The stock exchange is the backbone of a country’s financial ecosystem. It offers an open and transparent platform for trading in securities such as shares, bonds, and derivatives. In India, the stock exchange market connects companies that require capital and investors interested in investing in growth opportunities, driving economic growth and confidence in investment.
At Skytrade, traders and students can explore real-time market trends, learn about the nature of Indian exchanges, and learn hands-on about trading in various asset classes.
What Is a Stock Exchange?
A stock exchange is a controlled platform where securities are exchanged between institutions and investors. It provides fair pricing, liquidity, and transparency in each transaction. The stock exchange market offers companies the chance to raise funds and allows investors to share in business growth.
India’s stock market structure consists of both commodity and equity exchanges. While the equity segment is dominated by BSE and NSE, MCX and NCDEX dominate the commodity segment. Exchanges such as India INX and MSEI serve global and niche trading requirements.
Major Active Stock Exchanges of India
1. Bombay Stock Exchange (BSE)
- Established in 1875, BSE is Asia’s oldest and famous stock exchange globally.
- With its headquarters at Dalal Street, Mumbai, it has 5,600+ listed companies.
- The Sensex, the benchmark of BSE, follows 30 of India’s biggest and most consistent companies.
- Renowned for its high technology and speedy trade execution platforms.
- The aggregate market capitalization on BSE crossed $4 trillion, which indicates its international significance.
BSE’s diversified list of indices and instruments provides traders with access to different sectors of the Indian economy, thus making it an essential element of the stock exchange market.
2. National Stock Exchange (NSE)
- Established in 1992 and starting operations in 1994, NSE transformed Indian trading through electronic order matching.
- Its benchmark index, Nifty 50, is one of the most followed indices globally.
- NSE has listed more than 2,600 companies in equity, derivatives, currency, and debt segments.
- It dominates the Indian stock exchange market in terms of daily turnover and liquidity.
- Recently, NSE joined the world’s top-10 exchanges by brand value.
With strong technological infrastructure and high transparency standards, NSE has become the preferred platform for both institutional and retail traders.
3. India International Exchange (India INX)
- Inaugurated in 2017, India INX is India’s first international stock exchange, located at GIFT City, Gujarat.
- Operates 22 hours a day to align with global time zones.
- Uses ultra-fast trading technology with a response time of just 4 microseconds.
- Provides trading in equity, currency, commodity derivatives, and debt securities.
- Designed to find global investors and position India as a financial hub.
India INX introduces global exposure to Indian securities, providing the stock exchange market with a wider reach beyond national horizons.
4. Metropolitan Stock Exchange of India (MSEI)
- Approved in 2012, MSEI deals in capital markets, currency derivatives, and debt segments.
- Its benchmark index SX40 covers 40 diversified large-cap companies.
- Aims to facilitate open and inclusive participation in the market.
- Provides support to start-ups and SMEs through listing opportunities.
MSEI has a facilitative role to enhance India’s trading space and investor confidence.
5. Multi Commodity Exchange of India (MCX)
- Founded in 2003 and based in Mumbai.
- The MCX is India’s largest commodity derivatives stock exchange.
- It enables businesses in metals, energy, and agricultural commodities like gold, silver, crude oil, and cotton.
- Acts as an effective platform for investors and hedgers to deal with price risk.
- Reputed to have a strong electronic trading infrastructure.
MCX has been instrumental in introducing transparency and form into India’s commodity stock exchange market.
6. National Commodity & Derivatives Exchange (NCDEX)
- Specializes in agricultural commodity trade.
- Offers futures and options on products such as soybean, mustard, guar gum, and chana.
- Helps farmers, producers, and traders to deal with market volatility.
- Headquartered in Mumbai with national-level participation.
NCDEX adds strength to the agricultural economy by providing price stability and decision-making based on data in the stock exchange market.
Stock Exchanges Under Exit or Limited Operation
India had several regional stock exchanges earlier, but many have suspended operations owing to thin trading and technological consolidation.
The following are some of the prominent ones:
- Calcutta Stock Exchange (CSE): Trading is suspended awaiting a regulatory decision.
- Ahmedabad, Delhi, Madras, Bangalore, and Jaipur Stock Exchanges: These have officially exited.
- Inter-connected Stock Exchange (ICEL) and Indian Commodity Exchange (ICEX): Out of operation.
The consolidation has simplified India’s stock exchange market by concentrating liquidity and transparency on prime national platforms.
Comparative Overview of Major Exchanges
| Exchange | Founded | Location | Primary Focus | Popular Index | Key Highlights |
| BSE | 1875 | Mumbai | Equity, Derivatives | Sensex | Asia’s oldest exchange, with extensive listings |
| NSE | 1992 | Mumbai | Equity, Derivatives, Currency | Nifty 50 | Highest trading volume and liquidity |
| India INX | 2017 | GIFT City | International Securities | India INX SENSEX | 22-hour trading for global investors |
| MSEI | 2012 | Mumbai | Capital Markets, Currency | SX40 | Focus on SMEs and transparency |
| MCX | 2003 | Mumbai | Commodity Derivatives | MCX Commodity Index | Leading commodities trading platform |
| NCDEX | 2003 | Mumbai | Agricultural Derivatives | NCDEX Commodity Index | Agri-focused futures and options |
This comparison illustrates the distinct role each of these stock exchanges plays in India’s market, with varied instruments and opportunities for investors at all levels.
Why Knowing the List of Stock Exchanges Matters
- For investors and traders, knowing active exchanges is important as it assists in:
- Determining where liquidity and price discovery are most powerful.
- Select exchanges appropriate for equities, commodities, or international securities.
- Make risks manageable through diversified trading options.
- Stay away from confusion about inactive or exited exchanges.
- Skytrade enables users to do so by providing educational insights and real-time updates, matching their trading strategies with the most apt platforms.
Conclusion
India’s stock exchange market is a strong, tech-facilitated environment headed by BSE, NSE, MCX, NCDEX, MSEI, and India INX. Each has a unique role in facilitating investors, businesses, and traders to undertake secure, transparent, and diversified trading exercises.
With more participation and international interest, knowledge of these exchanges becomes a requirement for anyone wishing to trade safely.
With platforms such as Skytrade, investors can simply venture into this vibrant world, study trends in the market, compare how different exchanges perform, and invest in India’s major stock exchanges wisely.
