PosiStep 2: Exchanges and regulators: NSE, BSE, SEBI, NYSE, Nasdaq, SEC
In PosiStep 1 you learned that shares are traded on stock exchanges. This PosiStep looks at who runs those exchanges, who makes the rules, and which accounts you need to buy a share.
What a stock exchange does
A stock exchange is a regulated marketplace. It matches orders from buyers and sellers, shows prices to everyone at the same time, and makes sure every completed trade is settled: the buyer gets the shares and the seller gets the money.
Today this is all electronic. There is no shouting on a trading floor; computers match orders in a fraction of a second.
India: NSE and BSE
India has two main exchanges. The BSE (Bombay Stock Exchange), started in 1875, is the oldest exchange in Asia. The NSE (National Stock Exchange), started in the early 1990s, brought fully electronic trading and is now the larger of the two by trading volume.
Most large companies are listed on both. The same company has a short name on the NSE (Infosys is INFY) and a number on the BSE (Infosys is 500209). Trading runs from 9:15 am to 3:30 pm, Monday to Friday, except on market holidays.
United States: NYSE and Nasdaq
The NYSE (New York Stock Exchange) traces its history back to 1792 and lists many of America's oldest large companies. Nasdaq, started in 1971 as the first electronic market, is home to many technology companies, including Apple.
US trading runs from 9:30 am to 4:00 pm Eastern Time, which is evening and night in India. A US share is identified by its ticker, such as AAPL for Apple.
The regulators: SEBI and the SEC
A regulator writes the rules and protects investors. In India this is SEBI (Securities and Exchange Board of India); in the US it is the SEC (Securities and Exchange Commission).
They decide what companies must disclose, register brokers, watch for cheating such as insider trading, and can punish companies and people who break the rules. Many of the red flags PositoAI shows come from orders issued by regulators and exchanges.
Brokers, demat accounts and trading accounts
You cannot buy directly from an exchange. You go through a broker, a firm registered with the regulator, usually through its app or website.
In India you need two accounts, often opened together with one broker: a trading account to place buy and sell orders, and a demat account (dematerialised) where your shares are kept in electronic form, like a bank account for shares. Demat accounts are held with India's two depositories, NSDL and CDSL. A bank account is linked to move money in and out.
In the US, one brokerage account usually does both jobs. PositoAI does not recommend any broker; compare charges and services yourself.
Where PositoAI fits
Every company page on PositoAI shows the exchange where the company trades. The stock market holidays page lists the days the NSE, BSE, NYSE and Nasdaq are closed.
Key terms
- Stock exchange
- A regulated electronic marketplace that matches buy and sell orders and settles trades.
- NSE and BSE
- India's two main stock exchanges; most large Indian companies are listed on both.
- NYSE and Nasdaq
- The two largest US stock exchanges.
- SEBI and SEC
- The market regulators of India and the US: they write the rules and protect investors.
- Broker
- A registered firm that places your orders on the exchange.
- Demat account
- An account that holds your shares electronically (India), with NSDL or CDSL.
Try it
Riya buys 20 shares of a made-up company, Lotus Paints, through her broker's app. After the trade is settled, where are her shares kept?
In India, shares are held electronically in a demat account. The bank account only holds money; the exchange matches trades but does not keep your shares.
See it live on PositoAI
Open the stock market holidays page and find the next day the NSE is closed. Then open Infosys and Apple on PositoAI and note the exchange shown for each.
What this does not tell you
Knowing where a share trades says nothing about the company itself. A company listed on a big exchange can still be weak, and regulators cannot prevent losses; they set rules, they do not guarantee results.
Quick quiz
Which is India's oldest stock exchange?
The BSE (Bombay Stock Exchange) started in 1875 and is the oldest stock exchange in Asia.
What does SEBI do?
SEBI is the regulator: it writes rules, registers brokers and acts against wrongdoing. It does not sell shares.
In India, which account holds your shares?
The trading account is used to place orders; the demat account holds the shares electronically.
Apple is listed on which exchange?
Apple trades on Nasdaq under the ticker AAPL. The SEC is the US regulator, not an exchange.
What are Indian stock market trading hours on a normal weekday?
NSE and BSE trade from 9:15 am to 3:30 pm IST. 9:30 am to 4:00 pm is US time (Eastern).
Answer every question on this page correctly to complete this PosiStep.
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PosiCourse is for education only. It does not recommend buying or selling any share. Examples with made-up numbers are not real companies. PositoAI is for research and education only and is not investment advice.