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BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian
Bombay Stock Exchange was founded by Premchand Roychand in 1875. While BSE Limited is now synonymous with Dalal Street, it was not always so. In the 1850s, four Gujarati and one Parsi stockbroker gathered together under a Banyan 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 INX) on 30 December 2016. India INX, based out of GIFT City, 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 and corporatized on 19 May 2007, pursuant to the ''BSE (Corporatization and Demutualization) Scheme, 2005'' notified by SEBI. It was listed on NSE on 3 February 2017.
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, 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, it was not always so. In the 1850s, four Gujarati and one Parsi stockbroker gathered together under a Banyan 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 INX) on 30 December 2016. India INX, based out of GIFT City, 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 and corporatized on 19 May 2007, pursuant to the ''BSE (Corporatization and Demutualization) Scheme, 2005'' notified by SEBI. 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 (SEBI) has barred several individuals and entities from trading on the exchanges for insider trading,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 mid-caps, small-caps and penny stocks.
The Indian stock exchanges BSE and NSE have witnessed several high-profile corruption scandals. At times, the Securities and Exchange Board of India (SEBI) has barred several individuals and entities from trading on the exchanges for insider trading, 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 mid-caps, small-caps and penny stocks.
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 is "BSE".See also
*Economy of India
The economy of India is a Developing country, developing mixed economy with a notable public sector in strategic sectors.
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* It is the world's fourth-largest economy by gross domestic product, nominal GDP and the third-largest by purch ...
* Economy of Maharashtra
* List of stock exchanges
A list is a set of discrete items of information collected and set forth in some format for utility, entertainment, or other purposes. A list may be memorialized in any number of ways, including existing only in the mind of the list-maker, but ...
* National Stock Exchange of India
* NSE co-location scam
* Stock market crashes in India
* Mutual funds in India
* Muhurat trading
* Clause 49
* Securities and Exchange Board of India
References
Notes
Citations
Further reading
* * * * * * * Razdan, A. Scaling in the bombay stock exchange index. Pramana - J Phys 58, 537–544 (2002). * Goel, A., Tripathi, V. and Agarwal, M. (2021), "Market microstructure: a comparative study of Bombay stock exchange and national stock exchange", Journal of Advances in Management Research, Vol. 18 No. 3, pp. 414–442. * Krishnamurti, Chandrasekhar and Eleswarapu, Venkat R., Liquidity, Stock Returns and Ownership Structure - An Empirical Study of the Bombay Stock Exchange (March 31, 1994). IIM Bangalore Research Paper No. 65, Available at or * Sumon Kumar Bhaumik. “Stock Index Futures in India: Does the Market Justify Its Use?”Economic and Political Weekly
The ''Economic and Political Weekly'' (EPW) is a weekly peer-reviewed academic journal covering all social sciences, and is published by the Sameeksha Trust. In January 2018, academic Gopal Guru was named the new Editor of the journal. Guru will be ...
, vol. 32, no. 41, 1997, pp. 2608–11. . Retrieved 13 Feb. 2024.
* Ganeshaiah, K. N. “Has the Behaviour of the Stock Market Been Affected by the Scam? — A Statistical Analysis.” Current Science, vol. 63, no. 7, 1992, pp. 345–47. . Retrieved 13 Feb. 2024.
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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