The stock market is full of terms we frequently hear but do not fully comprehend. For example, the stock exchange, like the Sensex and Nifty, bull or bear market, stock market crash, and so on, is a commonly heard term that has become financial jargon for many.
So, how many stock exchanges are there in India?
BSE (Bombay Stock Exchange) is not only India’s but also Asia’s first stock exchange, having been founded in 1875 under the name ‘The Native Share & Stock Brokers Association. It was established by cotton merchant Premchand Roychand, also known as the “cotton king” and “bullion king.”
With a speed of 6 microseconds, the BSE is considered the world’s fastest stock exchange. In February 2017, the BSE became India’s first listed stock exchange. BSE’s market capitalization was 276.713 lakh crore (US$3.7 trillion) as of January 2022, with 5439 listings on the exchange.
The National Stock Exchange (NSE) was founded in 1992. In April 1993, India’s market regulator SEBI recognised it as a stock exchange. The NSE began operations in 1994 with the launch of the wholesale debt market, followed by the launch of the cash market segment.
The NSE was established as the country’s first dematerialized electronic exchange and is regarded as the first exchange to provide a modern, fully automated screen-based electronic trading system that provided easy trading facilities to investors across the country.
- Calcutta Stock Exchange Ltd.
Many people must know that stockbroking was practised in Calcutta as early as 1836. However, members of the broking profession did not have a code of conduct to guide them or a permanent place for the congregation.
In addition, the CSE is Asia’s oldest government-owned stock exchange. It was founded on December 1, 1863, by sixteen of Calcutta’s leading stockbrokers and was later reconstituted in its current form in 1908. However, there has been no trading on the CSE platform since 2013 due to a 120-crore scandal involving the notorious stockbroker Ketan Parekh.
- National Commodity & Derivatives Exchange Ltd.
The National Commodity & Derivatives Exchange Limited (NCDEX) is India’s largest agricultural commodity exchange. According to its website, NCDEX has maintained its leadership position in the agricultural commodity derivatives market in ADTV since 2005.
This exchange has a diverse set of permitted commodities totalling 23, including pulses, spices, and guar, which are not traded on any other global platform and are also economically relevant to India, constituting an important component of India’s global trade.
- Multi Commodity Exchange of India Ltd.
The Multi Commodity Exchange of India Limited (MCX) is a commodity derivatives exchange that provides a platform for price discovery and risk management by facilitating online trading of commodity derivatives transactions. MCX began operations in November 2003 and is governed by the SEBI regulatory framework.
Commodity derivative contracts are traded on the stock exchange in various segments, including bullion, industrial metals, energy, and agricultural commodities. It is the first exchange in India to provide commodity options contracts, bullion index futures, and base metals index futures contracts.
- Metropolitan stock exchange of India ltd.
SEBI recognises it under Section 4 of the Securities Contracts (Regulation) Act of 1956. Furthermore, on December 21, 2012, the Ministry of Corporate Affairs, Government of India, notified it as a “recognised stock exchange” under Section 2(39) of the Companies Act, 1956.
MSE provides an electronic, transparent, and cutting-edge trading platform for the Capital Market, Futures & Options, Currency Derivatives, and Debt Market segments. SEBI has also given MSE in-principle approval to launch the SME trading platform.
- Indian Commodity Exchange Limited
ICEX (Indian Commodity Exchange Limited) is a Mumbai-based SEBI-regulated online commodity derivative exchange. Through appointed brokers, it provides a nationwide trading platform. ICEX has launched the world’s first diamond derivatives contracts and plans to offer futures trading products in all economically relevant commodities in India.
The primary goal of ICEX is to provide the trade with the desired price risk hedging solution through innovative contract design. As a result, ICEX is well-positioned to capitalise on the enormous potential of the commodities market while also encouraging actual users to participate to benefit from the opportunities for hedging, risk management, and supply chain management in commodities markets.