The Bombay Stock Exchange
The Bombay Stock Exchange
the first in Asia, established in 1875. It is headquartered in Mumbai, India, and is one of the
largest stock exchanges globally in terms of market capitalization. BOMBAY STOCK
EXCHANGE (BSE) BSE is one of the oldest stock exchanges in Asia and was established in
the name of "The Native Share and Stock Brokers Association." 24 BSE is located at Dalal
Street, Mumbai, India. It got recognition in the year 1956 from the Government of India
under Securities Contracts (Regulation) Act, 1956. Presently BSE SENSEX is recognised
world-wide. Trading volumes have drawn the attention over the globe. BSE
Key Facts About BSE
Founded: 1875
Headquarters: Mumbai, India
Benchmark Index: S&P BSE Sensex (tracks the top 30 well-established and
financially sound companies listed on BSE)
Market Regulator: Securities and Exchange Board of India (SEBI)
Number of Listed Companies: Over 5,000 (one of the highest in the world)
Trading Platform: BOLT (BSE Online Trading System)
Derivatives Trading: Includes stock options, index options, and futures
Currency and Commodity Trading: Also available through BSE
Functions of BSE
1. Facilitates Stock Trading: Provides a platform for buying and selling securities.
2. Ensures Transparency: Regulated by SEBI to maintain fair trading practices.
3. Enables Capital Raising: Helps companies raise funds through IPOs and bonds.
4. Provides Indices: BSE Sensex and other sectoral indices help investors track market
trends.
5. Investor Protection: Ensures compliance with market regulations.
BSE Indices
The well known index is BSE SENSEX. Others include BSE 500, BSEPSU, BSEMIDCAP,
BSEMLCAP and BSEBANKEX.
BSE 100 Index: The equity share of 100 companies from the list of 5 major stock exchanges
such as Mumbai, Calcutta, Delhi, Ahmedabad and Madras are selected for the purpose of
compiling the BSE National Index. The year 1983-84 is taken as the base year for this index.
The method of compilation here is same as that of the BSE SENSEX.
BSE 200 Index: The BSE 200 Index was launched on 27th May 1994. The companies under
BSE 200 have been selected on the basis of their market capitalisation, volumes of turnover
and other fundamental factors. The financial year 1989-90 has been selected as the base year.
BSE 500 Index: BSE 500 Index consisting of 500 scrips is functioning since 1999. Presently
BSE 500 Index represents more than 90% of the total market capitalisation on Bombay
Stock Exchange Limited. BSE PSU Index: BSE PSU Index has been working since 4th June
2001. This index includes major Public Sector Undertakings listed in the Exchange. The BSE
PSU Index tracks the performance of listed PSU stocks in the exchange.