Introduction
The Indian stock exchange is a key part of the country’s financial system. It is where companies raise money and where investors buy and sell shares to grow their wealth. This article will explain the basics of the Indian stock exchange and the main exchanges in India.
SEBI (Securities and Exchange Board of India) regulates all stock exchanges in India and ensures transparency, investor protection, and fair trading practices. Currently, India has 7 active SEBI-recognised stock exchanges operating across equity, commodity, and international markets.
What is a Stock Exchange?
A stock exchange is a regulated and organised marketplace where buyers and sellers come together to trade company shares, commodities, bonds, and other financial securities.
There are two types of markets:
- Primary Market – In the primary market, a company issues new shares (IPO – Initial Public Offering) to raise capital for its growth.
- Secondary Market – In the secondary market, existing shares are traded between investors.
Types of Stock Exchanges in India
- Equity Exchanges – Trade stocks, bonds, and equity derivatives
- Commodity Exchanges – Trade futures and options on physical commodities
- International Exchanges – Facilitate cross-border trading (Located in GIFT City)
- Currency-Focused Exchanges – Specialise in currency derivatives
Evolution of Indian Stock Exchanges
India’s stock market journey began in 1875 with the establishment of the Bombay Stock Exchange. Before electronic trading, exchanges operated through open-outcry systems where brokers traded on physical floors. The year 1994–95 marked a revolution when NSE introduced screen-based electronic trading, eliminating the need for physical presence and making trading faster, transparent, and accessible nationwide.
List of Operating Stock Exchanges in India Recognised by SEBI
Equity Stock Exchanges
- Bombay Stock Exchange (BSE)
- National Stock Exchange (NSE)
- Metropolitan Stock Exchange (MSE)
International Stock Exchanges (GIFT City)
- India International Exchange (India INX)
- NSE International Exchange (NSE IX)
Commodity Stock Exchanges
- Multi Commodity Exchange (MCX)
- National Commodity and Derivative Exchange (NCDEX)
- Indian Commodity Exchange (ICEX)
Equity Stock Exchanges
- Bombay Stock Exchange (BSE)
BSE is Asia’s oldest exchange, established in 1875, and the largest stock exchange in India, located in Mumbai, India. As of June 18, 2026, BSE’s market capitalisation was ₹1,62,887 crore (approximately $17.18 billion), with almost 6,004 companies listed on the Bombay Stock Exchange. The market capitalisation of BSE-listed companies is $4.5 trillion, as per the BSE investor presentation. This exchange is recognised by SEBI permanently as a stock exchange.
BSE is authorised by SEBI to trade the following instruments:
- a. Equity
- b. Equity derivatives
- c. Currency Derivatives (Interest Rate Derivatives)
- d. Commodity Derivatives
- e. Debt
- f. Electronic Gold Receipts (EGR)
BSE S&P SENSEX is its flagship equity index, comprising the top 30 large-cap stocks. BSE also has a subsidiary exchange – India INX, India’s first international exchange. It is located in GIFT City IFSC in Ahmedabad.
- National Stock Exchange (NSE)
It is the largest exchange in India, established in 1992 based on the recommendations of the Pherwani committee and recognised as a stock exchange by SEBI in April 1993. In 1994, it commenced electronic, screen-based trading in equity and wholesale debt market segments. As of March 2025, about 2,720 companies were listed on the NSE. The market capitalisation of listed companies is ₹1,77,674 crore (approximately $18.77 billion).
NSE facilitates trading in Equity, Equity Derivatives, Currency Derivatives (including Interest Rate Derivatives), Commodity Derivatives, Debt, and Fixed Income.
NIFTY 50 is its flagship equity index, comprising the top 50 large-cap stocks listed on the stock exchange. NSE also has a subsidiary, NSE IFSC Limited (NSE International Exchange), at Gujarat International Finance Teck (GIFT) City in Gandhinagar. It offers trading in securities in any currency other than Indian rupees.
- Metropolitan Stock Exchange (MSE)
The Metropolitan Stock Exchange is the youngest stock exchange in India. It was recognised as a national-level stock exchange by SEBI in 2008 and notified as a recognised stock exchange by the Ministry of Corporate Affairs in December 2012. The SX40 is its flagship index, comprising 40 large-cap stocks.
This stock exchange offers the following products and services: Currency Derivatives, Equity Derivatives, and Equity Market.
- Calcutta Stock Exchange (CSE)
The Calcutta Stock Exchange is one of the oldest stock exchanges in India, established formally in the early 20th century. Trading at the exchange has been suspended since 2013. SEBI has asked the exchange to exit the business; however, the matter is sub judice.
