BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...

. It is located on

Dalal Street Dalal Street ( hi, script=Latn, dalāl path, mr, script=Latn, dalāl gallī) in Financial District of Fort in Mumbai, is the address of the Bombay Stock Exchange and several financial institutions of the world. The term “Dalal Street” ha ...

Mumbai Mumbai (, ; also known as Bombay — the official name until 1995) is the capital city of the Indian state of Maharashtra and the ''de facto'' financial centre of India. According to the United Nations, as of 2018, Mumbai is the second- ...

. Established in 1875 by cotton merchant

Premchand Roychand Premchand Roychand was a 19th-century Indian Jain businessman known as the "Cotton King" and "Bullion King" from Bombay. Life Premchand Raichand was born in 1832 in a Porwal Jain family. He was the son of Roychand Dipchand, a merchant from Su ...

, a Jain businessman, it is the oldest stock exchange in

Asia Asia (, ) is one of the world's most notable geographical regions, which is either considered a continent in its own right or a subcontinent of Eurasia, which shares the continental landmass of Afro-Eurasia with Africa. Asia covers an area ...

, and also the tenth oldest in the world. The BSE is the 8th largest stock exchange with an overall

market capitalisation Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by t ...

in the world with more than ₹276.713

lakh A lakh (; abbreviated L; sometimes written lac) is a unit in the Indian numbering system equal to one hundred thousand (100,000; scientific notation: 105). In the Indian 2,2,3 convention of digit grouping, it is written as 1,00,000. For ex ...

crore, as of January 2022. Unlike countries like the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

where nearly 70% of the country's

GDP Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced and sold (not resold) in a specific time period by countries. Due to its complex and subjective nature this measure is ofte ...

is derived from large companies in the

corporate sector In economics, the business sector or corporate sector - sometimes popularly called simply "business" - is "the part of the economy made up by companies". It is a subset of the domestic economy, excluding the economic activities of general gover ...

Apple An apple is an edible fruit produced by an apple tree (''Malus domestica''). Apple fruit tree, trees are agriculture, cultivated worldwide and are the most widely grown species in the genus ''Malus''. The tree originated in Central Asia, wh ...

and Tesla, the corporate sector in India accounts for only 12–14% of the national GDP (as of October 2016). Of these only 7,400 companies are listed of which only 4000 trade on the stock exchanges at BSE and NSE. Hence the stocks trading at the BSE and NSE account for only around 4% of the

Indian economy The economy of India has transitioned from a mixed planned economy to a mixed middle-income developing social market economy with notable state participation in strategic sectors. * * * * It is the world's fifth-largest economy by nomin ...

, which derives most of its income-related activity from the unorganized sector and household spending. ''

The Economic Times ''The Economic Times'' is an Indian English-language business-focused daily newspaper. It is owned by The Times Group. ''The Economic Times'' began publication in 1961. As of 2012, it is the world's second-most widely read English-language bus ...

'' estimates that as of April 2018, 6 crore (60 million) retail investors had invested their savings in stocks in India, either through direct purchases of equities or through mutual funds. Earlier, the Bimal Jalan Committee report estimated that barely 1.3% of India's population invested in the stock market, as compared to 27% in the

and 10% in

China China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...

History

Bombay Stock Exchange was started by

in 1875. While BSE Limited is now synonymous with Dalal Street, it was not always so. In the 1850s, five stock brokers gathered together under a Banyan tree in front of Mumbai Town Hall, where Horniman Circle is now situated. A decade later, the brokers moved their location to another leafy setting, this time under banyan trees at the junction of Meadows Street and what was then called Esplanade Road, now Mahatma Gandhi Road. With a rapid increase in the number of brokers, they had to shift places repeatedly. At last, in 1874, the brokers found a permanent location, the one that they could call their own. The brokers group became an official organization known as "The Native Share & Stock Brokers Association" in 1875. The Bombay Stock Exchange continued to operate out of a building near the

Town Hall In local government, a city hall, town hall, civic centre (in the UK or Australia), guildhall, or a municipal building (in the Philippines), is the chief administrative building of a city, town, or other municipality. It usually houses ...

until 1928. The present site near

Horniman Circle The Horniman Circle Gardens is a large park in South Mumbai, India, which encompasses an area of 2½ acres (10,100 m²). It is situated in the Fort district of Mumbai, and is surrounded by office complexes housing the country's premier banks. D ...

was acquired by the exchange in 1928, and a building was constructed and occupied in 1930. The street on which the site is located came to be called ''Dalal Street'' in Hindi (meaning "Broker Street") due to the location of the exchange. On 31 August 1957, the BSE became the first stock exchange to be recognized by the

Indian Government The Government of India (ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the national government of the Republic of India, a federal democracy located in South Asia, ...

under the Securities Contracts Regulation Act. Construction of the present building, the

Phiroze Jeejeebhoy Towers The Phiroze Jeejeebhoy Towers, popularly known by its original name of BSE Towers, is a 29-storey building in downtown Mumbai on Dalal Street, near its intersection with the Mumbai Samachar Marg. The building is owned and occupied by the Bombay ...

, Fort area, began in the late 1970s and was completed and occupied by the BSE in 1980. Initially named the ''BSE Towers'', the name of the building was changed soon after occupation, in memory of Sir

Phiroze Jamshedji Jeejeebhoy Sir Phiroze Jamshedji Jeejeebhoy (1915–1980) was the Chairman of the Bombay Stock Exchange (BSE) from 1966, until his death in 1980. The Bombay Stock Exchange is the largest of its kind in India, and one of the busiest in the world. Jeejee ...

, chairman of the BSE since 1966, following his death. In 1986, the BSE developed the S&P

BSE SENSEX The BSE SENSEX (also known as the S&P Bombay Stock Exchange Sensitive Index or simply SENSEX) is a free-float market-weighted stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange. The 30 ...

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. On 12 March 1993, a car bomb exploded in the basement of the building during the 1993 Bombay bombings. Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system developed by

Cmc ltd CMC Limited was an information technology services, consulting and software company owned by Government of India headquartered in New Delhi, India . In 2001, CMC was sold by Government of India to Tata Consultancy Services and its owner, t ...

. in 1995. It took the exchange only 50 days to make this transition. This automated,

screen-based trading In finance, an electronic trading platform also known as an online trading platform, is a computer software program that can be used to place orders for financial products over a network with a financial intermediary. Various financial products c ...

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 became the first stock exchange in the country to launch commodity derivatives contract in gold and silver in October 2018.

Demutualization and listing

BSE was

demutualized Demutualization is the process by which a customer-owned mutual organization (''mutual'') or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, memb ...

and corporatized on 19 May 2007, pursuant to the ''BSE (Corporatization and Demutualization) Scheme, 2005'' notified by

SEBI The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the ownership of Ministry of Finance within the Government of India. It was established on 12 April 1988 as an executive ...

. It was listed on NSE on 3 February 2017. S&P BSE 500 (1999 to 2020)

References

Notes

Citations

External links