What & Where
Bombay Stock Exchange (BSE) – Asia’s oldest stock exchange, Dalal Street (Mumbai).
National Stock Exchange (NSE) – first nationwide, fully electronic bourse, Mumbai HQ.
Benchmark indices: Sensex (30 BSE large-caps) & Nifty 50 (50 NSE large-caps).
Quick Facts for MCQs
Historical Evolution
- 1870s banyan-tree trading evolved into formal BSE by 1875.
- NSE launched 1994 order-driven screen system, breaking floor cartel.
- 1995 BSE adopted electronic BOLT, ending open-cry.
Trading Technology
- BOLT enables nationwide, T+2 settlement, retail reach.
- NEAT offers millisecond order matching, high throughput.
- Screen platforms raised transparency, cut transaction costs.
Market Characteristics
- NSE commands highest equity & derivatives volumes in India.
- BSE volumes lower; liquidity uneven across listed shares.
- Ongoing index peaks powered by concentrated large-cap participation.
Key Data Points
| Feature | Data-Point |
|---|---|
| BSE origin year | 1875 (Native Share & Stock Brokers Association) |
| NSE incorporation | 1992; SEBI recognition 1993 |
| Trading platforms | BOLT (BSE) vs NEAT (NSE) |
| Flagship indices | Sensex (BSE) vs Nifty 50 (NSE) |
| Index constituents | 30 stocks vs 50 stocks |
| Liquidity profile | BSE moderate; NSE high |
| Derivatives share | NSE largest F&O market; BSE small segment |
| Current rally driver | Few large-cap banks + Reliance |
Related UPSC Prelims PYQs
Among the following major stock exchanges of India, which one recorded the highest turnover during the year 2001-02?
Consider the following statements :







