In Indian stock markets there are two stock exchanges, BSE(Bombay stock exchange) and NSE (National Stock exchange).Bombay stock exchange (BSE) is known as the largest stock market in Asia.In Indian market , earlier the traders used to gather under banyan trees in front of Mumbai’s town hall to trade in BSE.This location changes frequently as the number of the broker increases.It eventually moved to Dalal Street in 1874.In 1956, the BSE became the first stock market to be recognized by the Indian Government under the Securities Contracts Regulation Act.The BSE sensex was developed in 1986. And in 2002, the name “The Stock Exchange, Mumbai” was changed to BSE .BSE has the largest number of companies listed in it.<br />
With the coming up of capital market reforms in India and with the launch of SEBI, the second Indian stock market called the NSE was integrated in 1992. After the few years of its operations NSE became the largest stock market in India.Most of the trading  in Indian stock market takes place in its  BSE & NSE Both these exchanges follow the same trading mechanism, trading hours and settlement process.BSE had about 4,700 listed firms, whereas NSE had about 1,200. The BSE sensex (BSE 30) is a widely used market index in India.There are other stock trading in India but BSE & NSE accounts for most of the trading.<br />
The NSE has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges.It recommended promotion of a NSE by financial institutions (FIs) to provide access to investors from all across the country on an equal footing.Trading at both the exchanges of Indian stock market takes place through an open electronic limit order book in which order matching is done by the trading computer.Both NSE & BSE follows the same T+2 settlement cycle, this means any trade which happened today will be settled day after tomorrow.The two prominent Indian stock market indexes are Sensex and Nifty, sensex includes shares of 30 companies listed on BSE and nifty includes 50 shares of companies listed on NSE. <br />
In August 2008 NSE introduces Currency derivatives in Indian stock exchange with Currency Futures in USD INR.Interest Rate Futures were also introduced for the first time in Indian stock exchange by NSE on 31st August 2009, exactly after one year of the launch of Currency Futures.The overall responsibility of development, regulation and supervision of the Indian stock exchanges rests with SEBI (Securities and exchange board of India).The SEBI was established on April12 1992, in accordance with the provisions of securities and exchange board of India act, 1992.SEBI protects the interest of the investors in securities and helps in development and regulation of Indian stock exchanges.As per the experts the emerging markets like India are fast becoming engines for future growth.<br />