Established in 1875, BSE Ltd. is one of Asia’s fastest stock exchanges, with a speed of 200
microseconds and one of India’s leading exchange groups. BSE is a corporatized and
demutualised entity, with a broad shareholder-base that includes two leading global exchanges,
Deutsche Bourse and Singapore Exchange, as strategic partners. BSE provides an efficient
and transparent market for trading in equity, debt instruments, derivatives, and mutual
funds. It also has a platform for trading in equities of small-and-medium enterprises.
Over the past 139 years, BSE has facilitated the growth of the Indian corporate sector
by providing an efficient capital-raising platform.
More than 5000 companies are listed on BSE, making it the world's top exchange in terms
of listed members. The companies listed on BSE Ltd. command a total market capitalization
of USD 1.51 Trillion as of May 2014. It is also one of the world’s leading exchanges
for Index options trading. BSE also provides a host of other services
to capital market participants, including risk management, clearing, settlement, market
data services, and education. It has a global reach with customers around the world and
a nation-wide presence. BSE systems and processes are designed to safeguard market integrity,
drive the growth of the Indian capital market, and stimulate innovation and competition across
all market segments. BSE is the first exchange in India and the second in the world to obtain
an ISO 9001:2000 certification and the Information Security Management System Standard BS 7799-2-2002
certification for its On-Line trading System. It operates one of the most respected capital
market educational institutes in the country. BSE also provides depository services through
its Central Depository Services Ltd. arm. BSE’s popular equity index - the S&P BSE
SENSEX - is India's most widely tracked stock market benchmark index. It is traded internationally
on the EUREX as well as leading exchanges of the BRCS nations. BSE has won several awards
and recognitions that acknowledge its work and progress, like India Innovation Award
for the Big Data implementation, ICICI Lombard and ET Now Risk Management BFSI Company 2013,
SKOCH Order of Merit Certificate, The Golden Peacock Global CSR Award, NASSCOM - CNBC-TV18’s
IT User Awards, 2010 in Financial Services category, Skoch Virtual Corporation 2010 Award
in the BSE StAR MF category, and Responsibility Award by the World Council of Corporate Governance.
Its recent milestones include the launching of BRICSMART indices derivatives, BSE-SME
Exchange platform, S&P BSE GREENEX to promote investments in Green India.
BSE’s popular equity index - the S&P BSE SENSEX - is India's most widely tracked stock
market benchmark index. It is traded internationally on the EUREX as well as leading exchanges
of the BRCS nations. On Tuesday, 19 February 2013 BSE has entered into Strategic Partnership
with S&P DOW JONES INDICES and the SENSEX has been renamed as "S&P BSE SENSEX".
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 had a capacity of 8 million orders per day. The BSE has also introduced the world's
first centralized exchange-based internet trading system, BSEWEBx.co.in to enable investors
anywhere in the world to trade on the BSE platform.
Timeline Following is the timeline of the BSE.
1830 to 1875 1830's Business on corporate stocks and Share
in Bank and Cotton presses started in Bombay. 1860-1865 Cotton price bubble as a result
of the American Civil War. 1870 - 90's Sharp increase in Share prices
of jute industries followed by a boom in tea stocks and coal.
1875 To 1995 9 July 1875 The Native Share & Stock Broker's
Association formed 2 February 1921 Clearing House started by
Bank of India 31 August 1957 BSE granted permanent recognition
under Securities Contracts Act 2 January 1986 SENSEX, country's first equity
index launched 10 July 1987 Investor's Protection Fund introduced
3 January 1989 BSE Training Institute inaugurated 25 July 1990 SENSEX closes above 1000
15 January 1992 SENSEX closes above 2000 30 March 1992 SENSEX closes above 4000
1 May 1992 SEBI Act established 29 May 1992 Capital Issues Act repealed
1992 Securities Appellate Tribunal established 14 March 1995 BSE On-Line Trading system introduced
1996 To 2000 19 August 1996 First major SENSEX revamp*
22 March 1999 Central Depository Services Limited set up with other financial institutions
1 June 1999 Interest rate swaps / Forward Rate Agreements allowed
15 July 1999 CDSL commences work 11 October 1999 SENSEX closed above 5000
11 February 2000 SENSEX crosses 6000 intra-day 9 June 2000 Equity Derivatives introduced
2001 To 2005 1 March 2001 Corporatisation of Exchanges
proposed by the Union Govt. 1 February 2001 BSE Webx Launched
1 June 2001 Index Options launched 4 June 2001 BSE PSU index introduced
15 June 2001 WDM operations at commenced 2 July 2001 VaR model introduced for margin
requirement calculation 9 July 2001 Stock options launched
11 July 2001 BSE Teck launched, India’s First free float index
25 July 2001 Dollex 30 launched 1 November 2001 Stock futures launched
29 November 2001 100% book building allowed 31 December 2001 All securities clearing move
to T+5 1 February 2002 Two way fungibility for ADR/GDR
15 February 2002 Negotiated Dealing System established
1 April 2002 T+3 settlement Introduced 1 January 2003 India’s first ETF on SENSEX
- ‘SPICE' introduced 16 January 2003 Retail trading in G Sec
