Bombay Stock Exchange

Stock Exchange
मुंबई शेअर बाजार

The Phiroze Jeejeebhoy Towers has housed the Bombay Stock Exchange since 1980.
Type Stock exchange
Location Mumbai, Maharashtra, India
Coordinates18°55′47″N 72°50′01″E / 18.929681°N 72.833589°E
Founded1875
OwnerBSE Limited
Key peopleAshishkumar Chauhan (MD & CEO)
CurrencyIndian rupee (INR)
No. of listings5,459[1]
Market capUS$ 1.7 trillion (23 Jan 2015)[1]
VolumeUS$ 93 billion (June 2014)[1]
IndexesBSE SENSEX
BSE Small Cap
BSE Mid-Cap
BSE 500
Websitewww.bseindia.com

Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Kala Ghoda, Mumbai, Maharashtra, India. Established in 1875 and is considered to be one of Asia’s fastest stock exchanges, with a speed of 200 microseconds and one of India’s leading exchange groups and the oldest stock exchange in the South Asia region. Bombay Stock Exchange is the world's 10th largest stock market by market capitalization at $1.7 trillion as of 23 January 2015.[2] More than 5,000 companies are listed on BSE.

History

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to 1855, when four Gujarati and one Parsi stockbroker would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as "The Native Share & Stock Brokers Association".

On 31 August 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 BSE SENSEX index, giving the BSE a means to measure overall performance of the exchange. In 2000, the BSE used this index to open its derivatives market, trading SENSEX futures contracts. The development of SENSEX options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform.

Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system developed by CMC Ltd in 1995. It took the exchange only fifty 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 has also introduced a centralized exchange-based internet trading system, BSEWEBx.co.in to enable investors anywhere in the world to trade on the BSE platform.[3]

The BSE is also a Partner Exchange of the United Nations Sustainable Stock Exchange initiative, joining in September 2012.[4]

Timeline

Following is the timeline of the BSE.

1996 To 2000

2001 To 2005

2011 To 2014

2015

Hours of operation

Session Timing
Pre-open Trading Session 09:00 - 09:15
Trading Session 09:30 - 15:30
Position Transfer Session 17:05 - 17:15
Closing Session 17:05 - 17:55
Option Exercise Session 17:07

The hours of operation for the BSE quoted above are stated in terms of the local time (GMT + 5:30). BSE's normal trading sessions are on all days of the week except Saturday, Sundays and holidays declared by the Exchange in advance.[7]

Indices

Graph of S&P BSE SENSEX monthly data from January 1991 to May 2013

The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major stock exchanges in India - Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE National Index was renamed BSE-100 Index from 14 October 1996 and, since then, its calculations take into consideration only the prices of stocks listed at BSE.

BSE launched the dollar-linked version of BSE-100 index on 22 May 2006, the "BSE-200" and the "DOLLEX-200" on 27 May 1994, the BSE-500 Index and 5 sectoral indices in 1999, and the BSE-PSU Index, DOLLEX-300, and the BSE TECk Index (the country's first free-float based index) in 2001. Over the years, BSE shifted all its indices to the free-float methodology (except BSE-PSU index).

BSE disseminates information on the Price-Earnings Ratio, the Price to Book Value Ratio, and the Dividend Yield Percentage of all its major indices on day-to-day basis. The values of all BSE indices are updated on a real time basis during market hours and displayed through the BOLT system, the BSE website, and news wire agencies. All BSE Indices are reviewed periodically by the BSE Index Committee. This Committee, which comprises eminent independent finance professionals, frames the broad policy guidelines for the development and maintenance of all BSE indices. The BSE Index Cell carries out the day-to-day maintenance of all indices and conducts research on development of new indices.[8]

SENSEX is significantly correlated with the stock indices of other emerging markets.[9][10]

Awards

BSE has won several awards and recognitions.

1993 Bombay bombings at BSE

On Friday, 12 March 1993 at 1:30 p.m. a powerful car bomb exploded in the basement of the Bombay Stock Exchange building. The 28-storey office building housing the exchange was severely damaged, and many nearby office buildings also suffered some damage. About 50 people were killed by this explosion.[12]

See also

References

External links

Wikimedia Commons has media related to Bombay Stock Exchange.

Coordinates: 18°55′47″N 72°50′01″E / 18.929681°N 72.833589°E