List of Stock Exchanges in India

India's financial landscape is home to several prominent stock exchanges that play a crucial role in the country's economy. The major stock exchanges, including the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), facilitate the buying and selling of securities, providing a platform for investors to trade in equities, derivatives, and other financial instruments. 

Stock exchanges serve as organized platforms for the buying and selling of securities, facilitating price discovery and liquidity in the financial markets. They connect issuers of securities with investors, enabling capital formation and economic growth. For investors, stock exchanges provide access to a wide range of investment opportunities and a transparent environment for trading.

Government regulations ensure the integrity and stability of stock exchanges, protecting investors from fraud and market manipulation. The Securities and Exchange Board of India (SEBI) plays a crucial role in monitoring and enforcing these regulations, promoting fair practices and transparency in the Indian securities market.

Are you planning to initiate your trading journey? Would you like to know how many stock exchanges are there in India? Below is an overview of the 9 major stock exchanges in the country. 
 

Major Stock Exchanges in India

A stock exchange is a place where people buy and sell things like stocks, commodities, or currencies. Below are the total listed stock exchanges in India:

Now, let us go through each of the stock exchanges below in detail: 

1) Bombay Stock Exchange Ltd

The Bombay Stock Exchange (BSE), founded in 1875, is Asia’s first stock exchange in the world. Over the past 143 years, it has played a key role in helping Indian companies raise capital. Originally called ‘The Native Share & Stock Brokers' Association,’ it became the BSE and was listed on the stock market in 2017, making it the first Indian stock exchange to do so.  Today, BSE offers a transparent and efficient marketplace for trading stocks, currencies, bonds, derivatives, and mutual funds.

The two key indices of BSE Ltd include BSE Sensex and BSE 500. The BSE Sensex is a benchmark index that tracks the performance of the top 30 large-cap companies listed on the BSE, reflecting the overall market sentiment in India whereas the BSE 500 Index represents the performance of the top 500 companies listed on the Bombay Stock Exchange, offering a broad representation of the Indian stock market across various sectors. 

Apart from its two key indices, other important indices of BSE include:

2) National Stock Exchange of India Ltd

The National Stock Exchange (NSE) was founded in 1992 and was officially recognized by the Securities and Exchange Board of India (SEBI) in 1993 and started operations in 1994.

Initially, it focused on the wholesale debt market and soon after introduced the cash market segment. One of its key innovations was an electronic trading system that replaced the old paper-based system, making trading easier and more efficient. This helped NSE become a strong competitor to the BSE.

In 1995-96, the NSE launched the Nifty 50 Index, which lists the top 50 companies traded on the exchange. It also started trading and settling securities electronically, using dematerialized (paperless) forms.

Apart from the Nifty 50, NSE also has other important indices, such as Nifty Next 50, Nifty 500, Nifty Midcap 150, Nifty Smallcap 250, and Nifty MidSmallcap 400.

3) Calcutta Stock Exchange Ltd

The Calcutta Stock Exchange (CSE), established in 1908, is one of the oldest stock exchanges in India. Located in Kolkata, West Bengal, it played a pivotal role in the development of the Indian securities market.

CSE was formally recognized by the Government of India in 1956 under the Securities Contracts (Regulation) Act. Historically, it was the hub for trading in various Indian companies, though it has seen a decline in activity due to competition from other exchanges like the NSE and BSE. 

Its key indices include the CSE 30 and CSE Sectoral indices, which track the performance of prominent stocks and sectors listed on the exchange. Over time, CSE has adapted to electronic trading and today, it primarily facilitates trading in regional and small-cap stocks.

4) Metropolitan Stock Exchange of India Ltd

The Metropolitan Stock Exchange of India (MSE) is a recognized stock exchange, approved by the Securities and Exchange Board of India (SEBI) under the Securities Contracts (Regulation) Act, 1956. It was officially recognized as a "Stock Exchange" by the Ministry of Corporate Affairs on December 21, 2012.

MSE provides a modern and transparent platform for trading in various financial markets, including Capital Markets, Futures & Options, Currency Derivatives, and Debt Markets. 

MSE began operations in the Currency Derivatives segment on October 7, 2008, under the rules of SEBI and the Reserve Bank of India (RBI). It launched the Capital Market, Futures & Options, and its main index, the SX40, on February 9, 2013, with trading starting on February 11, 2013.

The SX40 is an index made up of 40 large, liquid stocks from different sectors of the economy. MSE also started its Debt Market segment on June 7, 2013, with trading beginning on June 10, 2013. In addition, MSE launched trading in cash-settled Interest Rate Futures (IRF) based on Government of India securities on January 20, 2014, providing a way to hedge against changing interest rates.

5) Multi Commodity Exchange of India Ltd

The Multi Commodity Exchange of India Limited (MCX) is a modern platform for online trading in commodity derivatives, helping people trade and manage risks related to commodities. It started in November 2003 and operates under the rules of the Securities and Exchange Board of India (SEBI).

MCX allows trading in a wide range of commodities, including precious metals (like gold and silver), industrial metals (like copper and aluminum), energy products (like crude oil and natural gas), and agricultural goods.

MCX's main index series, called MCX iCOMDEX, tracks the price changes of key commodities traded on the exchange. The series includes a general index as well as three sector-specific indices: the Base Metal index (MCX METLDEX), the Bullion index (MCX BULLDEX), and the Energy index (MCX ENRGDEX). Additionally, there are individual commodity indices for Gold, Silver, Aluminium, Copper, Lead, Zinc, Crude Oil, and Natural Gas.

