Saturday, April 10, 2021

Which is Better NSE or BSE? Where Should You Invest in India?

The equity shareholders often have this query in their minds as should they invest in NSE or BSE. NSE and BSE are the top stock exchanges in India. BSE is the oldest stock exchange of India, established in 1875. NSE was established in the year 1992. The two are the biggest stock exchanges in India with liquidity and allow you to invest in shares in India. There were several other stock exchanges in India like the Bangalore Stock Exchange Ltd, Hyderabad Stock Exchange Ltd, Coimbatore Stock Exchange Ltd, and a few others that have become obsolete.

Where does one invest for greater profits?

Investing in NSE or BSE does not matter it is the quality of the shares that are of prime importance. There are 550 companies listed on the BSE and over 1700 companies listed on the NSE. Irrespective of the exchange it is the stock that matters the most. Before investing make a thorough check regarding the share that should be done to generate maximum profits.

However, there is a minor price difference in the value of shares in both the exchanges. The difference is almost negligible but the brokerage charged by the broker and the Securities Transaction Tax continues to the same on both the NSE and BSE. The volume of trade is much high on the NSE. Therefore it is advisable that when dealing with large quantities of shares it is better to deal in NSE.

It should be remembered that if you buy a share from NSE or BSE, you cannot sell it on the second day. If any such transaction is caught a penalty of 20% is levied. Such irregularity is termed as short-selling, and it implies selling something that you don’t own.