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How Many Companies Are Listed In Indian Stock Market?

Indian Stock Market

A stock market is a place where shares and other financial assets are traded. It is regulated by the Securities and Exchange Board of India (SEBI).

It comprises exchanges, companies, brokers, and other participants. Getting listed on the stock market is also a complex process.

It involves a number of steps, including appointing a merchant banker, filing a draft prospectus, obtaining various clearances and approvals, determining pricing, launching the IPO, and inviting subscriptions from the public.

There is no limit to the number of businesses listed on Indian exchanges. With each passing year, several Indian companies are opting to list themselves.

With the advent of dedicated platforms specifically designed for Small and Medium Enterprises by both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Both are recognized by the Securities and Exchange Board of India (SEBI).

BSE is Asia’s first stock exchange located in Mumbai, while NSE is the largest in India. The amount of small businesses choosing to market their business has increased as well.

However, how many businesses are listed on the Indian market? If you’re contemplating this, This is the answer.

How Many Companies are Listed in the Indian Stock Market?

In India, there are two main stock exchanges: The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Some companies opt to get their own listings on only one exchange, while others prefer to be listed on both exchanges to get better exposure. Because of this, the number of businesses listed on these exchanges varies.

Companies listed on the Bombay Stock Exchange (BSE)

Its index, the Sensex, comprises 30 well-established and financially sound companies. It is calculated based on free-float market capitalization and represents different sectors of the Indian economy.

Based on the data available on the website of the Bombay Stock Exchange, around 5,311 companies registered their shares on the BSE on January 13th, 2023.

The market capitalization of all the companies listed on BSE amounts to 2,82,13,564 crores.

This list consists of only firms and excludes mutual funds, Exchange Traded Funds (ETFs) InVITs, REITs, shares with Differential Voting Rights (DVRs), and companies listed on the SME platform of BSE.

Companies listed on the National Stock Exchange (NSE)

NSE is also one of the world’s largest stock exchanges, with a median trade speed of six microseconds. On the official website of the National Stock Exchange, around 2,113 companies have been registered on the NSE since December 31st, 2022.

The market capitalization total of all the companies listed on the NSE amounts to approximately Rs. 2,75,67,268 crores. It has over 8,900 stocks traded daily, with a combined value of more than Rs. 57 trillion. 

This figure excludes DVRs, REITs, InVITs, ETFs, and partially paid shares. NSE has several indexes that are a good indicator of the overall health of the stock market, including the NIFTY 50. These indexes track the performance of the top 50 stocks in each sector.

The NSE is the world’s fourth-largest stock exchange based on equity trading volume. It was founded in 1992 and is headquartered in Mumbai.

The NSE was designed to bring transparency to the Indian market system. It now offers services including trading, clearing, and settlement in debt and equities for domestic and international investors.

In addition to stocks, the NSE lists derivatives and market indices. Its trading system uses an order-driven, electronic limit order book and allows anonymous trades.

Its trading data is available in real-time, and its order-matching process provides greater transparency for traders.

The NSE also maintains a separate platform for small and medium enterprises called the SME platform. This platform aims to encourage more Indian companies to get listed on the NSE.

It also helps companies to raise money in the capital market and promotes economic growth in the country. As a result, the NSE has seen an increase in domestic and foreign companies listed on its platform.

The number of companies listed in India

The stock market is a platform where traders and investors buy and sell financial instruments such as shares and bonds. It is a crucial component of any country’s economy and a major source of employment.

Besides being a place where companies can raise funds, the Indian share market is also an important source of economic information and trends.

This makes it a fascinating field for investors, both local and foreign. However, it is important to note that the Indian share market is not for everyone. 

A company can be listed in the stock market through an initial public offering (IPO). Once a company is listed, it becomes easier for investors to buy and sell its shares.

Besides, it is easy to find information about the company online. However, it is important to do your research before making any investments.

Then, you can make the right decision for your investment needs. You can also consult with financial advisors and experts to ensure that your investment decisions are in line with your goals and risk appetite.

How to List a Company in the Indian Stock Market?

A company’s listing on the Indian stock market requires a number of steps, such as meeting the standards of eligibility established by SEBI and appointing a merchant banker, getting in-principle acceptance from the exchange submitting the prospectus draft in conjunction with SEBI, along with the stock exchange getting various permits and authorizations, as well as determining what the price for the issue initiating an IPO and inviting the participation of the general public, allotment of shares.

Then listing the shares of the company on the exchange to trade on. It’s a complicated and lengthy procedure and could require the assistance of professionals such as accountants and lawyers.

The process of listing a company on the stock exchange requires meeting several criteria, including satisfying regulatory requirements. The process can be time-consuming and expensive, and it is a good idea to consult experts for guidance.

Conclusion

Listed companies are those that have their shares available for trading on the BSE and NSE. This makes them publicly accessible and a great option for those looking to invest in India’s market.

However, there are a few things that investors should keep in mind before making any investment decisions. 

Although this should give you a good understanding of the number of companies listed on the Indian stock market, there’s one thing you must know.

There are a few exceptions listed on stock exchanges. A few may be barred from trading or even have extremely low liquidity.

It is a thing you must remember before trying to make a trade in the stock market. Another important thing you need to consider is the existence of an active Demat account.

Without it, you are unable to trade on your Indian trading market. Make sure you start an account with a Demat account before you attempt investing in a stock or future IPOs.

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