A Brief Overview of BSE

When you start trading in the stock market, one aspect that is a must-to-know about is the Bombay Stock Exchange. A very interesting feature about it is that it is the oldest stock exchange in the Asian continent. It was set up more than a century ago in 1875, and at that time, it was called the Native Share & Stock Brokers Association. Before it was set-up, brokers and traders would come together under a banyan tree to carry out their transactions. After it was established, it eliminated such informal gatherings for stock investment and started to formalize it.

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What You Should Know About The Bombay Stock Exchange And How It Functions

The Bombay Stock Exchange is the first listed stock exchange in the country. An important feature about it is that its systems and processes are designed to keep the market integrity and enhance transparency in activities. The BSE is the most important stock exchange in the country, next to the NSE. In the world, it stands as the eleventh biggest stock exchange and across the country, its presence reaches out to 417 cities and towns.

It was in 1957 that it became recognized as an exchange under the Securities Contracts (Regulation) Act. It was in 1986 that the Sensex or Sensitive Index of the exchange was launched. The automated trading platform of the exchange was initiated in 1995, and it was called as the BSE On-Line Trading System (BOLT). With the setup of this system, the open outcry system was no longer in use. This system has received the Information Security Management System Standard BS 7799-2-2002 certification.

The Bombay Stock Exchange provides the platform across the country for trading in securities. It processes are systematic, efficient and transparent. It is also ISO 9001-2000 certified. It has introduced the, which is its internet base trading system, through which investors from any part of the country and the world can trade on the exchange’s platform. In 2012 it joined the United Nations Sustainable Stock Exchange Initiative. It is in 2016 that a striking element was introduced which is the INX or India international exchange. It is a busy place, and every day a huge amount of trading happens on an hourly basis. As of 2017, the value of all stocks that were traded in the BSE is more than 2 trillion. More than 5500 companies are publicly listed on it.

It is due to the Bombay Stock Exchange that the corporate sector of the country has grown. They list their shares here which are bought and sold every day, enabling companies to grow and provide for the public through their stocks which are traded on the exchange. It has also served as a very efficient platform for raising capital. Not only is it the platform for trading in debt instruments, mutual funds, derivatives, etc., it is also space through which equity trading happens or small and medium enterprises. It’s Central Depository Services Ltd. (CDSL) wing offers depository services, and it also operates the BSE Institute Ltd, which is a leading capital market educational institute.

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