{"id":852,"date":"2015-11-12T12:05:10","date_gmt":"2015-11-12T06:35:10","guid":{"rendered":"http:\/\/abhinav.spsdarj.org\/?p=852"},"modified":"2016-01-14T22:27:03","modified_gmt":"2016-01-14T16:57:03","slug":"why-do-we-have-two-stock-exchanges-bse-and-nse-is-one-not-sufficient","status":"publish","type":"post","link":"https:\/\/abhinavkr.com\/musings\/2015\/11\/why-do-we-have-two-stock-exchanges-bse-and-nse-is-one-not-sufficient\/","title":{"rendered":"Why do we have two stock exchanges BSE and NSE? Is one not sufficient?"},"content":{"rendered":"

Answer by Balaji Viswanathan:<\/p>\n

Bombay Stock Exchange and National Stock Exchange are both private companies [sometimes people assume they are government organizations like the Reserve Bank]. Think of stock exchanges as eBay or your favorite shopping website. You can buy the same book published by the same company through multiple shopping websites. In the same way, you can buy Infosys stock through multiple stock exchanges. <\/p>\n

How many shops can you have? Many. As long as you have customers and suppliers. Same for the number of stock exchanges. As long as you have companies trying to sell their shares through you and traders trying to buy the shares, you can run a profitable stock exchange. We still have 21 although most are very small or irrelevant. <\/p>\n

Would you rather have just one Flipkart or have competition from multiple shopping websites so that the commission charged by the website is low? I would prefer multiple websites so that I could pick and choose. <\/p>\n

BSE is the older company dating back to 1875 and by 1992 the government found that it was slacking. BSE had no competition back then and its brokers were a closed group of merchants. There was very little technology, transparency or openness. That was not good for country that was just opening up.<\/p>\n

Thus, in 1992 Narasimha Rao prodded a bunch of government companies such as LIC, IDBI and SBI to create a new stock exchange company with the best of technology available and a much more open system of admitting brokers. Anyone with expertise could become a broker in this new company and not just some nephew of a powerful Dalal street merchant. This new exchange also provide better data on the prices and thus it became quite easy for ordinary traders to enter the stock markets. <\/p>\n

Also see: Selling to India's Consumer Market<\/a><\/span>  and Page on nseindia.com<\/a><\/span><\/p><\/blockquote>\n

Why do we have two stock exchanges BSE and NSE? Is one not sufficient?<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Answer by Balaji Viswanathan: Bombay Stock Exchange and National Stock Exchange are both private companies [sometimes people assume they are government organizations like the Reserve Bank]. Think of stock exchanges as eBay or your favorite shopping website. You can buy the same book published by the same company through multiple shopping websites. In the same…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4,11],"tags":[],"class_list":["post-852","post","type-post","status-publish","format-standard","hentry","category-knowledge","category-quora-post"],"jetpack_publicize_connections":[],"jetpack_shortlink":"https:\/\/wp.me\/p4KGvB-dK","jetpack-related-posts":[{"id":646,"url":"https:\/\/abhinavkr.com\/musings\/2014\/10\/what-does-it-feel-like-to-be-poor\/","url_meta":{"origin":852,"position":0},"title":"What does it feel like to be poor?","author":"Abhinav","date":"October 31, 2014","format":false,"excerpt":"Answer by Anonymous: I was born into family of lower middle class .We are two girls and I'm the Elder one.- Dad and his family are against Girls education and career. I was consistently class topper and excelled in many extra-curricular, But always been put down\u00a0 - \" Learn cooking\u2026","rel":"","context":"In "Quora Post"","block_context":{"text":"Quora Post","link":"https:\/\/abhinavkr.com\/musings\/category\/quora-post\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":648,"url":"https:\/\/abhinavkr.com\/musings\/2014\/11\/whats-an-expert-i-sincerely-want-to-know\/","url_meta":{"origin":852,"position":1},"title":"What’s An Expert? I Sincerely Want To Know.","author":"Abhinav","date":"November 1, 2014","format":false,"excerpt":"Post by James Altucher: On Quora someone asked, \"should answers be categorized by expert \/ non-expert?\" My response: There is no such thing as an expert. First, a couple of anecdotes. In 1799, George Washington caught a cold. He was coughing and he had a fever. This was considered an\u2026","rel":"","context":"In "Quora Post"","block_context":{"text":"Quora Post","link":"https:\/\/abhinavkr.com\/musings\/category\/quora-post\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":967,"url":"https:\/\/abhinavkr.com\/musings\/2016\/07\/what-is-the-latest-fad-among-the-youth-of-india\/","url_meta":{"origin":852,"position":2},"title":"What is the latest fad among the youth of India?","author":"Abhinav","date":"July 25, 2016","format":false,"excerpt":"What is the latest fad among the youth of India? by @iAmoghAnswer by Amogh Talpallikar:Let me take this opportunity to highlight a trend that I have observed on social media among young Indian IT \u201cprofessionals\u201d.They grow up having not explored nooks and corners of their heart to find out what\u2026","rel":"","context":"In "Fun Stuff"","block_context":{"text":"Fun Stuff","link":"https:\/\/abhinavkr.com\/musings\/category\/fun-stuff\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":752,"url":"https:\/\/abhinavkr.com\/musings\/2015\/03\/25-things-ive-learned-about-life\/","url_meta":{"origin":852,"position":3},"title":"25 Things I’ve Learned About Life: Post by Derrick Fung.","author":"Abhinav","date":"March 28, 2015","format":false,"excerpt":"When I turned 25 a few months ago, I wrote down some of the things I've learned over my short time on earth. 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