A stock exchange is a focal place for investors and traders to buy and sell different financial securities such as stocks, Exchange-traded Funds (ETFs), and derivatives like options and futures. It brings buyers and sellers together under one roof to trade and profit from market inefficiencies (different between buying and selling prices). With advancements in this space, investors can trade across the country as well as globally with ease.
In this article, we will talk about Indian stock exchanges, their history, different stock exchanges in India and more.
What is a stock exchange and how did it begin in India?
In technical terms, a stock exchange is a platform permitted and authorized by the government that lets a company list itself and provides a marketplace for investors/traders to transact a company’s shares. In India, the Securities and Exchange Board of India (SEBI) regulates this space. In terms of market maturity, India is considered an emerging market because.
Established on August 31, 1957, the Bombay Stock Exchange (BSE) is India’s first official stock exchange. However, the history of the stock market in India is more vivid than this and dates back to the 19th century. The Native Share and Stock Broker’s Association was a known institution around 1875 for trading. It later became known as the predecessor of the Bombay Stock Exchange.
The Ahmedabad Stock Exchange began in 1894. However, it had the purpose to trade shares of textile mills; Ahmedabad was quite popular back then for its textile business. Followed by that, in different parts of the nation, new stock exchanges started to form, leading to where we are at present.
The stock market in India has its fair share of ups and downs, and as a result, in 1992, the regulatory body SEBI was established to ensure fair conduct and protect investors.
SEBI was set up after the Harshad Mehta scam of 1992 shook investor confidence in the market. Its job is to make sure companies disclose their financials honestly, brokers handle your money properly, and no one manipulates prices. For investors, this means the numbers a company publishes — revenue, profit, debt — are regulated and auditable. Learning to read those numbers is one of the most useful skills you can build as an investor. Ratio Analysis: The Right Way to Evaluate Business Financials
How many stock exchanges are there in India at present?
1. BSE (Bombay Stock Exchange Limited)
Established in the year 1875, BSE is India’s first official stock exchange platform. It is situated on the famous Dalal Street in Mumbai. 5500+ companies are listed on BSE, making it the 10th largest stock exchange globally.
2. NSE (National Stock Exchange of India)
Inaugurated in 1992 and started functioning in 1994, NSE is a competitor of BSE. NSE is also India’s first electronic exchange. Because of that, investors across the country could buy and sell shares with more accessibility to the stock market. Since its inception, NSE has improved a lot on its tech part and innovations to provide better services to investors.
BSE vs NSE: Which Exchange Should You Trade On?
For most retail investors, both BSE and NSE are accessible through the same broker app — you won’t log into them separately. The real question is which broker platform you choose. Upstox, for example, gives you access to both NSE and BSE from a single demat account, with trades starting at just ₹20 per order. If you haven’t opened one yet, this is a good time to do it — Open a Free Upstox Demat Account
3. CSE (Calcutta Stock Exchange Limited)
CSE began in 1830 when a bunch of brokers gathered under a neem tree to seal their deals. This practice continued and in 1908, it officially became Calcutta Stock Exchange. Electronic trading was introduced at CSE in 1997; it is the second oldest stock exchange in the South Asia region. CSE is no longer in use, but the case against terminating is still pending in court which makes it an active exchange in India.
4. INDIA INX (India International Exchange)
For international trading, INDIA INX leads the pack. Established on January 9, 2017, It is based in GIFT City, Gujarat at the International Financial Services Centre (IFSC). Investors can directly purchase and sell individual stocks on this exchange of nations such as the US, Canada, Australia, and Japan. INDIA INX has the Eurex T7 platform which is considered the most advanced tech in the world.
5. National Stock Exchange IFSC Limited
Quite similar to INDIA INX in location and functioning, this exchange is a subsidiary of NSE. It was launched to help the nation attract better investment opportunities and expand its market size.
6. MCX (Multi Commodity Exchange of India)
MCX, established in 2003, was initially formed under the Forward Market Commission and later merged with the SEBI. It is India’s first commodity exchange and is situated in Mumbai. It has also been ranked 7th in the largest commodity exchanges in the world. From gold to crude oil to wheat, a majority of commodities can be traded in MCX.
7. NCDEX (National Commodity and Derivatives Exchange)
Established on April 23, 2003, NCDEX is an online commodity exchange having headquarters in Mumbai. NCDEX’s ownership is majorly divided between institutions, companies and large public banks. It is open 5 days a week between 10 am to 11:30 pm.
8. MSE (Metropolitan Stock Exchange of India Limited)
MSE began its operations in 2009. Currently, there are 1500+ companies listed on this exchange. Just like BSE and NSE, investors can buy or sell individual stocks on MSE. It offers trading in various segments including debt, equity, derivatives, and more.
9. ICEX (Indian Commodity Exchange Limited)
ICEX is a commodity derivative exchange which is regulated by SEBI. It was established in August 2017 and is located in Mumbai. It allows trading to registered brokers for trading contracts across the nations. It is a permanently recognized exchange in India and is completely unique as it allows the trade of diamond derivatives as well.
How do companies get into a stock exchange?
There are two ways for a company to get itself on a stock exchange.
- i) IPO (Initial Public Offering): When a company decides to get listed on a stock exchange (go public), it offers IPO in the primary market. Investors apply for IPO and those that get allotments, receive the shares of that company.
- ii) Trading on the secondary market: All the shares are traded on the secondary market. Once the shares are offered under an IPO, it gets traded on exchanges like BSE, NSE, etc.
Once a company lists through an IPO and starts trading on the secondary market, anyone with a demat account can buy its shares. The IPO gets you in at the offer price — but most everyday investing happens on the secondary market, where prices move based on supply, demand, and company performance. Understanding how to evaluate a company before buying is what separates investing from guessing. A good starting point is learning how to read Earnings Per Share (EPS) one of the simplest signals of a company’s profitability.
Final Thoughts
Stock exchanges are just the marketplace. What you buy there — and how you decide — is entirely up to you. The investors who do well long-term aren’t the ones who trade the most; they’re the ones who understand what they own.
If you’re just getting started, the most practical next step is opening a demat account so you can actually participate. Open a Free Upstox Demat Account — the process is fully online and takes about 10 minutes. From there, start small, stay curious, and keep learning.
