Know the Major Points about BSE

Bombay Stock Exchange

Stock trading is a highly competitive and fast-moving segment of the Indian economic domain and it is very important that as a trader or even at the beginner’s level, due care is taken to ensure that there is full compliance with the laid down rules and regulations. To ascertain the kind of trading options that best suit your specific needs and requirements, adopting the best possible strategy is important. This is where the importance of data, stock information, pricing information etc. comes in. In simple terms, access to the trade market and stock trading exchanges is what counts in the first place. BSE or the erstwhile Bombay Stock Exchange was established in the year 1875 and is famed for being Asia’s oldest stock exchange. Set up in the most humble of manners, BSE is the world’s 10th largest stock exchange.

It was set up by a group of stockbrokers who had been earlier carrying out their activities under banyan trees. In 1874, when the number of stockbrokers started increasing rapidly, this group collectively took up permanent quarters at what is now referred to as “Dalal Street” i.e. “Broker’s Street”, in Mumbai. After independence, BSE was the first stock exchange to be given recognition by the government of India in August 1957. By 1986, the Sensex was formulated to check and evaluate the performance of the stock exchange. In 1995, BSE shifted the traditional way of operating to a new, electronic method.

In 2014, Interest Rate Futures was launched and also institutional trading platform was launched on BSE in the same year. BSE was the first stock exchange in India to launch a free-float index and was also the first stock exchange in India to introduce equity derivatives. The structure of BSE has been layered in such a manner that makes the whole system of management more transparent and deputation oriented in day to day activities.

BSE constituent structure:

  1. 9 active directors, who constitute the Board of Directors.
  2. Directors with executive powers.
  3. 5 representatives from the general public
  4. One member nominated by the Reserve Bank of India (RBI)
  5. 3 members nominated by the government.

Today, BSE has the largest number of listed companies in the world and the number is more than five thousand. Although the volume of share trading is quite less, the listing of companies speaks of the overall outreach of BSE as also the Sensex i.e. the S&P BSE Sensex is the most widely check the index in India. In terms of operational settings, BSE hosts a range of operations – from general equities, indices, Mutual Funds, Initial Public Offerings, corporate bonds (debt), general debt, commodity derivatives, equity derivatives and currency derivatives. In addition to these core services, there are various ranges of operations offered by BSE as well, which include settlement services, risk management, education of investors etc. This gives a broad idea of the whole gambit of operations and activities that BSE is actively engaged in.

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