How Many Stock Exchanges Are There In India: A company that wants to get listed on a stock exchange needs to enter into an agreement with the exchange.
This agreement ensures that securities of that particular company are allowed for trading on that exchange. Stock exchanges play a pivotal role in the creation of liquidity for financial securities.
The main source of income for stock exchanges comes from levying fees on the trading members. Some of the renowned stock exchanges in India are the Bombay Stock Exchange, the National Stock Exchange of India, etc.
While most individuals are aware of these top-notch stock exchanges, some other stock exchanges are there in India which help in generating liquidity.
How Many Stock Exchanges Are There In India – List of stock exchanges
Read on to find out How Many Stock Exchanges Are There In India, and to know whether they are permanent.
BSE Ltd. (Formerly Bombay Stock Exchange)
Several stock exchanges are there in India have helped in capital raising, but BSE Ltd. has been one of the oldest stock exchanges. BSE (which was earlier known as Bombay Stock Exchange) was established in 1875 and is Asia’s first & fastest stock exchange in the world which has a speed of 6 microseconds.
It has been categorized as one of India’s leading exchange groups. Over the past 143 years, BSE has been able to enable the growth of the Indian corporate sector as it has offered an efficient capital-raising platform.
Known as BSE, the bourse was initially established in the name of ‘The Native Share & Stock Brokers’ Association’ in 1875. However, in 2017, BSE was the 1st listed stock exchange in the country.
Now, BSE offers a transparent market for trading in asset classes such as equity, debt instruments, etc. BSE SME is the country’s largest SME platform, listing more than 250 companies. This platform continues to grow at a steady pace.
BSE’s popular equity index, S&P BSE SENSEX, is the country’s most widely followed stock market benchmark index. BSE Ltd has permanent recognition.
National Stock Exchange of India Ltd. (NSE)
The National Stock Exchange of India Ltd. (NSE) was incorporated in 1992. It was recognized as a stock exchange by the Securities and Exchange Board of India (SEBI) in Apr 1993, and it commenced operations in the year 1994 by launching a wholesale debt market.
This was followed shortly after the launch of the cash market segment. Between the years 1994 and 2016, NSE expanded its lines of business and product offerings and it achieved several milestones.
NSE aims to catalyze the country’s growth story by creating opportunities for investment, enabling access, and empowering stakeholders. This exchange continues to work harder, smarter and faster to deliver impact in the investing community.
Just like BSE Ltd, NSE has permanent recognition. Apart from these two popular and renowned exchanges, several other stock exchanges are there in India. Following are other stock exchanges.
Calcutta Stock Exchange Ltd.
The Calcutta Stock Exchange (CSE) is a stock exchange which has been located in Kolkata, India. CSE is the second oldest stock exchange which is situated in South Asia.
The exchange offers its members significant opportunities to trade in capital markets and F&O markets of the Bombay Stock Exchange (BSE) and National Stock Exchange of India Limited (NSE).
During its incorporation in 1908, the stock exchange had 150 members. Now, the total membership increased to 900+, containing a range of corporate and institutional members.
The number of companies which are listed on the exchange is 3,500+. The annual turnover of CSE in 1997-98 was ~INR1,78,779 crores. CSE has permanent recognition.
Metropolitan Stock Exchange of India Ltd.
Metropolitan Stock Exchange of India Limited (MSE) has been recognized by the Securities and Exchange Board of India (SEBI) as per Section 4 of the Securities Contracts (Regulation) Act, 1956.
The exchange offers an electronic, transparent, and tech-enabled platform for use in trading in capital markets, F&O, currency derivatives, and debt market segments.
It started its operations in the currency derivatives segment on Oct 7, 2008. This was done under the regulatory framework of SEBI and RBI. This exchange has recognition up to Sep 15, 2023.
Multi Commodity Exchange of India Ltd.
Multi Commodity Exchange of India Limited (MCX) has been categorized as the country’s first listed exchange. This is a state-of-the-art commodity derivatives exchange that enables online trading of commodity derivatives transactions.
Therefore, it offers a platform for price discovery and risk management. Starting operations in Nov 2003, MCX carries out operations under a regulatory framework set by SEBI. MCX has permanent recognition.
National Commodity & Derivatives Exchange Ltd.
National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally managed online, multi-commodity exchange. This exchange focuses on revolutionizing the country’s agricultural sector.
It has been categorized as India’s largest agricultural derivatives exchange, having a market share of ~75% in agricultural derivative contracts for FY21.
Incorporated on Apr 23, 2003, as a public limited company, NCDEX started its operations on Dec 15, 2003, as a recognized association under The Forward Contracts (Regulation) Act, of 1952. NCDEX has permanent recognition.
Indian Commodity Exchange Limited
Indian Commodity Exchange Ltd. (ICEX) offers commodities exchange services. It provides trading platforms for derivatives of precious metals, industrial metals, spices, oil complexes, energy products, fibers, etc.
This exchange serves farmers, traders, and actual users. ICEX has permanent recognition. It is registered with SEBI and the exchange provides derivatives trading in diamond contracts.
Also Read: What is the Securities and Exchange Board of India? – Structure, Power & Functions of SEBI!
While many stock exchanges are there in India, the selection of a particular exchange depends entirely on the stocks in which an individual wants to invest or trade. For example, BSE is listed only on NSE.
Therefore, if an investor expects BSE to grow, he may think of investing in it on a long-term basis. In such a case, he/she has to go for NSE. More often than not, stocks are listed in both BSE and NSE.
That’s all for the post on How Many Stock Exchanges Are There In India, We hope you enjoyed reading it. Happy Investing!
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