BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for ...

based in

Mumbai Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12 ...

. It is the 6th largest stock exchange in the world by total

market capitalization Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by ...

, exceeding $5 trillion in May 2024. Established with the efforts of cotton merchant Premchand Roychand in 1875, it is the oldest stock exchange in Asia, and also the tenth oldest in the world.

History

Bombay Stock Exchange was founded by Premchand Roychand in 1875. While BSE Limited is now synonymous with

Dalal Street Dalal Street (), () is the metonym for the financial markets of India, the Indian financial services industry of the country as a whole, or the actual financial district itself. It is located in the Financial District of Fort in Mumbai and is ...

, it was not always so. In the 1850s, four Gujarati and one

Parsi The Parsis or Parsees () are a Zoroastrian ethnic group in the Indian subcontinent. They are descended from Persian refugees who migrated to the Indian subcontinent during and after the Arab-Islamic conquest of Iran in the 7th century, w ...

stockbroker gathered together under a

Banyan A banyan, also spelled banian ( ), is a fig that develops accessory trunks from adjacent prop roots, allowing the tree to spread outwards indefinitely. This distinguishes banyans from other trees with a strangler habit that begin life as ...

tree in front of Bombay (now Mumbai) Town Hall, where Horniman Circle is now situated. A decade later, the brokers moved their location to under the banyan trees at the junction of Meadows Street and what was then called Esplanade Road, now Mahatma Gandhi Road. With a rapid increase in the number of brokers, they had to shift places repeatedly. At last, in 1874, the brokers found a permanent location, the one that they could call their own. The brokers group became an official organization known as "The Native Share & Stock Brokers Association" in 1875. The BSE is also a Partner Exchange of the United Nations Sustainable Stock Exchange initiative, joining in September 2012. BSE established the

India International Exchange India International Exchange IFSC Limited, also known as the India International Exchange (India INX), is India's first international stock exchange. It was launched as a subsidiary of the Bombay Stock Exchange (BSE). It is located at the Inter ...

(India INX) on 30 December 2016. India INX, based out of

GIFT City Gujarat International Finance Tec-City also called GIFT City, is a central business district under construction in the Gandhinagar district as suburb city of Ahmedabad in Ahmedabad Metropolitan Region in Gujarat, India. It is India's first ope ...

, is the first international stock exchange of India. BSE became the first stock exchange in the country to launch commodity derivatives contract in gold and silver in October 2018. BSE was

demutualized Demutualization is the process by which a customer-owned mutual organization (''mutual'') or co-operative changes legal form to a joint stock company. It is sometimes called stocking or privatization. As part of the demutualization process, member ...

and corporatized on 19 May 2007, pursuant to the ''BSE (Corporatization and Demutualization) Scheme, 2005'' notified by

SEBI The Securities and Exchange Board of India (SEBI) is the regulatory body for securities and commodity market in India under the administrative domain of Ministry of Finance within the Government of India. It was established on 12 April 1988 a ...

. It was listed on NSE on 3 February 2017.

Criticism and controversies

The Indian stock exchanges BSE and NSE have witnessed several high-profile corruption scandals. At times, the

Securities and Exchange Board of India The Securities and Exchange Board of India (SEBI) is the Regulatory agency, regulatory body for securities and commodity market in India under the administrative domain of Ministry of Finance (India), Ministry of Finance within the Government ...

(SEBI) has barred several individuals and entities from trading on the exchanges for

insider trading Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider informati ...

stock manipulation In economics and finance, market manipulation occurs when someone intentionally alters the supply or demand of a security to influence its price. This can involve spreading misleading information, executing misleading trades, or manipulating ...

, especially in

illiquid In business, economics or investment, market liquidity is a market's feature whereby an individual or firm can quickly purchase or sell an asset without causing a drastic change in the asset's price. Liquidity involves the trade-off between the ...

mid-caps, small-caps and

penny stocks Penny stocks are common shares of small public companies that trade for less than five dollars per share. The U.S. Securities and Exchange Commission (SEC) uses the term "penny stock" to refer to a security, a financial instrument which represe ...

. The Indian stock exchanges BSE and NSE have witnessed several high-profile corruption scandals. At times, the

(SEBI) has barred several individuals and entities from trading on the exchanges for

, especially in

mid-caps, small-caps and

. In addition to these events, the BSE has also been criticised for its slow adoption of technological upgrades during the early 2000s, which allowed competitors like the NSE to dominate electronic trading. BSE faced scrutiny in 2013 when market participants raised concerns about preferential access to trading systems. While no direct regulatory action was taken at that time, the incident led to calls for increased transparency and better infrastructure upgrades in both exchanges. Further, in April 2022, SEBI imposed penalties on both BSE and NSE for their failure to act decisively in the Karvy Stock Broking scam, where client securities worth thousands of crores were misused. SEBI concluded that the exchanges were negligent in enforcing compliance norms and protecting investors' interests.

BSE Stock

BSE Limited (Bombay Stock Exchange) was listed on the National Stock Exchange of India on February 3, 2017 at a Face Value of ₹2 per share and Issue Price of ₹806 per share having a Total Issue Size of 1,54,27,197 shares. The company's NSE

ticker symbol A ticker symbol or stock symbol is an abbreviation used to uniquely identify publicly traded Share (finance), shares of a particular stock or Security (finance), security on a particular stock exchange. Ticker symbols are arrangements of symbols ...

is "BSE".

References

Notes

Citations

External links

* {{Coord, 18.9298, N, 72.8334, E, region:IN-MH, display=title, name=Bombay Stock Exchange Financial services companies established in 1875 Stock exchanges in India Financial services companies based in Mumbai Indian companies established in 1875 Companies listed on the National Stock Exchange of India 2017 initial public offerings