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Bombay Stock Exchange (BSE) of India


The oldest stock market in Asia, BSE stands for Bombay Stock Exchange and was initially known as "The Native Share & Stock Brokers Association."

Incorporated in the 1875, BSE became the first exchange in India to be certified by the administration. It attained a permanent authorization from the Indian government in 1956 under Securities Contracts (Regulation) Act, 1956.

Over the year, the exchange company has played an essential part in the expansion of Indian investment market. At present the association is functioning as corporatised body integrated under the stipulations of the Companies Act, 1956.

Some BSE Figures and Facts :

* BSE exchange was the first in India to launch Equity Derivatives, Free Float Index, USD adaptation of BSE Sensex and Exchange facilitated Internet buying and selling policy.

* BSE exchange was the first in India to acquire the ISO authorization for supervision, clearance & Settlement.

* BSE exchange was the first in India to have launched private service for economic training.

* Its On-Line Trading System has been felicitated by the internationally renowned standard of Information Security Management System.

* The BSE is the world's 10th largest stock exchange with an overall market capitalization of more than $2.2 trillion on as of April 2018.

History :

The Bombay stock exchange was founded by Premchand Roychand, an influential businessmen in 19th-century Bombay. He made a fortune in the stockbroking business and came to be known as the Cotton King, the Bullion King or just the Big Bull. He was also the founder of the Native Share and Stock Brokers Association, an institution that is now known as the BSE.

While BSE Ltd is now synonymous with Dalal Street, it was not always so. The first venue of the earliest stock broker meetings in the 1850s was under banyan trees. At last, in 1874, the brokers found a permanent place, called Dalal Street (Brokers' Street).

The Bombay Stock Exchange is the oldest stock exchange in Asia. Its history dates back to 1855, when 22 stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times to accommodate an increasing number of brokers. The group eventually moved to Dalal Street in 1874 and became an official organization known as "The Native Share & Stock Brokers Association" in 1875.

On August 31, 1957, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.

In 1980, the exchange moved to the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area.

In 1986, it developed the S&P BSE SENSEX index, giving the BSE a means to measure the overall performance of the exchange.

In 2000, the BSE used this index to open its derivatives market, trading S&P BSE SENSEX futures contracts.

The development of S&P BSE SENSEX options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform.

The Bombay Stock Exchange switched to an electronic trading system developed by CMC Ltd. in 1995. It took the exchange only 50 days to make this transition. This automated, screen-based trading platform called BSE On-Line Trading (BOLT) had a capacity of 8 million orders per day.

The BSE is also a Partner Exchange of the United Nations Sustainable Stock Exchange initiative, joining in September 2012.

BSE established India INX on 30 December 2016. India INX is the first international exchange of India.

BSE launches commodity derivatives contract in gold, silver.

Keeping in line with the vision of Shri Narendra Modi, Hon’be Prime Minister of Inida, BSE has launched India INX, India's 1st international exchange, located at GIFT CITY IFSC in Ahmedabad.


Last updated on: 02/10/2019

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