There were regional stock exchanges too, like the Delhi Stock Exchange, Bangalore Stock Exchange, Madras Stock Exchange, and Ahmedabad Stock Exchange, but all have exited the business now. SEBI has approved the exit of 28 exchanges in India under its policy in the last 10 years.
To see the list of stock exchanges that have exited, visit: https://www.sebi.gov.in/stock-exchanges.html
International Stock Exchanges (GIFT City)
- India International Exchange (India INX)
India International Exchange (India INX) is India’s first international stock exchange at GIFT IFSC. The exchange is regulated by the IFSCA (IFSC Authority) and is a subsidiary of BSE Limited. It offers 24-hour trading in a range of financial market products, such as Index and single stock derivatives, commodity derivatives, currency derivatives, and debt securities, and global equity bonds.
The exchange has introduced the Global Securities Market (GSM) platform, which offers issuers an efficient and transparent method to raise capital. This platform provides a debt listing framework comparable to other global listing locations such as London, Luxembourg, and Singapore. Benefits from this exchange include a waiver of several taxes, such as Securities Transaction Tax (STT), Commodities Transaction Tax (CTT), Dividend Distribution Tax (DDT), Capital Gains Tax, and GST.
- NSE International Exchange (NSE IX)
NSE IX is an international multi-asset exchange set up at GIFT City in June 2017. NSE IX offers a diversified portfolio of products, including Indian single stock derivatives, Index derivatives, depository receipts, and global stocks.
It is a wholly owned subsidiary of NSE India Limited. It is India’s first global access provider; investors can invest in global securities through India itself. There are tax benefits, including no STT, no CTT, no CGT across asset classes for foreign investors, no stamp duty, and a lower withholding tax rate of 9% on interest payments for bonds listed on the IFSC exchange.
Commodity Stock Exchanges
- Multi Commodity Exchange (MCX)
MCX is India’s largest exchange in the commodity derivative segment and the world’s fourth-largest exchange by number of commodities traded. It was established in 2013.
MCX provides trading in commodity derivative contracts across varied segments, including bullion, industrial metals, energy, and agricultural commodities. It has 585 registered members and 32,044 authorised persons across India as of 31 March 2026.
The exchange’s flagship index series is MCX iCOMDEX, which is a series of real-time commodity future price indices. This series consists of a composite index, along with three sectoral indices: the base metal index (MCX MELDEX), the Bullion Index (MCX BULLDEX), and the Energy Index (MCX ENERGYDEX). It also includes eight single commodity indices: Gold, Silver, Aluminum, Copper, Lead, Zinc, Crude Oil, and Natural Gas.
- National Commodity and Derivative Exchange (NCDEX)
This exchange was established in 2003 but got recognition from SEBI in September 2015. It focuses on agricultural commodities.
NCDEX trades in the below-mentioned instruments – Commodity Derivatives such as:
- Grains: Wheat, Pulses, Rice, Corn
- Oilseeds: Soybean, Mustard Seeds
- Fiber: Cotton, Jute
- Sugar: Sugarcane
- Others: Tea, Coffee, Spices, and so on
It launched India’s first rain index in Mumbai. The nation’s first exchange-traded weather derivatives.
- Indian Commodity Exchange (ICEX)
The specialty of ICEX is diamond derivatives. It is regulated by SEBI. The exchange launched the world’s first-ever diamond derivative contracts. In July 2017, ICEX got approval for recommencement of trading operations.
Conclusion
India’s stock exchange landscape is dominated by NSE and BSE for equity trading, with MCX leading commodity markets. The new international exchanges at GIFT City position India as a global financial hub, offering 24-hour cross-border trading.
For investors:
- NSE offers the best liquidity for large-cap trading
- BSE provides access to India’s largest pool of small and mid-cap companies
- MCX is essential for commodity hedging
- India INX/NSE IX enable global exposure without offshore accounts
The consolidation from 23 to 7 exchanges has strengthened market integrity, reduced fragmentation, and improved investor returns. As India targets $5 trillion GDP by 2030, stock exchanges will remain critical engines of capital formation and wealth creation.
Whether you’re a beginner investor or institutional trader, understanding these exchanges is fundamental to navigating India’s dynamic financial markets.
Additional Resources
Official Websites:
- SEBI: www.sebi.gov.in
- NSE: www.nseindia.com
- BSE: www.bseindia.com
- MCX: www.mcxa.com
This article provides educational information. Always consult a financial advisor before making investment decisions.