6) National Commodity & Derivatives Exchange Ltd

The National Commodity & Derivatives Exchange Limited (NCDEX) is an online exchange that specializes in trading both agricultural and non-agricultural commodities. It was founded on April 23, 2003, and began its operations on December 15, 2003, under the Forward Contracts (Regulation) Act, 1952.

On September 28, 2015, NCDEX became a recognized stock exchange under the Securities Contracts (Regulation) Act, 1956, and is now regulated by the Securities and Exchange Board of India (SEBI).

The Exchange offers a wide range of products, including commodity futures, options in goods, and index futures. These products create various opportunities for different participants in the commodity derivatives market.

7) Indian Commodity Exchange Limited

Indian Commodity Exchange Limited (ICEX) is a leading commodity exchange in India, offering a platform for trading various commodity derivatives. It was established in 2009 and is regulated by the SEBI.

The exchange was created to enhance price discovery, risk management, and the overall liquidity in commodity markets.  ICEX was launched in 2009 under the name "Indian Commodity Exchange," to provide a nationwide platform for commodity futures trading. 

In 2017, it became the first exchange to launch diamond futures contracts in India. Its key indices include ICEX Gold Index, ICEX Silver Index, and ICEX Base Metals Index. These indices track the price movement of popular commodities and serve as benchmarks for the overall commodity market performance. 

8)  India International Exchange (India INX)

India International Exchange (India INX) is a leading international stock exchange located in GIFT City, Gandhinagar, Gujarat, India. Launched in January 2017, it is a fully owned subsidiary of the Bombay Stock Exchange (BSE) and serves as a platform for global investors to trade in Indian financial products. India INX offers to trade in equity derivatives, currency derivatives, commodity derivatives, and fixed-income products. The exchange operates 22 hours a day, catering to global markets across different time zones.

Key indices on India INX include the India INX Nifty 50 Index and the India INX Sensex Index. These indices track the performance of the top 50 and 30 companies listed on the BSE, respectively. 

9) NSE IFSC

 The National Stock Exchange International Financial Services Centre (NSE IFSC) launched in 2017, provides a platform for trading in a wide range of financial products, including equities, derivatives, and currencies, catering to international investors. Key indices include the NSE IFSC Nifty (representing the performance of the 50 largest companies) and Nifty Bank (tracking the banking sector). The exchange facilitates foreign investment by offering tax incentives and a favorable regulatory environment.
 

Functions and Role of Stock Exchanges in India

• Stock exchanges in India, like BSE and NSE, provide a platform for buying and selling securities, ensuring liquidity and price discovery.
• Ensure fair trading practices, transparency, and regulatory compliance through frameworks set by SEBI (Securities and Exchange Board of India).
• Stock exchanges allow companies to raise capital by issuing shares and bonds to the public through Initial Public Offerings (IPOs) and debt instruments.
• They provide individual and institutional investors with access to a wide range of investment opportunities.
• Stock exchanges maintain indexes (like Nifty and Sensex) to track market performance and serve as economic indicators.
• Exchanges promote investor education and protect market participants through rules and mechanisms that prevent fraud and market manipulation.

Benefits of Investing through Stock Exchanges in India

       Investing through stock exchanges in India offers several advantages, including:

• Liquidity and Market Access
• Regulated Environment
• Diversification Opportunities
• Capital Appreciation and Dividends
• Cost-Effective Investment 

How to Start Trading on Indian Stock Exchanges

To start trading on Indian stock exchanges, follow these simple steps:

1. Choose a Stock Broker
2. Open a Trading Account
3. Open a Demat Account
4. Link Your Bank Account
5. Learn Basic Stock Market Concepts
6. Fund Your Trading Account
7. Choose the Right Stocks
8. Place Your First Trade
9. Monitor and Review Your Portfolio
10. Stay Updated and Learn
11. File Taxes and Report Gains
12. Start small as the stock market can be volatile.
     

Role of SEBI in Regulating Exchanges

The Securities and Exchange Board of India (SEBI) plays a crucial role in regulating exchanges in India. Here are the 6 key points outlining its role:

• SEBI oversees and ensures that stock exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) operate in a fair, transparent, and efficient manner.
• SEBI sets guidelines and rules for how trading should be conducted, ensuring that all participants, including brokers and investors, follow a fair process.
• SEBI continuously monitors trading activities to prevent malpractices like insider trading, market manipulation, or fraud. It ensures that no one can take unfair advantage in the market.
• SEBI works to protect investors by enforcing regulations that promote transparency and accountability.
• SEBI ensures that securities are priced fairly and that no one can manipulate stock prices. This is important for creating a level playing field for all market participants.

If an exchange or a trader violates rules or engages in illegal activities, SEBI has the authority to take actions such as imposing fines, suspending licenses, or even shutting down operations.
 

Common Mistakes to Avoid When Trading on Indian Stock Exchanges

Here are some 8 common mistakes to avoid when trading on Indian stock exchanges:

• Jumping into trades without understanding the company or the stock.
• Making decisions based on emotions like fear, greed, or excitement.
• Putting all your money in one stock or sector.
• Trading too frequently, hoping to make quick profits.
• Not setting stop-loss orders or managing risk properly.
• Buying or selling stocks just because others are doing it.
• Ignoring brokerage fees, taxes, and other costs involved in trading.
• Trying to predict short-term market movements or "timing" the perfect buy/sell.