE IFSC located in GIFT City.

Over time, India's stock market has become more centralised. Modern electronic trading, better technology, stronger regulations, and nationwide access have reduced the need for multiple regional exchanges.

Each stock exchange serves a different purpose within India's financial ecosystem. Some focus on equity trading, while others specialise in commodities or international financial products.

1. Bombay Stock Exchange (BSE)

Established in 1875, the Bombay Stock Exchange (BSE) is the oldest stock exchange in India and the oldest in Asia. Based in Mumbai, it has played a major role in the development of India's capital markets for nearly 150 years.

BSE offers trading across multiple asset classes, including equities, debt securities, mutual funds, exchange-traded funds (ETFs), derivatives, and currency products. Its benchmark index, the S&P BSE Sensex, tracks the performance of 30 well-established companies listed on the exchange and is widely regarded as an indicator of the Indian stock market's overall performance.

With approximately 5,647 listed companies, BSE has one of the largest numbers of listed companies in the world. Its long history, broad market coverage, and advanced electronic trading platform continue to make it one of India's most important financial institutions. Today, BSE remains a preferred listing destination for companies across different industries.

2. National Stock Exchange (NSE)

The National Stock Exchange (NSE) was incorporated in 1992 and began trading operations in 1994. It introduced fully electronic, screen-based trading to India, bringing greater transparency, speed, and efficiency to the country's financial markets.

Located in Mumbai, NSE provides trading in equities, derivatives, debt securities, exchange-traded funds, currency derivatives, and other financial instruments. Its flagship benchmark, the Nifty 50, represents 50 of India's largest and most actively traded companies across different sectors.

NSE has approximately 2,867 listed companies and consistently records the highest trading volumes in India's equity and derivatives markets. Its highly efficient trading infrastructure has made it one of the world's largest stock exchanges by trading activity. Today, most retail and institutional investors execute a significant share of their trades through NSE.

3. Multi Commodity Exchange (MCX)

The Multi-Commodity Exchange (MCX) was established in 2003 and is based in Mumbai. It is India's largest commodity derivatives exchange and provides a platform for trading futures and options on commodities such as gold, silver, crude oil, natural gas, copper, aluminium, zinc, and agricultural products.

MCX operates several commodity indices, including BULLDEX, METLDEX, and ENRGDEX, which track the performance of different commodity segments. These indices help market participants understand price movements across metals, energy, and broader commodity markets.

MCX became the first commodity exchange in India to be listed on both BSE and NSE. It plays an important role in price discovery and risk management by allowing businesses, producers, traders, and investors to hedge against fluctuations in commodity prices.

4. National Commodity and Derivatives Exchange (NCDEX)

The National Commodity and Derivatives Exchange (NCDEX) was also established in 2003 and is based in Mumbai. Unlike MCX, which focuses on a wide range of commodities, NCDEX primarily specialises in agricultural commodity derivatives.

The exchange facilitates trading in commodities such as cereals, pulses, oilseeds, spices, guar seed, and other agricultural products. Its benchmark index, AGRIDEX, reflects price trends in India's agricultural commodity market.

NCDEX supports farmers, traders, processors, exporters, and businesses by providing an organised marketplace where commodity prices are discovered transparently. Futures contracts traded on the exchange also help market participants manage the risks associated with changing agricultural prices, making NCDEX an important part of India's agricultural economy.

5. India International Exchange (India INX)

Launched in 2017, India International Exchange (India INX) is India's first international stock exchange. It operates from GIFT City (Gujarat International Finance Tec-City) in Gujarat, India's international financial services hub.

India INX provides trading across a wide range of financial products, including equities, equity derivatives, currency derivatives, commodity derivatives, debt securities, exchange-traded products, and global depository receipts. The exchange was created to improve India's presence in international financial markets and attract global investors.

Its advanced technology platform supports fast order execution and extended trading hours, allowing participants from different time zones to access the market more conveniently. India INX has become an important gateway for international investment linked to India.

6. NSE International Exchange (NSE IFSC)

The NSE International Exchange (NSE IFSC) was established in 2016 and also operates from GIFT City, Gujarat. It serves international investors by offering products that are denominated in foreign currencies and designed for cross-border trading.

The exchange provides trading in equity derivatives, currency derivatives, debt securities, structured products, exchange-traded funds, and other international financial instruments. Its extended trading hours help investors participate in global markets beyond regular Indian market timings.

NSE IFSC complements India's growing international financial ecosystem by connecting domestic and overseas investors through a modern, globally competitive trading platform. As GIFT City continues to expand as an international financial centre, the importance of NSE IFSC is expected to grow further.

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are India's two largest stock exchanges and account for almost all equity trading in the country. Although both offer similar investment opportunities, they differ in terms of history, benchmark indices, trading systems, and market focus.

For most retail investors, choosing between BSE and NSE is usually not necessary. Shares of many companies are listed on both exchanges, and investors can access them through a single Demat and trading account provided by their stockbroker.

Before the introduction of nationwide electronic trading, India had more than 20 regional stock exchanges serving investors in different cities. These exchanges helped local businesses raise capital and allowed investors to trade securities within their regions.

However, their importance gradually declined due to several developments:

• Electronic trading made it possible for investors across the country to trade on BSE and NSE from anywhere.
• Better technology improved speed, efficiency, and transparency.
• Trading activity became concentrated on larger exchanges with greater liquidity.
• SEBI introduced stricter regulatory requirements, including a minimum net worth of ₹100 crore and mandatory clearing corporation arrangements for recognised exchanges.

Key facts

Today, nearly all equity trading in India is concentrated on BSE and NSE, making them the primary exchanges for investors and listed companies.

All recognised stock exchanges in India operate under the supervision of the Securities and Exchange Board of India (SEBI), which was established under the SEBI Act, 1992. SEBI regulates the securities market to promote transparency, protect investors, and ensure the smooth functioning of financial markets.

Some of SEBI's key responsibilities include:

• Granting, suspending, or withdrawing recognition of stock exchanges.
• Setting listing requirements and continuous disclosure standards for listed companies.
• Supervising trading systems, clearing corporations, and settlement processes.
• Protecting investors through grievance redressal mechanisms and market surveillance.
• Prescribing regulatory requirements, including minimum net worth criteria for recognised stock exchanges.

For exchanges operating in GIFT City, namely India INX and NSE IFSC, the International Financial Services Centres Authority (IFSCA) also acts as the regulator. This dual regulatory framework supports the development of India's international financial services ecosystem while maintaining high standards of governance and investor protection.

India has six major stock exchanges, each serving a specific role in the country's financial markets. While BSE and NSE are the primary exchanges for equity trading, MCX, NCDEX, India INX, and NSE IFSC support commodity and international trading. Knowing the role of these exchanges can help you better understand how India's financial markets work and make more informed investment decisions.

If you want to invest or trade in securities listed on these exchanges, you will need a Demat and trading account. Before you begin, compare the available options, understand the costs involved, and choose an account that best suits your investment needs.