A practical guide to the Indian stock market
NSE, BSE, SEBI regulation, demat accounts, T+1 settlement, and key index methodologies.
By MarketPulse Editorial · 2/10/2026 · 8 min read
India runs two major stock exchanges: the National Stock Exchange (NSE), headquartered in Mumbai, and the Bombay Stock Exchange (BSE), the oldest in Asia. NSE dominates equity volumes; BSE retains a long list of niche and SME listings.
SEBI is the Securities and Exchange Board of India — the statutory regulator. Brokers, exchanges, mutual funds, and registered investment advisers all operate under SEBI rules. If you receive personalised investment advice in India, the adviser must be SEBI-registered.
To buy Indian shares you need three things: - A demat account — holds shares electronically (NSDL or CDSL). - A trading account with a SEBI-registered broker. - A linked bank account for settlements.
India runs T+1 settlement: a trade today settles tomorrow. Cash and shares move on T+1, which is faster than most major global markets.
Key benchmarks. - NIFTY 50 (NSE): free-float weighted basket of 50 large-cap stocks. - SENSEX (BSE): free-float weighted basket of 30 large-cap stocks. - BANK NIFTY: 12 most liquid bank stocks — a heavily traded derivatives underlying. - NIFTY IT / AUTO / PHARMA / FMCG: sector indices.
Many global investors access India via FII (foreign institutional investor) and FPI (foreign portfolio investor) routes; FII/DII holding patterns are tracked closely as a sentiment indicator.
Risk reminder. Equity investing carries the risk of capital loss. Past performance does not guarantee future returns. Consult a SEBI-registered investment adviser before acting.
Educational only — not financial advice. Educational only — not financial advice. Markets are risky. Consult a SEBI-registered investment adviser or licensed financial professional before investing. Read full disclaimer.