Difference Between NSE and BSE: Fees, Expiry & Returns (2025 Guide)

This article covers the critical operational and financial differences between the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) for Indian investors in FY 2025-26. We analyze the distinct liquidity profiles, transaction charges, and updated derivative expiry schedules—including the discontinuation of Bank Nifty weekly contracts. The analysis reveals that while NSE dominates in trading volume and liquidity (ideal for traders), BSE offers a wider universe of listed companies (ideal for value investors) and competitive transaction fees for specific option contracts.

When you open a demat account, you gain access to both India’s premier stock exchanges. While they might look similar on your trading screen, the difference between NSE and BSE goes far beyond their logos. From the speed of trade execution to the types of stocks listed, and significantly, the transaction charges you pay, choosing the right exchange can impact your trading profitability. Whether you are an intraday trader chasing liquidity or a long-term investor hunting for small-cap gems, understanding these nuances is essential for navigating the Indian stock market effectively.

Bombay Stock Exchange (BSE)

Established in 1875 as “The Native Share & Stock Brokers Association,” the Bombay Stock Exchange (BSE) is not just Asia’s oldest stock exchange; it is a historical institution that predates many global financial centers. Located on Dalal Street in Mumbai, it remains a symbol of India’s capital market heritage.

Key Characteristics

• Listing Volume: As of November 2025, BSE hosts over 5,500 listed companies, making it one of the world’s largest exchanges by number of listings. This vast pool includes thousands of small-cap and micro-cap companies (SMEs) that are not listed on the NSE.
• Benchmark Index: The S&P BSE Sensex (Sensitivity Index) tracks the performance of 30 financially sound, well-established companies. It serves as a pulse check for the domestic economy.
• Speed: BSE claims to be the world’s fastest exchange with a median trade speed of 6 microseconds, though in practice, retail investors experience similar speeds on both platforms.

For you as an investor, BSE is often the go-to place for finding hidden gems—companies that are in their early growth stages and have not yet met the stringent listing criteria of the NSE.

National Stock Exchange (NSE)

Founded in 1992, the National Stock Exchange (NSE) disrupted the Indian market by introducing electronic screen-based trading, ending the era of physical open-cry trading. It quickly became the preferred choice for traders due to its massive liquidity and advanced technology infrastructure.

Key Characteristics

• Market Dominance: NSE commands approximately 80% of India’s equity derivative volumes and is consistently ranked among the world’s largest derivatives exchanges. If you trade Futures and Options (F&O), you are likely trading on NSE.
• Benchmark Index: The Nifty 50 index tracks the top 50 companies by market capitalization. It is the most widely traded index in India and the underlying asset for the country’s most popular derivative contracts.
• Liquidity: Due to higher trading volumes, the bid-ask spread (the difference between buying and selling price) is typically narrower on NSE. This lowers the impact cost for active traders.

For intraday traders and F&O participants, NSE is the default playground because high liquidity ensures you can enter and exit positions instantly without significant price slippage.

BSE vs NSE: Key Differences

Understanding the difference between NSE and BSE is crucial for optimizing your trading strategy. Here is a detailed breakdown of their operational metrics as of November 2025.

Data Source: NSE and BSE circulars as of November 2025. Expiry schedules and lot sizes are subject to periodic regulatory revision.

The Derivative Expiry Shift (2025 Update)

FY 2025-26 brought significant changes to F&O schedules. As per SEBI mandates to curb speculative excess, weekly contracts for Bank Nifty and Bankex were discontinued in late 2024. As of November 2025, only the main indices—Nifty 50 (NSE) and Sensex (BSE)—retain weekly expiry contracts, scheduled for Tuesday and Thursday respectively.

Which is Better: NSE vs BSE?

The answer depends entirely on your market activity. There is no single “better” exchange; rather, there is a “better fit” for your specific goals.

For Intraday Traders

Winner: NSE
If you trade frequently, liquidity is your lifeline. NSE’s higher volumes mean there are always buyers and sellers available. This tightens the bid-ask spread. For example, a stock might be quoted at ₹100.05 (Buy) / ₹100.10 (Sell) on NSE, while on BSE it might be ₹100.00 / ₹100.20. That small difference adds up over hundreds of trades.

