Are you new to the Indian stock market and curious about how stocks are listed? Or are you simply interested in knowing how many companies are listed on NSE and BSE to see if any catch your eye?
Our blog includes the total companies listed on the Indian stock market as per the latest data records. Additionally, we’ll explain the listing process, detailing how companies like Tata, Britannia, HDFC, etc., gain approval to enter the stock market and sell their shares to the public.
What is a Listed Company
A listed company is a public company that issues shares of its stock on a stock exchange.
What does it actually mean to be a listed company?
This means that the company has met the requirements of the exchange and SEC- the Securities and Exchange Commission for selling shares to the public.
This also means that it is now accepted for trading on the exchange.
Companies get listed on a stock exchange, which can be either NSE or BSE or both, by following a process that involves applying to the exchange, meeting the eligibility criteria, filing the necessary documents, and issuing shares to the public.
The process and the criteria may vary depending on the exchange and the type of listing.
Listing on a stock exchange can help a company raise capital, enhance visibility, and reward employees and investors.
Here is something that you must know.
There isn’t a set cap on the number of companies that are permitted to join the Indian stock market. Over time, more Indian businesses are opting to go public. Thus offering more investment opportunities in the market.
How Many Companies are Listed on NSE?
There are 2,266 companies listed on the NSE. However, out of these, 76 listed companies on the NSE are not available for trading as of December 31, 2023. The market capitalisation of these listed companies on the National Stock Exchange is ₹3,581,291,532.
How Many Companies are Listed on BSE?
There are a total of 5,309 listed companies on BSE, with a market capitalisation of ₹37,636,886.59. However, these listed companies on BSE exclude DVRs, REITs, InVITs, ETFs, and Partly Paid Shares. (The figure pertains to the data shared by BSE on January 24, 2024.
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Listing process in the Indian Stock Market
There are two primary stock exchanges in India – the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
Some companies choose to list on either BSE or NSE, or both, depending on their preference and requirements.
• The Company Must Meet the Eligibility Criteria Set by the Securities and Exchange Board of India (SEBI).
The criteria include minimum post-issue paid-up capital, market capitalisation, track record, financial statements, corporate governance, etc.
• The Company Must Appoint a Merchant Banker
A merchant banker is a financial intermediary that helps the company in multiple aspects, such as:
- Preparing the draft prospectus
- Obtaining in-principle approval from the stock exchange
- Filing the draft prospectus with SEBI and the stock exchange
- Obtaining various clearances and approvals,
- Determining the pricing of the issue,
- Launching the IPO
- Inviting subscriptions from the public, allotment of shares, and finally, listing the company’s shares on the stock exchange for trading.
• The company Must Stick to the Listing Agreement.
It is a contract between the company and the stock exchange that specifies the terms and conditions of listing, such as disclosure requirements, corporate governance norms, investor protection measures, etc.
Conclusion
In this blog, we learned about the Indian stock market, how companies get listed on the BSE and NSE, and how many companies are there in each exchange. Listing on a stock exchange can help a company grow and prosper, but it also requires compliance and transparency. The number and names of the listed companies reflect the sectors and industries that are driving growth and innovation in India.
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FAQs| How Many Companies are Listed in NSE and BSE
There are 30 companies in Sensex, which is the benchmark index of the Bombay Stock Exchange (BSE). It tracks the performance of 30 well-established companies listed on the BSE based on their free-float market capitalisation.
There are 2,266 stocks listed on the NSE. However, out of these, 76 listed stocks on the NSE are not available for trading as of December 31, 2023.
There are a total of 5,309 listed stocks on BSE as of January 24, 2024, with a market capitalisation of ₹37,636,886.59. However, these listed stocks on BSE exclude DVRs, REITs, InVITs, ETFs, and Partly Paid Shares.
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.