Written by Upstox Desk
5 min read | Updated on September 26, 2025, 14:22 IST
NSE introduction
BSE introduction
How does NSE & BSE work?
Trading on NSE and BSE
Upstox is a leading Indian financial services company that offers online trading and investment services in stocks, commodities, currencies, mutual funds, and more. Founded in 2009 and headquartered in Mumbai, Upstox is backed by prominent investors including Ratan Tata, Tiger Global, and Kalaari Capital. It operates under RKSV Securities and is registered with SEBI, NSE, BSE, and other regulatory bodies, ensuring secure and compliant trading experiences.
If you’re looking to become an investor, you may be aware of stock markets, and stock exchanges, however, you may want to know what is NSE and BSE? to understand that let first understand a Stock, a stock or a share, can be considered as one part of the total parts of a company - so if you own some stocks of a company, you’re a part owner. A share, therefore, has some value, and so a company raises money by issuing shares to the public. We’ve discussed this concept in detail in our post on IPOs.
Key Points
Now, where does this issuance of shares occur? On a platform, we call the stock exchange. A stock exchange is an organized market, where traders can buy and sell the shares of different companies.
India has two main stock exchanges - the National Stock Exchange (NSE) and the older Bombay Stock Exchange (BSE). Let’s learn more about them.
The NSE or National Stock Exchange is the leading stock exchange of India. It is the fourth largest in the world (based on equity trading volume). Based in Mumbai and established in 1992, it was the first stock exchange in India to offer a screen-based system for trading.
The NSE was initially set up with an aim to usher in transparency to the Indian market system, and it has ended up delivering on its aim quite well. With the help of the government, the NSE successfully offers services such as trading, clearing as well as the settlement in debt and equities comprising domestic and international investors.
The BSE or the Bombay Stock Exchange is a lot older than its cousin. It was Asia’s first stock exchange. With a trading speed of 6 microseconds, the BSE is the fastest stock exchange in the world.
The BSE does have some interesting history. A man named Premchand Roychand founded the Native Share and Stock Brokers Association in the 19th century. In those times, it used to function in Dalal Street under a banyan tree - where traders would gather together to buy and sell stocks. Gradually, the network expanded and the exchange was established by the name of Bombay Stock Exchange in 1875.
The trading mechanism of both the NSE as well as BSE is similar. Investors and traders connect to the exchanges via their brokers, and place buys or sells orders on these exchanges. What makes them decide on their trading strategy? You might have often heard the terms ‘Nifty’ and ‘Sensex.’ Both of them are indices - the former representing NSE and the latter BSE. These indexes play an integral part in the working of these exchanges.
That’s all well and good, but what is the actual role of these stock exchanges? What do they do?
now that you know what is NSE and BSE, you should be looking forward to start trading on NSE and BSE, follow these steps:
Wrapping Up
About Author
Upstox Desk
Upstox Desk
Team of expert writers dedicated to providing insightful and comprehensive coverage on stock markets, economic trends, commodities, business developments, and personal finance. With a passion for delivering valuable information, the team strives to keep readers informed about the latest trends and developments in the financial world.
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