NSE and BSE full forms
| NSE | BSE | |
|---|---|---|
Full form | National Stock Exchange of India Limited | Bombay Stock Exchange, now officially BSE Ltd |
Founded | 1992 (trading from 1994) | 1875, Asia's oldest stock exchange |
Location | Exchange Plaza, Bandra Kurla Complex, Mumbai | Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai |
Main index | Nifty 50 (50 companies) | Sensex (30 companies) |
Known for | Highest trading volumes; most equity derivatives | Largest number of listed companies |
Regulator | SEBI |
Nifty vs Sensex
Both indices track India's largest companies and usually move together:
- Sensex (from 1986) follows 30 large, established companies listed on BSE.
- Nifty 50 (from 1996) follows 50 companies listed on NSE, so it covers more sectors.
When the news says "the market rose 1%", it usually means one or both of these.
Does it matter which exchange you buy on?
For most investors, not much. Large companies are listed on both, and their prices on NSE and BSE are almost always within a few paise of each other. Practical differences:
- NSE usually has more buyers and sellers (liquidity) for large stocks, so orders fill more easily.
- BSE lists many smaller companies that aren't on NSE.
- Your broker routes the order, and shares bought on either exchange land in the same demat account.
Trading hours (9:15 a.m. to 3:30 p.m.) and T+1 settlement are the same on both.
Key terms you'll see on both exchanges
- Demat account: holds your shares electronically, with a depository (NSDL or CDSL) through your broker.
- Trading account: the account your broker uses to place buy and sell orders on NSE or BSE.
- Market order / limit order: buy at the current price, or only at the price you set.
- Circuit limit: the maximum a stock can rise or fall in a day before trading in it pauses.
- Market capitalisation: share price × number of shares. It is the basis of "large-cap", "mid-cap" and "small-cap".
- IPO: a company's first sale of shares to the public, listed on NSE, BSE or both.
Getting started and staying tax-compliant
You need a demat account and a trading account with a SEBI-registered broker, linked to your PAN, Aadhaar and bank account. Your PAN must be linked with Aadhaar, or brokers will treat it as inoperative.
Profits are taxed as capital gains, or as business income for frequent trading and F&O. Download your broker's tax P&L before filing. TaxQue's ITR-2 filing service handles capital gains returns.
