Stock Exchange and role of BSE and NSE

Stock Exchange and role of BSE and NSE

What is a stock exchange?

It is a form of exchange which provides services to traders to buy or sell bonds or other securities.

There are 23 stock exchanges in India.

National Stock Exchange – NSE was established in 1992 under the authorization of IDBI.


- deals with the trading of equity shares, bonds and government securities.
- informs the applicants about capital market rules and regulations.
- ensures equal access to all the investors through a proper communication channel.
- plays the role of a catalytic agent in reforming the market.

Bombay Stock Exchange – BSE is the oldest stock exchange in India. It was established in 1875 under the name β€œThe Native Share and Stock Broker Association.”

- It functions as the first level regulator in the security market.
- It monitors mechanisms which may detect manipulations in the stock market.
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