Introduction To The Bombay Stock Exchange
The Bombay Stock Exchange (BSE) is the oldest stock exchange in India and Asia. It was established in 1875 currently has a reach of 417 cities. The BSE is one of the two major stock exchanges in the Indian stock market, the second being the National Stock Exchange (NSE). The BSE has played an important role in giving India its best position in the international financial market.
Asia’s oldest and the country’s first stock exchange has got a permanent recognition under the Mumbai Stock Exchange Securities Contract Regulation Act of 1956. The BSE aims to “emerge as the premier Indian Stock Exchange by hoisting the flag of global fame.”
History Of BSE India
BSE was established in 1875 as the popular ‘Mumbai Stock Exchange’. This Exchange played a major role in the development of the Indian capital market and its index is world-renowned. The Exchange is governed by a Board of Directors headed by the Managing Director. The Board consists of eminent professionals, representatives of trading members and public representatives.
The Exchange is spread nationally with its presence in small and big cities of India. The system and process of MSE ensures the transparency and security of the market. Establishing global records and emerging as the topmost stock exchange, the Exchange has a rich heritage of illustrious history spanning more than 125 years.
Trading rights and ownership rights are different from each other in the Exchange. In such circumstances, special care is taken in the interests of investors. The Exchange ensures a structured and transparent trading system for trading Equity, Debt and Futures and Options. The online trading system of MSE is of excellent quality and is globally recognised by the Information Security Management System having BS 7799-2:2002 certificate status.
BS 7799 audit was done by DNV (Det Norske Veritas). The BSE is the only Exchange in India and second in the world to have received this certification. BS 7799 is an internationally accepted standard for information gathering, risk control and protection of technical systems and people’s property. The glorious grand history of this Exchange is more than 150 years old.
The Role Of The BSE In The Indian Capital Market
The events of the Indian capital market are very interesting. In terms of the number of listed firms and market value, BSE is massive. The Exchange has played the role of a leader in the Indian capital market. BSE has its own sets of rules and regulations for Indian capital market even before it became a de facto law. After India became independent, this Exchange established best practices for the Indian capital market.
There will be hardly any company in India that has not taken the services of BSE for capital creation. BSE is considered the symbol of capital market in India. The BSE Sensex is the benchmark equity index reflecting the country’s economy and financial market movements. The BSE has been a leader in many fields by being at par at the international level. In the era of intense competition, the BSE has added to its fame saga by playing a leading role in many sectors.
Key Factors Of BSE India
- India’s first Exchange to launch Equity Derivatives
- First Exchange in India to launch Free Plots Index
- First exchange in India to introduce US Dollar based Sensex
- Sensex (BSE 30) is the BSE market index consisting of 30 well established and financially sound companies listed on the Bombay Stock Exchange (BSE).
- First Exchange in India to set up Exchange-based Internet Trading Platform
- First Exchange in the country to get ISO certificate for Surveillance, Clearing and Settlement
- BSE Online Trading System (BOLT) to acquire globally recognized Information Security Management System standard BSE BS 7799-2-2002
- First exchange to set up separate special facility for financial training
- Switch from trading ring system to electronic trading in just 50 days
BSE Campaign To Attract Investors
As a part of other projects of similar importance, BSE India has launched a campaign for investor awareness across the country. For this, information, guidance and public awareness are propagated by making extensive use of print and electronic media. The BSE has played an active role in spreading the capital market awareness programs of the Securities and Exchange Board of India (SEBI).
The Stock Exchange, Mumbai was renamed as the BSE in 2002. he BSE introduced securities trading in India, replacing the traditional share buy/sell method of trading ring with BSE Online Trading (BOLT) through Automated Trading System in 1995. In 1997, this “Bolt” network spread all across India.
India’s first Bell Ringing Ceremony (celebration of share listing celebration with bell ringing) at the International Convention Hall of BSE began in 2002 with Bharti Televentures Ltd. on February 18, 2002. The first ceremony of share listing took place and today it has become the practice of the new modern era.
Conclusion
In this way, BSE India has always contributed significantly in the development of the capital market of the country and BSE remains well equipped in this direction.