Bombay Stock Exchange (BSE), now known as 'BSE Limited', is the oldest stock exchange in the entire Asia. It is located in the Phiroze Jeejeebhoy Towers, Dalal Street in Fort and has the largest number of companies of the world listed on it. As of December 2011, the equity market capitalization of the listed companies was estimated at US$1 trillion, which made it the fourteenth largest stock exchange of the world. As per March 2012, there are more than 5,133 Indian companies listed in the stock exchange market. The BSE Sensex, which is otherwise known as 'BSE 30', is the most commonly used term while referring to the trading volume in India and Asia. When compared with NSE (National Stock Exchange), BSI has quite similar statistics interms of total market capitalization but in terms of share volume, NSE is almost twice of BSE. In order to find out more about the Bombay Stock Exchange, scroll further and read more.
History & Figures
History Of Bombay Stock Exchange
The history of BSE can be traced back to 1850s when a group of five stock brokers used to conduct meetings under the banyan tree in front of Mumbai Town Hall. As the number of the brokers increased, they started changing the venue of the meeting constantly. Almost two decades later, this small group moved to the Dalal Street in 1874, and later, in the following year, it was recognized as an official organization by the name 'The Native Share & Stock Brokers Association'. As per the Securities Contracts Regulation Act, BSE became the first stock exchange to be recognized by the Government of India in 1956. BSE Sensex was developed in 1986 which was considered a tool to measure the overall performance of the Bombay Stock Exchange. Using this index, various equity derivative markets were open and many future trading contracts were made in 2000 which further led to expansion of its trading platform. BSE switched to electronic trading system in 1995 and took only fifty days for this transition. 'BOLT' or the 'BSE On Line Trading' is the automated version of the trading platform, which is screen based and currently has a capacity of 8 million orders per day. Also, BSE is the first stock exchange in the world to introduce centralized internet trading system (BSEWEBx.co.in), allowing investors from all over the world to trade on the BSE platform.
Capital Market Of India
Currently, the Bombay Stock Exchange is decentralized and the managing teams of the exchanges comprise a panel of directors. The board members of this trading company include various representatives of trading organizations and also other professionals headed by a Managing Director at the topmost position. This committee takes part in the formation of policies, guidelines and programs to control the entire process of the exchange. There are 417 cities and several towns of India that lie within the fold of the Bombay Stock Exchange. BSE experienced a phenomenal growth during the year FY04-05 and it turned out to be a fruitful time for the exchange.
Major Companies In BSE:
Although there are numerous trading exchanges in the country, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) deal with a majority of equity trading in India. Read further the history and figures of BSE.
Bombay Stock Exchange
|Location:||Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai|
|Highlights:||BSE is the largest stock exchange in India and Asia as well. BSE Sensex is calculated out of 30 stocks on daily basis.|
- Bharat Heavy Electricals
- Bharat Petroleum
- Birla Corporation
- HDFC Bank
- Hindustan Motors
- ICICI Bank
- Infosys Technologies Limited
- State Bank of India
- Tata Motors
- Wipro Technologies
Mumbai is said to be the financial capital of India and BSE is the beating heart of Mumbai. Needless to say, BSE is a crucial financial organisation and plays a very vital role in the economy of India.