Bombay stock Exchange or BSE | BSE Sensex, Index, history, BSE Academy

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Phiroze Jeejeebhoy Towers, Dalal StreetMumbai-400001, Maharashtra, India, established on 9th July in 1875, the BSE (formerly known as Bombay Stock Exchange Ltd.)  is Asia's first stock exchange. The BSE is the *world's 10th largest stock exchange with an overall market capitalization of more than $4.9 trillion on as of April 2018.

The number of listed companies are 5066+  and current market capitalization is ₹150,184.87 billion (US$ 2.1 trillion) as on April 2018.

BSE Contacts :

Phones :         91-22-22721233/4, 91-22-66545695 (Hunting),
Fax :               91-22-22721919,
CIN:                L67120MH2005PLC155188,
Website:        www.bseindia.com

BSE History

Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia. Its history dates back to 1855, when five stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. Here  Premchand Roychand (named Cotton king/ bullion king/ Big bull), was an influential businessman in 19th century, Bombay, India, took major steps to build a group of investors to operate investment and trading. Episodically, For this purposes, the location of meetings changed many times to accommodate an increasing number of brokers. The group eventually moved to Dalal Street in 1874 and in became an official organization known as "The Native Share & Stock Brokers Association" in 1875.
On August 31, 1957, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. In 1980, the exchange moved to the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area. In 1986, it developed the BSE SENSEX index, giving the BSE a means to measure the overall performance of the exchange. In 2000, the BSE used this index to open its derivatives market, trading SENSEX futures contracts. The development of SENSEX options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform.

Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system developed by CMC Ltd. in 1995. It took the exchange only 50 days to make this transition. This automated, screen-based trading platform called BSE On-Line Trading (BOLT) had a capacity of 8 million orders per day & also  has introduced a centralized exchange-based internet trading system.

BSE Indices:

Index                 Current Value (as on 18th April,2019)

S&P BSE SENSEX                                                      39140.28 INR

S&P BSE SENSEX 50                                                 12231.99 INR

S&P BSE SENSEX Next 50                                       33697.72  INR

S&P BSE 100                                                                11922.47 INR

S&P BSE Bharat 22 Index                                           3631.45  INR

S&P BSE MidCap                                                       15382.57 INR

S&P BSE SmallCap                                                      15021.2 INR

S&P BSE 200                                                                  4949.1 INR

S&P BSE 150 MidCap Index                                      4833.57 INR

S&P BSE 250 SmallCap Index                                     2297.2 INR

S&P BSE 250 LargeMidCap Index                           4668.65 INR

S&P BSE 400 MidSmallCap Index                           3765.09 INR

S&P BSE 500                                                             15421.87 INR

S&P BSE AllCap                                                         4401.87 INR

S&P BSE LargeCap                                                   4525.04 INR

S&P BSE SmallCap Select Index                              2552.22 INR

S&P BSE MidCap Select Index                                 6682.68 INR

S&P BSE 100 LargeCap TMC Index                       4305.03 INR

S&P BSE SENSEX Next 50 TMC                             6090.05 INR

S&P BSE LargeMidCap                                                 4725 INR

S&P BSE MidSmallCap                                            4050.56 INR

S&P BSE 250 LargeMidCap 65:35 Index                4747.48 INR

S&P BSE SENSEX 50 TMC                                      3982.87 INR

Listed Companies in BSE or BSE Index view

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BSE Market Safety 

A major objective of BSE is to promote and inculcate honorable and just practices of trade in securities transactions, and to discourage malpractices.

The surveillance function at BSE has assumed greater importance over the last few years. It has a dedicated Surveillance Department to keep a close, and a daily, watch on the price movement of Securities , detect market manipulations like price rigging, etc., monitor abnormal prices and volumes which are not consistent with normal trading pattern and monitor the Members' exposure levels to ensure that defaults do not occur. This Department, which is headed by a General Manager, reports directly to Managing Director.

As per the guidelines issued by SEBI, except for Securities on which derivative products are available and are part of indices on which derivative products are available, a daily Circuit Filter of 20% is applied on all Securities. Circuit filters ensures that the price of a Security cannot move upward or downward beyond the limit set for the day. BSE has imposed dummy circuit filters to avoid freak trade due to punching errors by the Trading Members.

The abnormal variation in the prices as well as the volumes of the Securities are scrutinized and appropriate actions are taken. The Securities which reach new high or new low and companies which have high trading volumes are watched closely. A special emphasis is laid on the newly listed Securities.

In case certain abnormalities are noticed, the circuit filters are reduced to make it difficult for the price manipulators to increase or push down the prices of a Security within a short period of time. BSE imposes special margins in Securities where it suspects an attempt to ramp up the prices by creating artificial volumes. BSE also transfers the Securities for trading and settlement to the trade-to-trade category which leads to giving/taking delivery of shares on a gross level and no intra-day/settlement netting off/squaring off facility is permitted. If abnormal movements continue despite the aforesaid measures, BSE suspends the trading in the Security.

