How many Stock Exchange in India？ Which is the oldest Stock Exchange in India?

The most widely held belief in India is that the available stock exchanges include the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). A valid question that arises frequently is how many stock exchange in India.

Brokers looking for more profitable investment opportunities outside of popular beliefs will find this article very useful. We'll discuss the list of stock exchanges in india, the oldest stock exchange in India, what the first computerised online stock exchange in India was all about, and the various types of stock exchange in India.

The stock exchange is where brokers and other traders can buy and sell securities, shares, bonds, and other financial instruments. India's stock exchange is one of the oldest markets in Asia and serves as a barometer of the country's economic health and progress. Over time, the market has evolved into an electronic marketplace, with securities traded in dematerialised form.

There are nine recognised stock exchanges in India, including commodities and derivatives exchanges, with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on top of the list. While the stock exchanges provide a means for the owners of businesses to be bought, the commodity exchange is a market where buyers and sellers trade goods derived from the earth, such as gold, silver, and other valuables.

One significant distinction between these markets is that commodity exchanges are used not only for investment purposes but also for business operations.

The first stock exchange in India is the Bombay Stock Exchange or BSE, founded in 1875 and based in Mumbai. The exchange is not only the oldest in India but in Asia as well. In 1957, the Government of India recognised the BSE under the Securities Contracts Regulation Act, which currently lists nearly 6,000 companies.

BSE launched its first benchmark index in 1986, the S&P BSE Sensex, which serves as a barometer for the stock exchange's overall performance. In 1995, BSE adopted a fully electronic trading system that allows investors to place market orders through direct market access without requiring external specialists. The Securities and Exchange Board of India (SEBI) regulates the exchange to ensure its smooth operation.

National Stock Exchange

The first computerised online stock exchange in India was the National Stock Exchange (NSE). This is another leading stock exchange in India, also established in Mumbai. It began operations in 1992, offering investors a fully automated screen-based trading instead of conventional floor trading. Based on previous operations, only a few people could access price information, but with NSE, brokers can access price information from their respective locations.

In 1994, the NSE began operations in the Wholesale Debt Market (WDM) segment after being recognised as a stock exchange under the Securities Contracts Act of 1956 in 1993. Since its inception, the NSE has become a demutualised exchange, with ownership, management, and trading held by three distinct groups of people, consisting of financial institutions, like banks and insurance companies.

The following are the types of stock exchanges operating in India in 2022 aside from the BSE and NSE:

Lists of Stock Exchanges in India:

1.    Calcutta Stock Exchange Limited

Calcutta Stock Exchange or CSE is Southeast Asia's second oldest stock exchange, founded in 1908 with 150 members. It is currently located in the Lyons Range and recognised under the relevant provisions of the Securities Contract (Regulation) Act of 1956. CSE-40 is the CSE index, which is like Sensex and Nifty. However, despite being India's stock exchange that will always remain in existence, trading on the CSE has ceased. SEBI has requested that CSE should stop the stock exchange business. However, CSE has objected by taking the case to court but is yet to be finalised.

2.     India International Exchange

India's first international exchange, also known as INDIA INX, is a subsidiary of the BSE. It started running in 2017 at Gujarat's GIFT city's International Financial Services Centre (IFSC). It is the world's fastest exchange, with a turnaround time of 4 microseconds, allowing Indians, NRIs, and international investors to trade at any time and from any location. The exchange provides a single segment approach to all asset classes and allows investors to trade currency derivatives, equity derivatives, commodity derivatives, index derivatives, and stock derivatives. India INX offers global experts and market participants, an offshore exchange with innovative products and services, as well as tax advantages.

3.     Metropolitan Stock Exchange of India

The Metropolitan Stock Exchange of India Limited or MSE is recognised by the Securities and Exchange Board of India (SEBI). The Ministry of Corporate Affairs, Government of India, issued notice on December 21, 2012, designating the exchange as a "recognised stock exchange" under Section 2(39) of the Companies Act, 1956. The exchange is a full-service provider of equity derivatives and currency derivatives in the stock exchange market.

MSE is a high-tech, transparent, and electronic trading platform for the capital market. Major shareholders of this exchange include India's top public sector banks, domestic financial institutions, and private sector banks.

