Brief Introduction of Bombay Stock Exchange

The BSE is India's & Asia's oldest exchange which began 140 years ago under a banyan tree! It was India's primary exchange till the emergence of the NSE. Its index, the BSE SENSEX is one of the most widely tracked index in India & stands as a barometer for the economy.


Blue and Yellow Graph on Stock Market Monitor


The Bombay Stock Exchange (BSE) is Asia's oldest stock exchange. 
Based in Mumbai, India, BSE was established in 1875 as the Native Share & Stock Brokers' Association.
Prior to that brokers and traders would gather under banyan trees to conduct transactions. 
BSE functions as the first-level regulator in the securities market, providing monitoring and surveillance mechanisms that are able to detect irregularities and manipulations in stock prices. 
The Exchange also provides counter-party risk management in all transactions that take place on its trading platform through its clearing and settlement services. 
Shares of more than 5,000 companies are traded on BSE. 
In addition to equity and debt, the Exchange allows for trading of mutual fund units and derivatives.
Bombay Stock Exchange was recognized as an exchange under the Securities Contracts (Regulation) Act in 1957.
 Its benchmark index, the Sensitive Index (Sensex) was launched in 1986. 
In 1995, the BSE launched its fully automated trading platform called BSE On-Line Trading system (BOLT) which fully replaced the open outcry system.
In 2005, the Exchange changed from being simply an association of brokers to became a corporate entity. 
The administrative structure of the Exchange is headed by a board of directors, below which is a governing council and management that presides over its day-to-day functioning.

Evolving from an open outcry system, the BSE also shifted to electronic trading mode in a record 50 Days.

With increased connectivity, the BSE was the first Indian Exchange to launch Mobile Trading in 2010.

Despite being 140 years old, the BSE is India's fastest exchange with 6 micro seconds!

Trading on the BSE electronically is done through the BOLT (BSE On Line Trading) System.

Anyone interested in trading on the BSE needs to approach a Stock Broker like SAMCO. It is not possible for non-members to trade without a membership of the exchange.

The BSE earns its income via “Transaction Charges”, which are charged separately by every broker.


The BSE also launched the BSE SME Platform for small & medium enterprises companies looking to get capital.

Indices

The S&P BSE SENSEX, published since 1 January 1986, is the benchmark index of the Bombay Stock Exchange. It comprises of 30 companies spread across all sectors and acts as a barometer for measuring market performance.

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