Why do we have 2 stock exchanges?

Question

Why do we have 2 stock exchanges?

nomi king 5 months 1 Answer 93 views

Answer ( 1 )

  1. Originally Answered: Why we have 2 stock exchages?
    We have 23 stock exchanges at this very point of time.

    trade is universal phenomena
    BSE & NSE are the widely traded and so widely heard, but there are others too (e.g.- Pune stock Exchange, indore stock Exchange Small & Medium Enterprises stock exchange)

    Need of these multiple exchanges-

    1. the same way every country got its own currency, most exchanges area wide

    2. One exchange cannot handle all the trade traffic, so they do not allow everyone to explore them. That is why purpose & size wise exchanges have been framed

    3. Recently exchanges got corporate status (where saurashtra stock exchange stopped functioning). SEBI the regulating authority has some cumbersome procedures for almost every transaction, so to maintain transparency we require more than one function body

    4. Every company getting listed on these stock exchanges have to be listed on at least two exchanges, so that more people can operate on it and it gets well regulated in investor protection direction

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