Chapter 5Intermediate~8 min

NSE and BSE in India

India's two main exchanges and how listing works.

India has two main stock exchanges: the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). You will see their short names everywhere, along with well-known indices such as the Nifty 50 (NSE) and the Sensex (BSE).

An 'index' is a single number that tracks the average movement of a chosen group of shares. The Nifty 50 tracks 50 large NSE-listed companies; the Sensex tracks a group of large BSE-listed companies. Indices summarise the market; they are not themselves something you buy.

A company can list on one or both

Listing is decided exchange by exchange. A company might be listed only on the BSE, only on the NSE, or on both. When a company's shares trade on more than one exchange, its price stays broadly similar on each, because traders quickly act on any gap.

National Stock Exchange (NSE)Bombay Stock Exchange (BSE)
Common short nameNSEBSE
Well-known indexNifty 50Sensex
ListingA company may or may not be listed hereA company may or may not be listed here

Fictional example: Sunrise Motors Ltd chooses to list on both the NSE and the BSE. Investors can trade its shares on either exchange, and a broker's app may show a single combined price.

How a share reaches you

Click each step to see what that part of the chain actually does.

Company

A business that decides to raise money by selling shares to the public. Once its shares are admitted to trading, it is 'listed'.

Money moves in the opposite direction: from your broker to the seller, once the trade settles.
See how a single company's shares can appear on more than one exchange.

Where regulation fits in

Regulation covers both exchanges. The Securities and Exchange Board of India (SEBI) oversees them, a topic we look at in the next chapter.

Key takeaways

  • India's two main stock exchanges are the NSE and the BSE.
  • Well-known indices include the Nifty 50 (NSE) and the Sensex (BSE).
  • A company can be listed on one exchange or both.
  • A share trading on two exchanges tends to have a broadly similar price on each.

Check your understanding

Every answer comes with an explanation — the goal is understanding, not a score.

Question 1 / 30%

Which are India's two main stock exchanges?

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