How Many Companies Are Listed on NSE & BSE?

The Indian Stock Market has seen a lot of new investors in the past few years. However, the Indian stock market has not only attracted new investors, but many companies have also turned to financial markets to raise capital. If you’re new to the financial markets and want to know how many companies are listed on the Indian stock exchange or want to learn about the procedure a company follows to get listed on the Indian stock exchange, then this blog is for you.

In this blog, we will tell you how many companies are listed on NSE and BSE, compare NSE and BSE, and discuss the process a company must follow to get listed on the Indian stock market.

Overview of NSE

The National Stock Exchange, or NSE, is one of the top stock exchanges in India and handles a significant daily trading volume, which is among the highest across the world. It was established in 1992, and in 1994, it introduced electronic trading facilities. It became the first exchange in India to provide derivatives trading and today has become the world’s largest derivative exchange. The business debuted the Nifty 50 index in 1996, which follows the movement of the top 50 stocks listed on the National Stocks Exchange according to market capitalization. The NSE is owned and run by various financial organizations such as banks, insurance companies, and other businesses. The Securities and Exchange Board of India (SEBI) oversees its operations. NSE’s corporate headquarters is in Mumbai. 

Overview of BSE

Bombay Stock Exchange, or BSE, is Asia’s biggest and most efficient stock exchange. Premchand Roychand established the company in 1875 and was then named as “Native Share and Stock Brokers Association.” The Securities Contract Regulation Act was introduced in 1956, and the Government of India officially made it the official stock exchange. The exchange unveiled the first index, the BSE Sensex, in 1986 as the benchmark of the top 30 listed businesses according to free-float market capitalization. They raised funds from the general public to continue their expansion, and in 2017, they got listed on the Indian stock exchange. The Indian Clearing Corporation Limited (ICCL) is a subsidiary of BSE and provides clearing, settlement and risk management to BSE. The organization’s corporate office is in Mumbai. 

How Many Companies are Listed on NSE and BSE in 2024?

In recent times, many companies have launched IPOs and have added to the total number of firms listed on the NSE and BSE. The total number of firms listed on NSE and BSE are:

• NSE: A total of 2,379 firms, comprising all three market capitalizations—large cap, mid-size, and small-cap—are listed on the NSE in India, according to statistics released by the National Stock Exchange on 31 March 2024. A total of 124 companies are listed on the exchange which are not available for trading. All listed companies on the NSE have a combined market capitalization of INR 454.64 lakh crores as of 21 August 2024. 

• BSE: As of 18 October 2024, the market capitalization of all 5,511 listed businesses on the Bombay Stock Exchange is INR 459.41 lakh crores. The 5,511 companies don’t include Exchange Traded Funds, Real Estate Investment Trusts, Infrastructure Investment Trusts, and Differential Voting Right Shares. 

Comparison Between NSE and BSE

We have provided you with the comparison between the NSE and BSE below-mentioned table-

Listing Process in the India Stock Market

The company that decides to go public launches an initial public offering (IPO) and can pick between NSE and BSE, or it can list on both stock exchanges. The following are the steps one must take to get listed: 

• Eligibility Criteria – The initial step towards getting listed on the Indian stock market is to meet the eligibility criteria set out by the Securities and Exchange Board of India related to financial statements, corporate governance, etc. 
• Appointment of Merchant Banker – The next step towards the listing process is the appointment of a merchant banker or lead manager, who will be responsible for handling all the procedures related to the IPO. 
• Filing of Regulatory Documents – The Merchant Banker prepares the documents related to the IPO and files the Draft Red Herring Prospectus (DRHP) with the SEBI and the exchange.
• Approval from SEBI – SEBI and the exchange verify and approve the application if all the required criteria are met.
• Issuance of RHP – The merchant banker files the Red Herring Prospectus with ROC, which states the details related to the IPO.
• Issuance of IPO – The IPO will be opened for subscription, and investors can place their bids through ASBA (Application Supported by Blocked Amount) to subscribe to the IPO.
• Allotment of Shares – The shares get allotted to the investors who had subscribed to the IPO in case of an undersubscribed IPO. If the IPO is oversubscribed, the registrar conducts a lottery to allot shares.
• Listing – This is the last step, where the company gets itself listed on the stock exchange, and its shares begin to trade.

The Future Outlook for NSE and BSE

The National Stock Exchange and the Bombay Stock Exchange have significant growth potential as they are the major exchanges in the Indian financial system. Additionally, the expansion of NSE and BSE will continue due to the rise in the number of investors and economic growth. Also, due to the higher long-term return on equity investments, people are becoming more aware of their advantages. Additionally, foreign investors are drawn to Indian equity because they have the chance to participate in India’s growth narrative by investing in Indian equities through the NSE and BSE. 

Conclusion

The National Stock Exchange and the Bombay Stock Exchange play a significant part in the country’s economic development. They give investors and companies a platform to invest and raise capital respectively in the Indian Capital Market. These platforms have a large number of listed businesses that seek to grow by raising money from the general population. The NSE and BSE will experience significant growth in the near future due to rising investor participation, economic growth, and the growth of novel financial products. 

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