The terms mentioned above are the most important and essential terms in India Stock Market and you must know them in order to learn about share market. Let us see them one by one in detail.
BSE
The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Mumbai. Bombay Stock Exchange was founded by Premchand Roychand. It is the oldest stock exchange in Asia and was established in 1875.
It is world’s 11th largest stock exchange with market capitalization of almost US$ 2 trillion. It claims to be the world's fastest stock exchange, with a median trade speed of 6 microseconds.
BSE has total number of more than 5700 companies listed. Sensex is the benchmark Index of BSE. On August 31, 1957, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. In 1980, the exchange moved to the Phiroze Jeejeebhjoy Towers at Dalal Street, Mumbai.
Sensex
The term Sensex has been derived from two words that is Sensitive and Index. More than 5000 companies are listed on BSE out of which only 30 selected companies represent Sensex. Sensex is nothing but the calculated weighted average of the performance of 30 companies from various sectors which are listed on BSE. The Sensex is actually calculated every 15 seconds and the value of the index is made available in real time. It represents almost all the sectors well through representative companies.
NSE
NSE or National Stock Exchange was incorporated in 1992 and is located in Mumbai. NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system. Nifty or Nifty 50 is benchmark index of NSE. More than 1600 companies are listed on NSE. NSE is 12th largest stock exchange in the world with the total market capitalization of approx. US$ 1.41 trillion.
Nifty
Nifty is Index that is introduced by NSE and has been derived by merging the two words ‘National’ and ‘fifty’.
Nifty is also known as Nifty Fifty. More than 1600 companies are listed on NSE out of which only 50 selected companies represent Nifty. Nifty or Nifty 50 is nothing but the calculated weighted average of the performance of 50 companies from various sectors which are listed on NSE.
SEBI
The SEBI or Securities and Exchange Board of India is the regulator for the securities market in India. It was established in the year 1988 and given statutory powers on 30 January 1992 through the SEBI act 1992. SEBI plays a vital role in maintaining stable and efficient financial and investment markets by creating and enforcing effective regulation in India's financial marketplace. SEBI's management is composed of its own members. The management team of SEBI consists of a chairman nominated by the Union Government of India, two members who are officers from the Union Finance Ministry, one member from the Reserve Bank of India and five other members who are also nominated by the Union Government of India.
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