The National Stock Exchange of India was promoted by leading financial institutions at the behest of the Government of India, and was incorporated in November 1992 as a tax-paying company. In April 1993, it was recognized as a stock exchange under the Securities Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the NSE commenced operations in November 1994, while operations in the Derivatives segment commenced in June 2000.

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as BSE, it was established as The Native Share & Stock Brokers Association in 1875. It was the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporatised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE(Corporatisation and Demutualisation) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).Bombay Stock Exchange Limited received its Certificate of Incorporation on 8th August, 2005 and Certificate of Commencement of Business on 12th August, 2005. The Exchange has succeeded the business and operations of BSE on going concern basis and its recognition as an Exchange has been continued by SEBI.


While the BSE has over 874 members-brokers across the country, NSE has more than ,1000 members. In NSE, a prospective trading member is admitted to any of the following combinations of market segments: Wholesale Debt Market segment, Capital Market (CM) and the Futures and Options segments, CM Segment and the WDM segment, or CM Segment, the WDM and the F and O segment. There is no such thing at BSE and members join as any of the following : Trading Members, Trading cum Clearing Members, Professional clearing member, Limited trading member and Self Clearing member.

For NSE: In order to be admitted as a trading member, the individual trading member/at least two partners of the applicant firm/at least two directors of the applicant corporate must be graduates and must possess at least two years experience in securities markets. The applicant for trading membership/any of its partners/shareholders/directors must not have been declared defaulters on any stock exchange, must not be debarred by SEBI for being associated with capital market as intermediaries and must not be engaged in any fund-based activity. The trades executed on the Exchange may be cleared and settled by a clearing member. There is a special category of members, called professional clearing members (PCMs), who do not trade but only clear trades executed by others.

The initial joining fee for a member at BSE is Rs. 90 Lakhs while that for an NSE member is between 100 to 300 Lakh depending on the kind of membership one chooses.

In addition to annual fees, NSE members are required to pay transaction charges on trades undertaken by them. They pay transaction charge at the rate of Rs. 3.5 for every Rs. 1 lakh of turnover in the CM segment. The transaction charges payable to the exchange by the trading member for the trades executed by him on the F&O segment are fixed at the rate of Rs. 2 per lakh of turnover (0.002%) subject to a minimum of Rs. 1,00,000 per year. At BSE, these fees differ according to the various types of members.

For BSE, the requirements to becoming a member are:

  • Authorised By NSC As A Brokerage House
  • Authorisation Of BSE
  • Negotiation From NSC
  • Trained Staff At BSE(Brokers, Traders, Accountants)
  • Data On Member Registration
  • Company By-Laws
  • Membership Fee
  • Financial Statements
  • Company Mission Statements
  • Handbook On Internal Operations & Control
  • Personal Information File For Management And Specialized Staff
  • Contribution To The Guarantee Fund
  • Payment For The Licensed Access To Use The Operating System


Listing means formal admission of a security to the trading platform of the Exchange. In BSE, the securities may be of any public limited company, Central or State Government, quasi governmental and other financial institutions/corporations, municipalities, etc. The objectives of listing are mainly to :provide liquidity to securities; mobilize savings for economic development; protect interest of investors by ensuring full disclosures. The Exchange has a separate Listing Department to grant approval for listing of securities of companies in accordance with the provisions of the Securities Contracts (Regulation) Act, 1956, Securities Contracts (Regulation) Rules, 1957, Companies Act, 1956, Guidelines issued by SEBI and Rules, Bye-laws and Regulations of the Exchange. A company intending to have its securities listed on the Exchange has to comply with the listing requirements prescribed by the Exchange. Some of the requirements are:

  • Minimum Listing Requirements for new companies
  • Minimum Listing Requirements for companies listed on other stock exchanges
  • Minimum Requirements for companies delisted by this Exchange seeking relisting of this Exchange
  • Permission to use the name of the Exchange in an Issuer Companys prospectus
  • Submission of Letter of Application
  • Allotment of Securities
  • Trading Permission
  • Requirement of 1% Security
  • Payment of Listing Fees
  • Compliance with Listing Agreement
  • Cash Management Services (CMS) - Collection of Listing Fees

At NSE, the following criterias are to be fulfilled when one applies to be listed:

  • Approval of Memorandum and Articles of Association
  • Approval of draft prospectus
  • Submission of Application
  • Listing conditions and requirements

Once a company fulfils these criterias then they have to submit the following to the board:

  1. A brief note on the promoters and management.
  2. Company profile.
  3. Copies of the Annual Report for last 3 years.
  4. Copies of the Draft Offer Document.
  5. Memorandum & Articles of Association.

The listing fees depend on the companies paid up capital at both NSE and BSE. While the initial listing fee at NSE is Rs.7,500, it is Rs.20,000 at BSE. The annual listing fees for a company with a paid up capital upto Rs. 5 Crores is Rs. 10,000 at BSE while it is Rs. 8,400 at NSE. For a company with paid up capital between 5 to 10 crores, BSE charges Rs. 15,000 while NSE charges Rs. 10,000.


The main Index of BSE is SENSEX while that of NSE is CNX Nifty. The other indices at BSE are: BSE 500, BSE 100, BSE 200, BSE PSU, BSE MIDCAP, BSE SMLCAP, BSE BANKEX, BSE Teck, BSE Auto, BSE Pharma, BSE Fast Moving Consumer Goods (FMCG), BSE Consumer Durables (SYMBOL: Cons Dura), BSE Metal. 
NSE also set up as index services firm known as India Index Services & Products Limited (IISL) and has launched several stock indices, including: S&P CNX Nifty, CNX Nifty Junior, CNX 100 (= S&P CNX Nifty + CNX Nifty Junior), S&P CNX 500 (= CNX 100 + 400 major players across 72 industries), CNX Midcap (introduced on 18 July 2005 replacing CNX Midcap 200).


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