Last Updated: Sep 14, 2022 Value Broking 6 Mins 2.0K

BSE means Bombay Stock Exchange. This article has so many answers the beginners have in their minds like What is BSE? Or What is BSE in the share market? The motive of the article is to define BSE and its aspects of it.

What is BSE in the Share Market?

BSE is the cannon of the share market world. The name itself says that the association is in Bombay (now MUMBAI), India. The oldest stock exchange of Asia is the third-largest stock exchange in the world if it comes to market capitalization. A stock exchange is an exchange for the trading of shares in companies.  BSE operates all the stock exchanges in India. It is owned by the RBI (Reserve Bank of India). The BSE was founded as the Native Share and Stock Brokers’ Association in 1875. It plays a big role in the development of India’s capital markets, particularly the retail debt market, as well as the corporate sector. The trading floor of BSE is a bustling place where thousands of people are working. To define BSE more clearly one would say that the joint-stock company is regulated by the Central Government and operates under the aegis of the Securities and Exchange Board of India (SEBI). The BSE trades in securities including bonds, equities, and futures.

An Overview

The BSE is not just the oldest but also the first stock exchange in Asia, with an equities trading platform for small and medium-sized businesses (SMEs). Today, It has broken many barriers and has spread its expansion in services that include risk management, clearing, and settlement. The BSE is famous for its electronic trading system, which allows dealers to swiftly and effectively execute trades. It has over 250 companies listed and a steady growth rate. It works with a speed of 6 microseconds, the world’s fastest stock exchange. A corporatized and demutualized company with a diverse stakeholder base, including Deutsche Bourse, the world’s premier global exchange. For trading in equity debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds, and stock lending and borrowing, the BSE provides a transparent and efficient market.

A Small Look Back

The BSE’s transition from the open floor in 1995 to an electronic trading system and online trading in 2001. In the present day, the trading systems are dominating the financial industry as a whole. It provides faster execution. Fewer errors, and great efficiency in comparison with the traditional trading systems. The list of securities listed under BSE are:

  • Weekly options
  • Stocks
  • Index options
  • Future and options stocks
  • Index futures and many more.

Everyone knows BSE is Asia’s oldest stock exchange and still is not the largest stock exchange in India. The largest stock exchange in India is NSE (National Stock Exchange).


The NSE is one of the most important instruments to invest in the country. This company is on the biggest stock market in India. It has over 1,600+ listed companies. A commercial, member-based stock exchange has more than 15,000 listed shares. In addition, it has some exchange-traded funds with its name like Nifty. The main objective of NSE is to provide an environment that is conducive to a free and fair exchange of market information and trading among the various participants in the market. NSE works on NEAT (National Exchange for Automated Trading) trading system is a fully-automated system. It consists of a screen trading system and a trading model. The trading model automatically determines the risk and return according to the information provided by the system, and the screen trading system is responsible for creating, entering, and canceling transactions into NSE’s matching engine. The trading model provides the trading logic, and the screen trading system provides the screen and trades data. More than 200 members of the National Stock Exchange have an award of “Best Trader”.

How BSE is different from NSE?

In the first decade of the 20th century, the BSE was the only commercial exchange in India. After that, it gradually lost its monopoly and was overtaken by the NSE. Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) are the two main stock exchanges in India. These two are among Asia’s largest stock exchanges and are the largest in Asia. The name itself states the difference between both associations. Key differences between the Bombay Stock Exchange and the National Stock Exchange are:

  • The establishment year of BSE is 1875, whereas NSE came into existence in 1992.
  • The benchmark index of BSE is SENSEX and NIFTY of NSE.
  • The BSE promotes trading in mutual funds, debt instruments, and currencies. National Stock Exchange promotes trading in currency derivatives, equity, and debts.
  • BSE ranks 10th globally and NSE ranks 11th in the financial world.
  • BSE has lower liquidity than NSE.
  • The market capitalization of BSE is approx 266 trillion rupees. NSE has a market capitalization of around 199 trillion rupees.

How Can You Make a Career In BSE

The BSE is a very good option for you to have a successful career. You can make good money and get high salaries. The USP of the association is that it has a very vibrant and compatible work environment. So, if anyone is looking to make a career in the world of finance they can try BSE. How to make a career at BSE? The Bombay Stock Exchange has its institute which works with the goal of providing industry-focused financial courses with a well-designed academic curriculum. The motive of the institution is to provide academic facilities to the students who are willing to make their careers in the stock market and develop the Indian Stock market as a whole. So, one can apply for the courses available at BSE according to their requirements and goals.


By enabling the purchases and sales of stocks and securities, the stock exchange’s efficient marketability and liquidity enable a prompt and continuous supply of capital to the business. This forum also assists businesses in obtaining extra capital financing without the need for collateral. The BSE never left the chance to top the table of milestones in its life of 147 years. The BSE also boasts over 2000 awards and achievements, including:

  • The introduction of Equity Derivatives to the Indian Audience
  • Launching Free Float Index,
  • The launch of the US dollar version of BSE Sensex.
  • Enabling the internet trading system,
  • Providing exclusive financial training.
  • The first stock exchange to earn ISO certification.
  • Winning global awards for Online Trading System.

Frequently Asked Questions (FAQs)

In July 1992, the BSE introduced the BSE Sensex Index. It was created to provide investors with a simple and economical way to invest in the stock market.

The BSE serves as a capital-raising platform for both small and large businesses. It also allows businesses to raise capital through shares and convertible debentures.

BSE courses include programs in marketing, banking, finance, and other related professions that are available as professional degrees, diplomas, or certificate programs. Individuals can use the BSE courses to pursue a career in the stock market or finance in roles such as Financial Analysts.