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 ...
in
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
A crore (; abbreviated cr) denotes ten million (10,000,000 or 107 in scientific notation) and is equal to 100 lakh in the Indian numbering system. It is written as 1,00,00,000 with the local 2,2,3 style of digit group separators (one lakh is e ...
, 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 ...
like
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
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 ...
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
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 ...
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 15919, ISO: ; often abbreviated as GoI), known as the Union Government or Central Government but often simply as the Centre, is the Government, national government of the Republic of India, a federal democracy lo ...
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 ...
at
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 ...
,
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
The 1993 Bombay bombings were a series of 12 terrorist bombings that took place in Bombay, Maharashtra, on 12 March 1993. The single-day attacks resulted in 257 fatalities and 1,400 injuries. The attacks were coordinated by Dawood Ibrahim, le ...
.
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.
See also
*
National Stock Exchange of India
National Stock Exchange of India Limited (NSE) is the leading stock exchange under the ownership of various group of domestic and global financial institutions, public and privately owned entities and individuals. It is located in Mumbai, Mah ...
*
List of South Asian stock exchanges
This is a list of Asian stock exchanges.
In the Asian region, there are multiple stock exchanges. As per data from World Federation of Exchanges, below are top 10 selected in 2020:
* Shanghai Stock Exchange, China
* Tokyo Stock Exchange, Japan ...
*
List of stock exchanges in the Commonwealth of Nations
This is a list of active stock exchanges in the Commonwealth of Nations (Full Members). The Commonwealth of Nations features member-states located on all major continents and represents almost one-third of the Earth's population. Some states ha ...
References
Notes
Citations
External links
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{{Coord, 18.9298, N, 72.8334, E, region:IN-MH, display=title, name=Bombay Stock Exchange
Financial services companies established in 1875
Stock exchanges in India
Financial services companies based in Mumbai
Indian companies established in 1875
Companies listed on the National Stock Exchange of India