Competition, Liquidity and Volatility - a Comparative Study of Bombay Stock Exchange and National Stock Exchange

23 Pages Posted: 11 May 2001

See all articles by Chandrasekhar Krishnamurti

Chandrasekhar Krishnamurti

Nanyang Business School

Eugene Lim

National University of Singapore (NUS) - Department of Economics

Date Written: undated

Abstract

India currently has two major stock exchanges: The Bombay Stock Exchange and the National Stock Exchange. There are important differences in ownership structure, geographic reach, internal controls systems and institutionalized risk management facilities between the Bombay Stock Exchange and the National Stock Exchange. The purpose of this study is to examine if these significant structural differences between these stock exchanges contribute to variations in observed measures of quality of markets. We use a paired comparison approach and document significant differences in liquidity and price volatility between the two markets.

Suggested Citation

Krishnamurti, Chandrasekhar and Lim, Eugene, Competition, Liquidity and Volatility - a Comparative Study of Bombay Stock Exchange and National Stock Exchange (undated). EFMA 2001 Lugano Meetings. Available at SSRN: https://ssrn.com/abstract=269648 or http://dx.doi.org/10.2139/ssrn.269648

Chandrasekhar Krishnamurti (Contact Author)

Nanyang Business School ( email )

S3-B1B-76 Nanyang Avenue
Nanyang Technological University
Singapore 639798
Republic of Singapore
(65) 790-5702 (Phone)
(65) 791-3697 (Fax)

Eugene Lim

National University of Singapore (NUS) - Department of Economics

1 Arts Link, AS2 #06-02
Singapore 117570, Singapore 119077
Republic of Singapore

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