The purpose of this study is to examine how the significant structural differences between the two stock exchanges have contributed to variations in observed measures of quality and price volatility. The important differences between BSE and NSE lie in the ownership structure, geographic reach, internal control systems and institutional risk management facilities. The volatility for the indices is measured from the values of co-efficient of variation and standard deviation of the returns of the indices. The study period is from April-2001 to March-2008. One of the main observations from the study is that May 2004 recorded a high volatility of 4.21,4.90,4.32 in NSE for Nifty, Nifty Junior, CNX 500 respectively and in the case of BSE, it was 3.81,3.90,4.21,4.22 for SENSEX, BSE100,BSE200,BSE500 respectively. But for CNX 200, the volatility was high in the month of July 2005[7.12] because in the above period, the CNX 200 index was abolished and the CNX Midcap was introduced with the same set of stocks as in CNX 200.
