It was the year 1875, in the 19th century.

India was still a colony under the rule of the British. The Indian ‘grand old party’ was not yet formed!! The father of the nation was just a six years old kid.

It was in this year that a group of brokers in Bombay (present day Mumbai), formed the Native Share and Stock Brokers Association which is now referred to as the BSE (Bombay Stock Exchange).

Back then, before the association was formed, the brokers would gather under banyan trees to conduct their trading affairs. As the number of brokers kept on increasing they kept shifting to bigger location and eventually the brokers found a permanent location of their own which was called the Dalal Street (Broker’s Street).

BSE was also one of the locations, from where the infamous 1993 Mumbai serial bomb blasts triggered.

Today in India, in addition to BSE, NSE (National Stock Exchange of India Ltd.) is also another premier stock exchange. Besides, there are other 4 stock exchanges and 9 Commodity Derivative Exchanges registered with SEBI. There were also other 18 stock exchanges which have now become defunct.

Anyone, with the applicable net worth, be it whether an individual, corporate, partnership firms or limited liability partnership, can become a stock broker or sub broker with the BSE.

BSE uses a fully automated online system known as the BOLT (BSE Online Trading) Plus. The brokers can enter the order for buying or selling from their own place.

Trading takes place from Monday to Friday between 9:00AM to 3:30PM. The time from 9:00AM to 9:15AM is for the pre-open session. This pre-open session is further divided into smaller intervals, known as the order entry period, order matching period and buffer period. From 9:15AM upto 3:30PM is the period for continuous trading.

There are 5075 companies listed on the BSE. But, in many of these companies, there is no active trading taking place.

The S&P BSE SENSEX (SENSitivity indEX) is one of the most tracked indices from India. It track’s the relative average change in prices of the 30 largest, most liquid and financially sound companies across key sectors of the Indian economy. Besides you also have other S&P BSE indices used to track some other considerations.

BSE is a marketplace for trading in shares of large, medium and small capital companies. Besides, it also provides a platform for trading in currencies, debt instruments, futures, options, interest rates, equities, mutual funds, sovereign gold bonds.

BSE has also set up, it’s fully owned subsidiary named ‘India INX’ (India International Exchange). It is India’s first international exchange, set up at the IFSC, in GIFT city, Gujarat. This exchange, in a day, operates for 22 hours, thus allowing international investors and NRIs (non-resident Indian) to trade from anyplace across the world.

Last year, BSE became the first stock exchange in India to get listed. It is now listed on the NSE.

So now, you can go ahead, buy a share of BSE and consider yourself as a share owner of the Bombay Stock Exchange!!




Also Read: The Public Provident Fund Scheme


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