S1 E4 : HOW NSE AND BSE WORK (INDIA SPECIFIC)
🤔 You Might’ve Seen These Names:
- "Listed on NSE and BSE"
- “Tata Motors NSE: ₹720”
- “Zomato BSE: ₹90”
You may have wondered:
“What are NSE and BSE?”
“Are they apps? Offices? Websites?”
“Where do they exist, and what do they actually do?”
Let’s make it super simple.
🏢 Imagine This:
Let’s say you want to buy 1 share of Tata Motors.
But you need a place to find someone selling it.
And that place should be safe, trusted, and official.
Just like Amazon connects buyers and sellers of products…
NSE and BSE connect buyers and sellers of shares.
These are India’s official stock exchanges — like giant online marketplaces for company shares.
🏦 What is a Stock Exchange?
A stock exchange is a place (physical + digital) where:
- Companies get listed
- People buy and sell their shares
- Prices are updated every second
- Everything happens under strict government rules
🇮🇳 India’s Two Main Stock Exchanges:
| 📊 Exchange | 📝 Full Form |
|---|---|
| NSE | National Stock Exchange |
| BSE | Bombay Stock Exchange |
📍 Quick Facts About NSE:
- Started in 1992
- India’s largest stock exchange
- Over 2,000 companies listed
- Known for the Nifty 50 index
- Fully electronic (online-based)
📍 Quick Facts About BSE:
- Started in 1875
- Oldest stock exchange in Asia
- Over 5,000 companies listed
- Known for the Sensex index
- Headquartered at Dalal Street, Mumbai
📱 Do You Need Both?
No — most shares are available on both NSE and BSE.
You can buy from either — your broker will show both prices.
Sometimes there’s a small price difference (like ₹720 on NSE, ₹719.50 on BSE).
That’s normal — both platforms work in real-time, with live orders.
It’s like Flipkart and Amazon showing slightly different prices for the same phone.
💼 Why Companies List on NSE/BSE
A company gets “listed” on a stock exchange after its IPO.
Once listed:
- People can freely buy/sell its shares
- Prices become public
- It gains trust and visibility
- SEBI (India’s stock regulator) monitors everything for safety
🧠 Recap in 6 Simple Points
✅ NSE and BSE are India’s two official stock exchanges
✅ They connect buyers and sellers of shares
✅ NSE is newer, faster, more tech-focused
✅ BSE is older, historical, but still active
✅ You can buy shares on either through your broker app
✅ Prices update in real time, just like shopping websites
✨ Final Thought:
The stock exchange is not a place for shouting traders anymore.
Today, NSE and BSE are 100% digital — working silently in the background so you can buy shares in seconds from your phone.