The clearing and settlement of trades made on MSE are carried out through a separate clearing corporation arm, Metropolitan Clearing Corporation of India Ltd. (MCCIL), a subsidiary of the exchange, by international best practices and regulatory requirements. Axis Bank, Bank of India, Central Bank of India, HDFC Bank, Yes Bank, and Canara Bank are among the banks MCCIL has appointed to provide clearing and banking services. IDBI Bank, ICICI Bank, Kotak Mahindra Bank, State Bank of India, and Union Bank are other banks with this appointment. MCCIL serves as the central counterparty to all trades on MSEI.

4.    NSE IFSC Ltd (Nse International Exchange)

NSE IFSC Limited (NSE International Exchange) was incorporated in 2016 by the National Stock Exchange of India Limited (NSE) owned subsidiary. It operates with the approval of the Securities and Exchange Board of India (SEBI) to establish an international exchange in Gujarat International Finance Tech City (GIFT) - International Financial Service Centre (IFSC) Gandhinagar. Exchange and financial services businesses based in the GIFT IFSC can take advantage of the competitive tax rates and helpful regulatory environment. These advantages include being exempt from income tax, dividend distribution tax, capital gains tax, and the tax on the sale of securities and commodities.

5.    National Commodity & Derivatives Exchange

The National Commodity Derivatives Exchange (NCDEX), based in Mumbai, is an online commodity trading exchange established in 2003. It is known as one of the biggest agricultural commodity exchanges in the world, where derivatives like refined oils, wheat, channa, soya beans, and other kinds of seeds are exchanged. Its client base is over 3,000,000. Large public sectors like banks and national-level organisations, including the National Bank for Agriculture and Rural Development (NABARD), Life Insurance Corporation of India (LIC), Punjab National Bank (PNB), National Stock Exchange of India Limited (NSE), Canara Bank, CRISIL Limited, and Indian Farmers Fertilizer Cooperative Limited, make up the majority of NCDEX's shareholders (IFFCO).

6.    Multi Commodity Exchange of India

The Multi Commodities Exchange of India Limited, or MCX, is a Mumbai-based exchange for commodity derivatives. It is supervised by the SEBI regulatory framework and started operating in November 2003. By enabling the online trading of commodities derivatives contracts, MCX offers a platform for price discovery and risk management. The market enables brokers to trade commodities including agricultural products including cotton, rubber, crude oil, and palm oil, as well as natural gas, crude oil, silver, and gold.

7.    Indian Commodity Exchange

Indian Commodity Exchange or ICEX is an exchange where commodity derivatives are traded. It began operations in 2017 and launched its steel long contract after a year. It has its headquarters in Mumbai and allows approved brokers across the country to trade certain derivatives. ICEX is uniquely positioned to capitalise on the enormous potential of the commodities market while also encouraging actual users to participate to benefit from the opportunities for hedging, risk management, and supply chain management in commodities markets.

We've been able to discuss how many stock exchange in India, the oldest stock exchange in India, types of stock exchange in India, and what the first computerised online stock exchange in India was. However, there were some stock exchanges in India that no longer operates. Here is a lists of the stock exchanges in India that formerly existed:

History Stock Exchanges in India :

Gujarat Stock Exchange (closed in 2018)

The New Delhi Stock Exchange (closed in 2017)

Gauhati Stock Exchange (GSE) (closed in 2015)

Stock Exchange of Jaipur (closed in 2015)

Madhya Pradesh Securities Exchange (closed in 2015)

MSE (Madras Stock Exchange) (closed in 2015)

India's OTC Exchange (closed in 2015)

The Mumbai Stock Exchange (closed in 2015)

The Uptown Stock Exchange (closed in 2015)

Vadodara Stock Exchange (VSE) (closed in 2015)

The Bangalore Stock Exchange (BSE) (closed in 2014)

The Kochi Stock Exchange (trading stopped in 2005, closed in 2014)

India's Stock Exchange Is Interconnected (closed in 2014)

Ludhiana Stock Exchange (LSE) (closed in 2014)

Stock Exchange of Bhubaneshwar (closed in 2005)

Stock Exchange of Coimbatore (requested exiting trading in 2009)

Stock Exchange of Hyderabad (closed in 2007)

Magadh Stock Exchange (MSE) (closed in 2007)