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The Daily Insight Hub

How does the Indian stock exchange work?

Author

Sophia Koch

Updated on December 28, 2025

Trading in the Stock Market Your broker passes on your buy order for shares to the stock exchange. The stock exchange searches for a sell order for the same share. Once a seller and a buyer are found and fixed, a price is agreed to finalize the transaction.

What are the features of Bombay Stock Exchange?

Features of BSE and NSE

  • The securities listed on BSE are stocks, stock options, stock futures, index options, weekly options, and index futures.
  • It is India’s oldest stock exchange.
  • SENSEX 30 is the benchmark index of BSE, and it includes companies from 12 different sectors.

    How can I trade in Mumbai stock market?

    The mechanism of trading BSE

    1. Investors (including traders) connect to BSE through a set of authorized brokers.
    2. The first pre-requisite for trading on this stock exchange is having a BSE Trading Account and demat account.
    3. BSE Trading can be of two types – intraday or day trading and delivery trading.

    How does the National Stock Exchange work?

    NSE operates on the ‘National Exchange for Automated Trading’ (NEAT+) system, a fully automated screen based trading system, which adopts the principle of an order driven market. NSE consciously opted in favour of an order driven system as opposed to a quote driven system.

    What are the advantages of Bombay Stock Exchange?

    Benefits of Listing

    • Easy access to Capital. BSE SME provides an avenue to raise capital through equity infusion for growth oriented SME’s.
    • Enhanced Visibility and Prestige.
    • Encourages Growth of SMEs.
    • Enables Liquidity for Shareholders.
    • Equity financing through Venture Capital.
    • Efficient Risk Distribution.
    • Employee Incentives.

      Is National Stock Exchange listed?

      MUMBAI: After a year of frenetic lobbying by a clutch of foreign and local investors, the board of the National Stock Exchange (NSE), India’s largest bourse, has finally approved the listing of its shares.

      Who is the CEO of Share Market?

      Vikram Limaye
      National Stock Exchange of India

      National Stock Exchange of India’s Logo
      Founded1992
      OwnerMinistry of Finance , Government of India
      Key peopleGirish Chandra Chaturvedi (Chairman) Vikram Limaye (MD & CEO)
      CurrencyIndian rupee (₹)