1 April 2003 T+2 settlement Introduced 1 June 2003 Bankex launched
1 September 2003 SENSEX shifted to free-float methodology
1 December 2003 T group launched 2 June 2004 SENSEX closes over 6000 for the
first time 17 May 2004 Second biggest fall of all time,
Circuit filters used twice in a day announced by SEBI
20 May 2005 The BSE Scheme, 2005 8 August 2005 Incorporation of Bombay Stock
Exchange Limited 12 August 2005 Certificate of Commencement
of Business 19 August 2005 BSE becomes a Corporate Entity
2006 To 2010 7 February 2006 SENSEX closed above 10000
7 July 2006 BSE Gujarati website launched 21 October 2006 BSE Hindi website launched
2 November 2006 ishares BSE SENSEX India Tracker listed at Hong Kong Stock Exchange
2 January 2007 Launch of Unified Corporate Bond Reporting platform: Indian Corporate
Debt Market 7 March 2007 Singapore Exchange Limited entered
into an agreement to invest in a 5% stake in BSE
16 May 2007 Appointed Date under the Scheme i.e. Date on which Corporatisaton and Demutualisation
was achieved. Notified by SEBI in the Official Gazette on 29.06.2007
10 January 2008 SENSEX All-time high 21206.77 1 October 2008 Currency Derivatives Introduced
18 May 2009 The SENSEX raised 2110.70 points and Index-wide upper circuit breaker applied
7 August 2009 BSE - USE Form Alliance to Develop Currency & Interest Rate
24 August 2009 BSE IPO Index launched 1 October 2009 Bombay Stock Exchange introduces
trade details facility for the Investors 5 October 2009 BSE Introduces New Transaction
Fee Structure for Cash Equity Segment 25 November 2009 BSE launches FASTRADE™
- a new market access platform 4 December 2009 BSE Launches BSE StAR MF – Mutual
Fund trading platform 7 December 2009 Launch of clearing and settlement
of Corporate Bonds through Indian Clearing Corporation Ltd.
14 December 2009 Marathi website launched 18 December 2009 BSE's new derivatives rates
to lower transaction costs for all 4 January 2010 Market time changed to 9.0
a.m. - 3.30 p.m. 20 January 2010 BSE PSU website launched
22 April 2010 New DBM framework @ Rs.10 lakhs - 90% reduction in Membership Deposit
12 May 2010 Dissemination of Corporate Action information via SWIFT platform
23 July 2010 Options on BOLT 21 September 2010 First to introduce Mobile-based
Trading 29 September 2010 Introduction of Smart Order
Routing 4 October 2010 EUREX - SENSEX Futures launch
11 October 2010 Launch of Fastrade on Web - Exchange hosted platform
5 November 2010 SENSEX closes above 21,000 for the first time
12 November 2010 Commencement of Volatility Index
22 November 2010 Launch of SLB 10 December 2010 Launch of SIP
27 December 2010 Commencement of Shariah Index 2011 To 2014
17 November 2011 Maharashtra and United Kingdom Environment Ministers launched Concept Note
for BSE Carbon Index 30 December 2011, picks up a stake in the
proxy advisory firm, Institutional Investor Advisory Services India Limited
7 January 2011 BSE Training Institute Ltd. with IGNOU launched India's first 2 year full-time
MBA programme specialising in Financial Market 15 January 2011 Co-location facility at BSE
- tie up with Netmagic.com 22 February 2012 Launch of BSE-GREENEX to
promote investments in Green India 13 March 2012 Launch of BSE - SME Exchange
Platform 30 March 2012 BSE launched trading in BRICSMART
indices derivatives 19 February 2013 - SENSEX becomes S&P SENSEX
as BSE ties up with Standard and Poor's to use the S&P brand for Sensex and other indices.
28 November 2013 Launch of Currency Derivatives 28 January 2014 Launch of Interest Rate Futures
11 Feb 2014 Launch of Institutional Trading Platform on BSE SME
07 Apr 2014 Launch of Equity Segment on BOLT Plus with Median Response Time of 200
Hours of operation The hours of operation for the BSE quoted
above are stated in terms of the local time. BSE's normal trading sessions are on all days
of the week except Saturday, Sundays and holidays declared by the Exchange in advance.
Indices
The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE
National Index. 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 in 2001. Over the years, BSE shifted all its indices to the free-float methodology.
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.
SENSEX is significantly correlated with the stock indices of other emerging markets.
Awards The World Council of Corporate Governance
has awarded the Golden Peacock Global CSR Award for BSE's initiatives in Corporate Social
Responsibility. The Annual Reports and Accounts of BSE for
the year ended 31 March 2006 and 31 March 2007 have been awarded the ICAI awards for
excellence in financial reporting. The BSE has been cited as one of the world's
best performing stock market by Reuters. The Human Resource Management at BSE has won
the Asia - Pacific HRM awards for its efforts in employer branding through talent management
at work, health management at work and excellence in HR through technology.
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-story office
building housing the exchange was severely damaged, and many nearby office buildings
also suffered some damage. About 50 were killed by this explosion.
See also Calcutta Stock Exchange
Phiroze Jeejeebhoy Towers Clause 49
National Stock Exchange of India Companies listed on the Bombay Stock Exchange
List of South Asian stock exchanges References
External links Media related to Bombay Stock Exchange at
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