Stock Market · Introduction to Stock Markets

NSE, BSE, SEBI

Three names control the entire Indian stock market. Knowing what each does makes everything else easier.

NSE (National Stock Exchange), established 1992, Mumbai. The newer, bigger exchange. Handles ~90% of equity trading volume in India. Its benchmark index is the Nifty 50, the 50 largest companies by market cap.

BSE (Bombay Stock Exchange), established 1875, the oldest exchange in Asia. Its benchmark is the Sensex, 30 of the largest, most actively traded companies. Smaller daily volume than NSE but the Sensex remains the headline market gauge most news quotes.

Both exchanges list mostly the same stocks. Same Reliance share trades on both. Which one your trade goes to depends on which one your broker routes to (usually whichever has the better price at that microsecond).

SEBI (Securities and Exchange Board of India), the regulator. Established 1992. Think of it like the cop standing over both exchanges making sure nobody cheats. SEBI sets the rules: who can list, what brokers can charge, how mutual funds must operate, what counts as insider trading.

If you ever feel something fishy is going on, SEBI is who you complain to. They have actual enforcement powers. Can fine, ban from markets, refer for prosecution.

Bottom line: NSE and BSE are the venues. SEBI is the referee. Together they make Indian markets functional enough for retail investors to actually trust them.

Takeaway. NSE and BSE are where trades happen. SEBI makes sure they happen fairly.