Detailed investigations are conducted in cases where price manipulation is suspected and disciplinary action is taken against the concerned Members.

BSE has an On-line Real Time (OLRT) Surveillance System, which has been in operation since July 15, 1999. Under this system, alerts are generated on-line, in real time during the trading hours, based on certain preset parameters like the price and volume variation in Securities, a Member taking unduly large positions not commensurate with their financial position or having concentrated positions in one or more Securities.

This system integrates several databases like company profiles, Members' profiles and historical data of turnover and price movement in Securities, Members' turnovers, their pay-in obligations, etc.

BSE Institute Ltd (BIL)

India has a diversified financial sector and with new entities entering into the markets it is undergoing rapid expansion. The highly competitive environment puts emphasis on continuous upgradation and learning and that’s what is offered here, at BSE Institute Limited.

BSE Institute Limited is a wholly owned subsidiary of Asia’s first and world’s fastest stock exchange- Bombay Stock Exchange (BSE). It is a leading financial center which aims at helping students understand mechanism that make financial institution important for the economy. As a financial institution, BSE Institute Ltd (BIL) are determined to hone the financial literacy of the youth. Also, it is a very well-known fact that the institute is pioneer in inspiring and providing memorable and immersive learning which is not hemmed only to BIL students. The institute conduct numerous seminars, workshops and study visits for the students across the world, updates of which can be easily seen on the Facebook page of BSE Institute. The faculty at BIL are professionals and experts in their field and it is their unique and interesting way of teaching that makes every class interactive and engaging.

BSE Courses

BSE Institute Ltd offers ideal courses for---

1) Students 
2) Finance executives 
3) Finance professionals 
4) General investors 
5) Corporates 
6) International audiences…

Other major stock exchanges world-wide:

1. New York Stock Exchange (NYSE) at  New york City, USA.

2. NASDAQ at New york City, USA.

3. Japan Exchange Group at Tokyo, Japan.  

4. Shanghai Stock Exchange at Shanghai, China.

5. Hong Kong Stock Exchange at Hong Kong, China.

6. Euronext at European Union (Amsterdam, Brussels, Dublin, Lisbon, Paris)

7. London Stock Exchange Group at London, Milan, United Kingdom.

8. Shenzhen Stock Exchange at Shenzhen, China.

9. TMX Group at Toronto, Canada.

10. *Bombay Stock Exchange (BSE) at Mumbai, India.

11. National Stock Exchange (NSE) of India at Mumbai, India.

12. Deutsche Börse at Frankfurt, Germany. 

13. SIX Swiss Exchange at Zurich, Switzerland.

14. Korea Exchange at SeoulBusan, South Korea.

15. Nasdaq Nordic Exchanges at Copenhagen, Stockholm, Helsinki, Tallinn, Riga, Vilnius, Iceland, Armenia.
16. Australian Securities Exchange at Sydney, Australia.

17. Taiwan Stock Exchange at Taipei, Taiwan.

18. B3 at São Paulo, Brazil.

19. JSE Limited at Johannesburg, South Africa.

20. Bolsas y Mercados Españoles at Madrid, Spain.

Importance of Stock Exchange :

Stock market is an important part of the economy of a country. The stock market plays a play a pivotal role in the growth of the industry and commerce of the country that eventually affects the economy of the country to a great extent. That is reason that the government, industry and even the central banks of the country keep a close watch on the happenings of the stock market. The stock market is important from both the industry’s point of view as well as the investor’s point of view.
Whenever a company wants to raise funds for further expansion or settling up a new business venture, they have to either take a loan from a financial organization or they have to issue shares through the stock market. In fact the stock market is the primary source for any company to raise funds for business expansions. If a company wants to raise some capital for the business it can issue shares of the company that is basically part ownership of the company. To issue shares for the investors to invest in the stocks a company needs to get listed to a stocks exchange and through the primary market of the stock exchange they can issue the shares and get the funds for business requirements. There are certain rules and regulations for getting listed at a stock exchange and they need to fulfill some criteria to issue stocks and go public. The stock market is primarily the place where these companies get listed to issue the shares and raise the fund. In case of an already listed public company, they issue more shares to the market for collecting more funds for business expansion. For the companies which are going public for the first time, they need to start with the Initial Public Offering or the IPO. In both the cases these companies have to go through the stock market.
This is the primary function of the stock exchange and thus they play the most important role of supporting the growth of the industry and commerce in the country. That is the reason that a rising stock market is the sign of a developing industrial sector and a growing economy of the country.

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