Bombay Stock Exchange : BSE

History of Bombay Stock Exchange

Recognized as Asia's one of the oldest exchange market, Bombay Stock Exchange history can be traced down to 1850s when shareholders would congregate opposite Town Hall. The site of these gatherings altered many times due to the rapid increase in the number of stockbrokers. In due course of time, the crowd shifted to Dalal Street in 1874 and converted into an association identified as 'The Native Share & Stock Brokers Association' in 1875.

BSE was recognized as the foremost stock exchange by the Government of India in the year 1956 under Securities Contracts Regulation Act. The organization introduced BSE Sensex in the year 1986, facilitating to compute the general performance of the exchange. In 2000, BSE employed this alphabetical listing to make a foray into its derivatives market and buying and selling of Sensex futures agreements. The expansion of Sensex alternative besides equity derivatives trailed in the years 2001 and 2002.

BSE shifted from the traditional open-cry level selling exchange to electronic operating structure in 1995.

Profile of BSE

In the history of 135 years, Bombay Stock Exchange has assisted the expansion of Indian corporate industry by offering it with adequate fund raising platform from both national and international market.

At present, BSE is top most stock exchanges in the world in context of the number of firms cataloged under it. In context of number of business deals managed via its hi-tech trading set-up, BSE is the 5th most active in the globe. As per WFE 2009 Market Highlights, BSE is among the 10 major international exchanges in context of market investment of the firms registered under it. The total amount of investment dominated by the cataloged firms under BSE as on 31st March, 2010 was USD 1.36 Trillion.

Landmarks Achieved by BSE

Some of the landmarks achieved by the BSE are mentioned as under:

• The stock exchange procured Marketplace Technologies in the year 2009 to augment its domestic machinery expansion competence and to permit greater duration to trade for latest products.
• It introduced a treatment display place for company bonds recognized as Indian Corporate Debt Market(ICDM)
• BSE procured 15% venture in United Stock Exchange (USE) to trigger the expansion of the exchange and interest rate derivatives
• It introduced BSE Star Mutual Fund buying and selling platform to allow its associates to make use of the prevailing infrastructure for business deals in the sectoral plans.
• The stock exchange even provides a AMFI Authorization for Mutual Fund Consultants via BSE Training Institute (BTI)

BSE Indices

In an attempt to offer an enhanced demonstration of the expanding number of registered firms, bigger investments and new corporates, BSE introduced DOLLEX-200 and BSE-200 on 27th May, 1994. In the process it has achieved a lot in standardizing itself to the diverse requirements of the shareholders and market players.

In an attempt to satisfy the requirement of more extensive and industry specific indices, BSE has incessantly been triggering the assortment of its indices. Other indices launched which followed are; BSE-500 in 1999, BSE-PSU and BSE TECk in 2001. Later the unit altered all its indices to free-float technique.

BSE broadcasts data on the Value-Yielding Ratio, the Cost to Book Value Ratio and the Dividend Return Ratio on the basis of daily index transactions. The worth of all BSE indices is upgraded on statistical basis during transaction hours and is exhibited via its website, news cable intermediaries and BOLT set-up.

The indices are analyzed sporadically by the BSE Index Committee which comprises renowned autonomous finance experts who draw the comprehensive policy rules for the expansion and sustenance of the indices.

Why list a firm in BSE?

Mentioned below are some of the advantages of listing a firm in Bombay Stock Exchange (BSE):

• Registering in BSE offers a chance to the industrialists to raise fund for new ventures or acquisition or growth.
• Registering in BSE also offers and an exit itinerary to shareholders who are interested in investing in private equity.
• Registering in BSE assisting in raising an autonomous assessment of the firm to the market.
• Registering in BSE increases a firm's public portfolio with clients, dealers, shareholders, media, etc.
• Registering in BSE increases a firm's competence to raise more funds via preferential subscription, copyright issues, GDRs, etc. In the sue course, the method draws an extensive unit of professional shareholders.
• Registering in BSE offers enduring liquidity to the investors of the registered unit, which further helps in expanding its investor's base.

Contact Details

Bombay Stock Exchange Limited
Phiroze Jeejeebhoy Towers
Daumbai- 400001
Ph: 91-22-22721233/4
Fax: 91-22-22721919
E-mail: [email protected] (For fiscal results)
Fax Nos.: For Limited Review - 022 2272 2037
Corporate declarations - 022 2272 2039
Corporate Governance - 022 2272 2041

Last Updated on 2^ed July 2011

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