How come NSE become popular than BSE?

[dhanalakshmi]

BSE & NSE
BOMBAY STOCK EXCHANGE IS THE OLDEST FINANCIAL MARKET IN THE COUNTRY WHICH OFFERS HIGH SPEED TRADING TO CUSTOMERS.THE BENCHMARK INDEX IS SENSEX. GLOBAL RANK OF BSE IS 10th.

NATIONAL STOCK EXCHANGE IS THE YOUNGEST FINANCIAL MARKET.THEY INTRODUCED ADVANCED ELECTRONIC TRADING SYSTEM.THE BENCHMARK INDEX IS NIFTY. THE GLOBAL RANK IS 11th.

BOTH BSE AND NSE FOLLOWING SAME TRADING MECHANISM, TRADING HRS, SETTLEMENT PROCESS ETC.

[Neha Narayanan]

NSE introduced futures and options trading which attracted more traders to its market which was introduced in BSE much later.

[KAVITHA SUNDER]

NSE was setup in 1993, decades after BSE was founded. But it was set up as a professional corporate entity. There was a separation between management and owners. It was promoted by leading financial institutions and supervised by SEBI. NSE was founded to bring transparency in Indian securities market, which it did splendidly.

Before NSE, Indian stock market was dominated by BSE which was not a professional institution but an organization managed by brokers. The membership was limited to an exclusive group of brokers.

[Rajesh]

Earlier, every city had a stock exchange of itself. Over the years, these stock exchanges faded away from the market. The only one that still exists is the Bombay Stock Exchange. After 1990’s, National Stock Exchange NSE was formed. It is very transparent, very active for Intra day trading and less fraudulent than the BSE. So, NSE is more popular than BSE.

[Padmanabha]

NSE introduced the derivative market(Future and Options) in 2001 which made NSE to be popular, which got introduced in BSE only after few years.

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