NSE vs BSE: Where’s the competition? | Mint Primer

The NSE was set up in 1992 to counter the brokers-owned BSE that was coming off the Harshad Mehta securities scam that laid bare its opaque governance. The NSE introduced electronic trading in India and replaced the settlement of transactions using physical certificates with dematerialized certificates.

In just its second year of operations, the NSE’s turnover in the cash segment exceeded BSE’s. It’s stayed that way since, and two spurts have widened this gap: one between 2010-11 and 2017-18, when the NSE’s volumes as a multiple of BSE’s increased from 3.2 to 6.7 times, and the other during the pandemic when this multiple shot up to 14.7 in 2021-22.

Let us analyze how the NSE managed to do that and how big the gap is between the NSE and BSE.

#NSE #BSE #finance #mint

Subscribe Now For Latest Updates- https://tinyurl.com/lbw8nze