Investing Basics

Lesson 10 of 30 2 min read

What a stock exchange is

Key idea

The organised marketplace where shares change hands. In India, mainly the NSE and BSE, watched over by a regulator to keep it fair.

A stock exchange is the regulated venue that matches buyers and sellers of shares, quickly and fairly. In India, the two main exchanges are the NSE (National Stock Exchange) and the BSE (Bombay Stock Exchange). When you buy a share, the exchange is what pairs your order with a seller's.

Who keeps it honest

The whole system is overseen by SEBI, the Securities and Exchange Board of India, the regulator whose job is to protect investors and keep markets fair and transparent. Rules on disclosure, trading, and conduct all trace back to SEBI.

How you actually access it

You needWhat it does
A demat accountHolds your shares electronically
A broker / trading appPlaces your buy and sell orders
A linked bank accountMoves the money

You do not walk onto an exchange floor. You open a demat and trading account with a broker, and their app connects your orders to the exchange. The share sits in your demat account, in electronic form, in your name.

Exchange, broker, demat, regulator: four pieces working together so that buying a share is as simple as a few taps, with rules quietly protecting you in the background.

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