The economic and capital market in a country cannot exist without a stock exchange. The Indian capital market is guided by the two pillars viz. Bombay Stock Exchange and the National Stock Exchange. All the major transactions take place here though there are about 20 other stock exchanges in different cities of India. Both these stock exchanges are situated in Bombay [presently Mumbai]. The Bombay stock exchange [BSE] is located at the Dalal Street and was established in the year 1875. The national stock exchange [NSE] is located at Bandra (east) and was founded in the year 1992.
The indices NIFTY for NSE and SENSEX for BSE are displayed in all major portals, newspapers and financial magazines.
BSE has BSE small cap, BSE Mid cap and BSE500 as indices to take care of the medium and small companies while India index services & Products Limited [IISL] was launched to have indices like S&P CNX Nifty, CNX Nifty Junior, CNX 100, S&P CNX 500 and CNX Mid cap.
BSE and NSE have changed the meaning of trading in the share market in India giving the investors the confidence and endeavour to invest and make big money. BSE replaced the open cry system with automated trading BSE online trading [BOLT] system was established in the year 1995 and expanded to the other exchanges in 1997 by NSE there by giving the investors wider and easier trading options. Both the BSE and NSE have embraced the latest and sophisticated technology for smoother and better trading operations which has re affirmed the investor’s faith in the Indian stock market. There came a period when people were losing faith in the stock market because of the heavy rush, physical presence requirement, filling forms and the other paper work, lack of proper and timely news. But the computerisation and online trading has again changed the views of the people as trading became easier, simpler and faster.
Many time-consuming tasks have become simplified. The technological revolution that has been taking place has not only made trading easy in India but has changed the world markets too. One just requires an online trading account to operate in BSE or NSE and then they can do their trading business within the trading hours from anywhere in the world. All they would need is a computer with a broadband connection. Earlier transactions used to take a long time but now everything is done in a few minutes. There are no forms to be filled, registers to be maintained as they are all done electronically. One can view the stock market live once they are online.
The national stock exchange has been in the forefront of online stock trading in the country. Soon the online trading spread to the other exchanges in the country. The development in information technology has attracted the investors to trade in any of the BSE and NSE stock. This development in technology has seen the NSE facilitate easy and convenient trading among the investors. Satellite communication technology has been used to connect with the major cities and towns all over India. The necessary software and hardware is being upgraded regularly to keep up with the trends and development. As of this day the NSE can handle more than 15 million trades every day in the stock market.
The NSE has made a name for itself in the global market too. This included signing of a memorandum of understanding with the Singapore stock exchange for development of a market for Indian products to be listed in the Singapore exchange. Many license agreements have been made between Indian companies and benchmark indexes of US. Many foreign investors have been attracted by both BSE and NSE. There are many firsts to its credit by the Bombay stock exchange. It introduced free floating index, equity derivatives, launched its website Hindi and Gujarat. It obtained the 1st iso certification for having an exchange and starting exchange enabled internet trading platform The NSE too not to be left behind, has strongly made its name in the world market.
One good encouraging news is that investment in mutual funds of India has increased other than the direct investment in stocks. NSE-BSE market performance has not been up to the standard though it is on way to recovery soon.