What it means
Both are in Mumbai, and most large companies are listed on both at almost identical prices. The NSE handles the bulk of trading in shares and especially in derivatives. The BSE, founded in 1875, is the oldest exchange in Asia. Both are regulated by SEBI and keep the same trading hours.
In practice
For an investor the choice of exchange rarely matters: the same share costs almost the same on both, and the broker routes the order. For a trader it matters more, because the NSE has far deeper trading in most shares and in Nifty derivatives, which means tighter spreads and easier fills.
Each exchange runs its own indices and its own derivatives, with separate expiry days, so traders who use options follow both calendars.
What to watch for
A small number of shares are listed on only one exchange, and thinly traded ones can have wide spreads and price bands that lock. A share bought on one exchange can be sold on the other only after it has reached your demat account.
Related terms
5 terms- ExchangeAn organised marketplace where buy and sell orders meet in one central order book, under one set of rules.
- SEBIThe Securities and Exchange Board of India: the regulator of India's stock exchanges, brokers, mutual funds and listed companies.
- Nifty 50The benchmark index of India's National Stock Exchange, tracking 50 of the largest companies listed on it.
- SensexThe benchmark index of the Bombay Stock Exchange, tracking 30 large, well-established Indian companies.
- Indian market hoursIndian stock exchanges trade from 9:15 am to 3:30 pm India time, Monday to Friday, with a pre-open session from 9:00 am.