Working on Indian stocks exchange – NSE and BSE
To understand the working of NSE and BSE we must need to know what are NSE and BSE.
What is BSE?
BSE stands for Bombay Stock Exchange situated on Dalal street, Mumbai (It’s same as New York exchange on Wall Street), We proud to say that BSE is the Asia first stock exchange established on 1875 stands 11th by market capitalization of the world, and number one in India is Bombay stock exchange. The index of BSE known as SENSEX, its type of list of Indian strongest companies listed in BSE is about 30. This company has a major role in trading in BSE exchange.
What is NSE?
NSE stands for National stock exchange; it’s also located in Mumbai, it’s India’s first fully automated electronic exchange and second major stock exchange in India after BSE. The index of this exchange is NIFTY where 50 topmost companies in the NSE become benchmarks stock market index. As 50 company stocks in NIFTY, but they will not perform well can be changed or removed from index share and shift another best performer of the market, called NIFTY 50.
Who regulates them?
Security of stock exchange of India – SEBI, is the regulatory authority for Indian stock market. This was come in the figure in 1988, to protect the investor in the stock market and also promote the development and regulate the share market also known as security market. SEBI governed the activities of Indian stock exchange.
How NSE and BSE works?
The shares trading in the Indian market through two stock exchanges, as discussed BSE and NSE. Both exchanges follow the same techniques, trading hours, settlement process and regulation, etc. Almost all top Indian firms are listed on these exchange may be in BSE or In NSE or may be in both. The investor comes through any electronic media to trade in this exchange to buy the share as order matching is done by the trading computer, (Rate matching of Buyer and Seller). The buying order is placed by the investor are automatically match with the seller rate as a result the trade occurred, both buyer and sellers remain anonymous for each other due to a wide range of trading platform in all over India. The advantage of this mechanism is the entire process is order driven; it brings transparency, by displaying all orders of buyer and seller through the trading terminal. There is no any guarantee of execution of orders, the order will be executed only when buyer and seller price match. Trading can be done through brokers who are registered under SEBI rules and through online trading system provided by brokers.
Trading time for Indian stock exchanges:
Both exchanges (NSE and BSE) having same opening and closing time, i.e. open on 9:55 AM and closed 3:30 PM, Indian Standard Time (+ 5.5 hours GMT), All the trading activities take places in between this time only. The rolling settlement of any stocks in equity market on the basis of T+2 days means trading + 2 days. If you buy the shares of any company on Monday then the settlement will be on Wednesday.