1.16What is a stock exchange?
A stock exchange is the official, regulated marketplace where shares are bought and sold. India’s main ones are NSE and BSE.
An exchange sets the rules, matches orders electronically, shows prices to everyone and, through its clearing corporation, guarantees that trades are completed (the seller gets money, the buyer gets shares).
An exchange is like a well-run, guarded mall with fixed opening hours, price boards and security. Anyone can shop, but everyone must follow the mall’s rules.
Normal trading hours on NSE and BSE are 9:15 a.m. to 3:30 p.m. (Monday to Friday, except holidays). There is a pre-open session from 9:00 to 9:15 a.m. where the opening price is discovered.
- 19:00 Pre-open (orders collected)
- 29:15 Market opens
- 3Continuous trading
- 43:30 Market closes
- 5Closing price calculated
- An exchange is a regulated marketplace.
- It matches orders and guarantees settlement.
- Trading hours are 9:15 a.m. to 3:30 p.m. IST on weekdays.
Q1. What are NSE’s normal trading hours?Show answer
9:15 a.m. to 3:30 p.m. IST, Monday to Friday.
Q2. Who guarantees that a trade on NSE is completed?Show answer
The exchange’s clearing corporation (NSE Clearing for NSE).
Q3. Can you trade on a Sunday?Show answer
No, the market is closed on weekends and exchange holidays.