What is stock exchange?
A stock exchange is the main pillar of the ever-green stock market eco-system. It is a place where companies raise funds for their business expansion and traders/investors earn money by buying-selling stocks and its derivatives.
To know more read what is stock exchange
Do I have to pay a fee for trading on the stock exchange?
Yes, you have a to pay a fee to the stock exchange in order to buy-sell stocks and its derivatives. This fee is called transaction/turnover charge. Every exchange has set its fee differently. Apart from exchange fee, you have to pay other charges in the stock market. Read different charges in the stock market for details.
Who regulates stock exchange?
In India Securities and Exchange Board of India (SEBI), keeps a check on financial intermediaries and every entity of stock market. Stock exchange is the main entity of stock market. SEBI enforces its bye-laws on stock exchanges just like it does on other entities.
What is the difference between stock exchange and stock market?
There are lots of entities in the stock market eco-system. Stock exchange is one of those entities. While stock exchange and other entities have a physical/digital location, on the other hand, stock market is a term used to collectively represent all the entities dealing with stocks. To know more read Stock market faq
What is the difference between a stock exchange and commodity exchange?
Like stock exchange deals only with stocks, on a commodity exchange, only commodities (e.g. metals, agricultural products) are traded.
Is stock exchange run by the government?
No, stock exchanges are privately run organizations. It is regulated by a Government organization (SEBI) though.
How many stock exchanges are there in India?
Currently there are 6 active stock exchanges in India, viz.
- BSE Ltd.
- Calcutta Stock Exchange Ltd.
- India International Exchange (India INX)
- Metropolitan Stock Exchange of India Ltd.
- National Stock Exchange of India Ltd.
- NSE IFSC Ltd.
Which is the oldest stock exchange in India?
Bombay Stock Exchange (BSE) is the oldest stock exchange in India established in 1875. Read more on Bombay stock exchange.
What is regional stock exchange?
After BSE was established in 1875, lots of exchanges at regional level emerged to facilitate the trading of local stocks. These are called regional exchanges. At that time the digital platform was not introduced thus it was also beneficial for local companies to list their stock and get trades on local exchanges. Govt of India, in 1985 imposed a requirement for all companies to get listed on the local exchange where the company office/asset address belonged.
When leading exchanges in India adopted the digital platform and started trading nationwide, companies listed on both national and regional level saw huge trades on national exchanges as compared to regional exchanges. SEBI in 2003 gave companies the choice to get listed on the national or regional exchange.
After 2003 lots of regional exchanges have exited the bourse (stock exchange) business. Currently, there are only two regional exchanges active (Ahmedabad and Calcutta) which soon seem to exit the bourse business as well.
Is there any International stock exchange in India?
Yes, there are two international stock exchanges in India. One is owned by BSE (India INX), other is owned by NSE (NSE IFSC Ltd.)
What is an index of the stock exchange?
An index of a stock exchange represents the volatility of the selected scrips of the exchange. It also represents investor sentiments in the market and seen as an economic barometer of a country.
What is the timing of stock exchange?
Stock exchanges in India open at 09:15 and close at 15:30. There is a pre-market session of 15 minutes from 09:00 to 09:15.
Read more about pre-market session
Is stock exchange open today?
Stock exchanges are open on weekdays and closed on weekends. Apart from this, they are also closed on exchange’s officially announced holidays for the financial year.
To know if stock exchange is open today see Stock Market Holiday for 2019
What is a circuit breaker in stock exchange?
As per the SEBI intructions, whenever a scrip or a stock exchange index fluctuates more that a threshold (called circuit) in any direction a circuit breaker kicks in. This circuit breaker halts the market for some hours or for whole day. Circuit breaker concept is applied to give traders some time to verify the reason for the sudden huge fluctuation and settle down the market sentiments.
Read more on what is circuit breaker.
How can I start trading in the stock exchange?
For trading, you need a trading account. You can not enter the premises of stock exchange to open a trading account. Stock exchange provides a license to the broker for the same. You have to approach a broker for a trading account. You can choose a full-service broker or a discount broker.
What if I face a scam from the stock exchange?
You can not face a problem with an exchange because you don’t deal with a stock exchange directly. You deal it through one of the intermediaries called a broker. So, if you feel cheated, its a problem from your broker’s side. Contact him and try to resolve.
In case you don’t get the resolution of your problem, SEBI has set up a platform to listen to investor’s grievances called SCORES.