For Long-Term Investors

Winner: Tie (with a slight edge to BSE for discovery)
For buying blue-chip stocks like Reliance or TCS, it matters little where you buy—prices are arbitraged instantly. However, if you are hunting for small-cap value stocks, BSE is often the only option. Thousands of smaller companies are listed exclusively on BSE. If your strategy involves finding the “next big thing” early, you will need to scan the BSE universe.

For Options Sellers

Winner: Context Dependent
With the new expiry schedule, options sellers often trade both. You might trade Nifty options on Monday/Tuesday (NSE) and shift to Sensex options on Wednesday/Thursday (BSE) to capture time decay (Theta) benefits across the week.

How Has NSE Become More Popular Than BSE?

Despite BSE’s 117-year head start, NSE overtook it rapidly in the 1990s. This shift wasn’t accidental—it was structural.

1. First Mover in Tech: NSE introduced fully automated screen-based trading (NEAT) in 1994, bringing transparency to a market previously dominated by a closed club of brokers.
2. Derivatives Monopoly: For years, NSE had a near-monopoly on high-volume derivative products like Nifty 50 and Bank Nifty. While BSE has recently gained traction with Sensex options, NSE remains the volume leader.
3. Settlement Guarantee: NSE was the first to set up a clearing corporation, guaranteeing settlement of all trades. This eliminated counterparty risk, a massive innovation that built trust among institutional investors.

Today, while BSE has more listed stocks, NSE processes significantly higher value in daily turnover, especially in the F&O segment.

Comparison of BSE and NSE: Where You Should Invest?

For the average investor, the choice of exchange is often automatic. Most modern brokers (like PL Capital) provide access to both. However, knowing where to route your order can save you money.

Transaction Charges (As of November 2025)

Transaction charges are levied by the exchange on the value of your trade. These small percentages can eat into profits for high-frequency traders.

• Equity Delivery: Charges are negligible on both (approx. 0.003%).
• Equity Options:
  • NSE: ₹35.03 per lakh of premium turnover.
  • BSE (Sensex): ₹32.50 per lakh of premium turnover.
  • BSE (Stock Options): ₹5.00 per lakh of premium turnover (Significantly cheaper).

Smart Move: If you are trading stock options (e.g., Reliance Call Option), checking the liquidity and price on BSE might save you transaction fees compared to NSE, provided the bid-ask spread doesn’t negate the saving.

Arbitrage Opportunities

Occasionally, price differences occur between the two exchanges. If Infosys is trading at ₹1,500 on NSE and ₹1,502 on BSE, an arbitrageur could buy on NSE and sell on BSE. However, for retail investors, high-frequency algorithms usually close these gaps in milliseconds.

Conclusion

The difference between NSE and BSE ultimately boils down to utility: NSE provides the depth needed for trading, while BSE provides the breadth needed for investing. In the current FY 2025-26 landscape, savvy market participants utilize both—leveraging NSE’s liquidity for speed and BSE’s cost structures for efficiency. Don’t limit yourself to one venue.

Ready to access the best of both worlds? Open your PL Capital account today and trade seamlessly across NSE and BSE with superior analytics and execution.

FAQs on BSE vs NSE

1. Which is better, BSE or NSE?

For intraday traders, NSE is better due to higher liquidity and narrower bid-ask spreads, which reduce trading costs. For long-term investors looking for micro-cap companies, BSE is better as it lists over 5,500 stocks compared to NSE’s ~2,400.

2. Can I buy from BSE and sell in NSE?

Yes, you can buy shares on BSE and sell them on NSE, but only after they are credited to your Demat account (T+1 day). You cannot do this for intraday trades; intraday positions must be closed on the same exchange where they were opened.

3. Why do traders prefer NSE over BSE?

Traders prefer NSE because it controls over 80% of the derivative market share (as of 2025). This massive volume ensures that large orders can be executed instantly without significantly moving the price (low impact cost), which is critical for profitability.

4. Why is BSE better for beginners?

BSE is not necessarily “better” for beginners, but it is essential for value investors. Beginners looking for small, undiscovered companies will find them only on BSE. However, for standard blue-chip investing, both exchanges offer a similar experience for beginners.

5. What are the Nifty and Sensex expiry days in 2025?

As of November 2025, Nifty 50 weekly derivative contracts expire on Tuesdays, while Sensex weekly contracts expire on Thursdays. Note that weekly contracts for Bank Nifty and Bankex have been discontinued; they now only have monthly expiries (last Tuesday of the month).