WHY NSE IS MORE POPULAR compare to BSE?

#1

5000 plus companies listed at bse wherein around 1500 companies listed at nse . in 100% cases the designated stock exchange for settlement is bse as for big volume business charges are less compared to nse.
never seen a buyback or d listing offer only at NSE( when scrip is listed at both exchanges ) BUT IN 90% CASES IT IS AT bse ONLY.
also claim to be the fastest stock exchange in the world .
THAN WHY NSE IS HUGELY POPULAR with very high volumes in almost every scrip compare to bse?
Is it because after start of NSE in 1994 many have taken NSE membership and are still only nse member broker wherein not sure if any body has taken only BSE membership after 1994 ?

#2

Nse has more liquidity and offers Futures and options for stocks which increases liquidity

#3

I think because of FnO but don’t know why bse was unable to catch on it , and now it may be too late for bse to compete nse on this and that’s the reason why nifty index is of more importance and popular then Sensex for traders .
Also I heard somewhere that nse was first to offer screen based trading system and before it there were various irregularities in the market.

#4

The difference between NSE and BSE are:

•NSE have more liquidity in intraday then BSE,
Because of the technology which they develop, they introduce bo (bracket order)
It is a 3 leg order which has trigger price, stoploss, and target in one order, and
co (cover order) compulsory stop loss
Which stop the losses by putting a compulsory stop loss order, so it will be helpful for traders,
BSE lack this technology

•NSE have Margin trading facility
Which gives leverage up to 12Ă— for trading in intraday for stocks

•NSE have Currency futures/options contract which get traded everyday

•NSE have Stock and Index futures/options contract which get traded everyday.

The National stock exchange is popular then the Bombay stock exchange for those facilities.

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#5

NSE started with electronic trading system in 1994, BSE went electronic in 1995. These were also the times Harshad Mehta, Ketan Parekh, scams happened. BSE kind of lost the plot around this time, run by brokers, while NSE was run professionally. NSE took the lead while BSE was going through trouble. NSE launched derivatives in 2000-01, BSE didn’t. As derivatives grew, NSE grew bigger. Liquidity seeks more liquidity in the exchange business as impact cost is lesser. So as it grew bigger, it became the first destination for most to place orders.

It is only last few years or so that BSE got a professional management and started working on their tech, speed,products, etc. But yeah, it will be tough for them to move liquidity away from NSE. But they have done a great job with their mutual fund platform, which today is almost 1/3rd of the MF market.

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#6

so if i had to invest in a stock which is listed on both exchange ,should i go to nse or it did not make any difference at all?

#7

when the scrip is listed at both the exchanges in 90% cases the Buyback is only through a BSE member broker or bse/nse both but NEVER with only NSE member.
same way in 100% cases the designated stock exchange for funds settlement is only BSE .

#8

If you are buying large quantities then NSE. Otherwise, it doesn’t matter. Sometimes the price might be different, so you can buy where lesser and sell where higher.

There is interoperability in clearing and settlement starting soon. Once that happens, the price between NSE and BSE on all stocks will be the same. Then it won’t matter.

#9

A very neat comparison…

-Neha (vrdnation.com)

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#10

@Prakhar_Agrawal : MINDTREE -LARSEN open offer which ended today received 6 crore 35 lakh 32098 shares out of which only 18 ,79040 are at nse which is less than 3%.
as usual the settlement exchange is BSE only.

#11

I also think that liquidity is one of the most important differencing topics between two exchanges. Also, there are additional services offered by NSE which are still not available at BSE. All these are very important factors for every investor