Competition, Liquidity and Volatility - a Comparative Study of Bombay Stock Exchange and National Stock Exchange
23 Pages Posted: 11 May 2001
Date Written: undated
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.
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