Bombay Stock Exchange

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BSE Limited (Formerly Bombay Stock Exchange Limited)
मुंबई शेअर बाजार
Type Stock Exchange
Location Mumbai, Maharashtra, India
Coordinates 18°55′47″N 72°50′01″E / 18.929681°N 72.833589°E / 18.929681; 72.833589
Founded 1875
Owner BSE Limited
Key people Ashish Kumar Chauhan (MD & CEO)
Currency Indian rupee (INR)
No. of listings 5,381 (as of May, 2014) out of which 1294 companies are in suspended category and 4087 companies are eligible for trading.www.bseindia.com
Market cap US$1.57 trillion (May 2014)[1]
Volume US$231 billion (Nov 2010)
Indexes BSE SENSEX
BSE Small Cap
BSE Mid-Cap
BSE 500
Website www.bseindia.com

Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd. and established as "The Native Share and Stock Brokers' Association") is one of Asia’s fastest stock exchanges, with a speed of 200 microseconds and one of India’s leading exchange groups. BSE is a corporatized and demutualised entity, with a broad shareholder-base that includes two leading global exchanges, Deutsche Bourse and Singapore Exchange, as strategic partners. BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, and mutual funds. It also has a platform for trading in equities of small-and-medium enterprises (SME). Over the past 139 years, BSE has facilitated the growth of the Indian corporate sector by providing an efficient capital-raising platform.

More than 5000 companies are listed on BSE, making it the world's top exchange in terms of listed members. The companies listed on BSE Ltd. command a total market capitalization of USD 1.51 Trillion as of May 2014.[1] It is also one of the world’s leading exchanges (3rd largest in March 2014) for Index options trading (Source: World Federation of Exchanges).

BSE also provides a host of other services to capital market participants, including risk management, clearing, settlement, market data services, and education. It has a global reach with customers around the world and a nation-wide presence. BSE systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market, and stimulate innovation and competition across all market segments. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification and the Information Security Management System Standard BS 7799-2-2002 certification for its On-Line trading System (BOLT). It operates one of the most respected capital market educational institutes in the country (the BSE Institute Ltd.). BSE also provides depository services through its Central Depository Services Ltd. (CDSL) arm.

BSE’s popular equity index - the S&P BSE SENSEX (Formerly SENSEX) - is India's most widely tracked stock market benchmark index. It is traded internationally on the EUREX as well as leading exchanges of the BRCS nations (Brazil, Russia, China and South Africa). On Tuesday, 19 February 2013 BSE has entered into Strategic Partnership with S&P DOW JONES INDICES and the SENSEX has been renamed as "S&P BSE SENSEX".

History[edit]

The Phiroze Jeejeebhoy Towers has housed the Bombay Stock Exchange since 1980.

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to 1855, when four Gujarati and one Parsi stockbroker would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as "The Native Share & Stock Brokers Association".

On 31 August 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 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 fifty 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. The BSE has also introduced the world's first centralized exchange-based internet trading system, BSEWEBx.co.in to enable investors anywhere in the world to trade on the BSE platform.[2]

Timeline[edit]

Following is the timeline of the BSE.

1830 to 1875[edit]

  • 1830's Business on corporate stocks and Share in Bank and Cotton presses started in Bombay.
  • 1860-1865 Cotton price bubble as a result of the American Civil War.
  • 1870 - 90's Sharp increase in Share prices of jute industries followed by a boom in tea stocks and coal.

1875 To 1995[edit]

  • 9 July 1875 The Native Share & Stock Broker's Association formed
  • 2 February 1921 Clearing House started by Bank of India
  • 31 August 1957 BSE granted permanent recognition under Securities Contracts (Regulation) Act (SCRA)
  • 2 January 1986 SENSEX, country's first equity index launched (Base Year: 1978-79 =100)
  • 10 July 1987 Investor's Protection Fund (IPF) introduced
  • 3 January 1989 BSE Training Institute (BTI) inaugurated
  • 25 July 1990 SENSEX closes above 1000
  • 15 January 1992 SENSEX closes above 2000
  • 30 March 1992 SENSEX closes above 4000
  • 1 May 1992 SEBI Act established (An Act to protect, develop and regulate the securities market)
  • 29 May 1992 Capital Issues (Control) Act repealed
  • 1992 Securities Appellate Tribunal (SAT) established
  • 14 March 1995 BSE On-Line Trading (BOLT) system introduced

1996 To 2000[edit]

2001 To 2005[edit]

  • 1 March 2001 Corporatisation of Exchanges proposed by the Union Govt.
  • 1 February 2001 BSE Webx Launched
  • 1 June 2001 Index Options launched
  • 4 June 2001 BSE PSU index introduced
  • 15 June 2001 WDM operations at commenced
  • 2 July 2001 VaR model introduced for margin requirement calculation
  • 9 July 2001 Stock options launched
  • 11 July 2001 BSE Teck launched, India’s First free float index
  • 25 July 2001 Dollex 30 launched
  • 1 November 2001 Stock futures launched
  • 29 November 2001 100% book building allowed
  • 31 December 2001 All securities clearing move to T+5 (trade date + 5 days)
  • 1 February 2002 Two way fungibility for ADR/GDR
  • 15 February 2002 Negotiated Dealing System (NDS) established
  • 1 April 2002 T+3 settlement Introduced
  • 1 January 2003 India’s first ETF on SENSEX - ‘SPICE' introduced
  • 16 January 2003 Retail trading in G Sec
  • 1 April 2003 T+2 settlement Introduced
  • 1 June 2003 Bankex launched
  • 1 September 2003 SENSEX shifted to free-float methodology
  • 1 December 2003 T group launched
  • 2 June 2004 SENSEX closes over 6000 for the first time (564.71 points, 11.14%)
  • 17 May 2004 Second biggest fall of all time, Circuit filters used twice in a day (the Scheme) announced by SEBI
  • 20 May 2005 The BSE (Corporatisation and Demutualisation) Scheme, 2005
  • 8 August 2005 Incorporation of Bombay Stock Exchange Limited
  • 12 August 2005 Certificate of Commencement of Business
  • 19 August 2005 BSE becomes a Corporate Entity

2006 To 2010[edit]

  • 7 February 2006 SENSEX closed above 10000
  • 7 July 2006 BSE Gujarati website launched
  • 21 October 2006 BSE Hindi website launched
  • 2 November 2006 ishares BSE SENSEX India Tracker listed at Hong Kong Stock Exchange
  • 2 January 2007 Launch of Unified Corporate Bond Reporting platform: Indian Corporate Debt Market (ICDM)
  • 7 March 2007 Singapore Exchange Limited entered into an agreement to invest in a 5% stake in BSE
  • 16 May 2007 Appointed Date under the Scheme i.e. Date on which Corporatisaton and Demutualisation was achieved. Notified by SEBI in the Official Gazette on 29.06.2007
  • 10 January 2008 SENSEX All-time high 21206.77
  • 1 October 2008 Currency Derivatives Introduced
  • 18 May 2009 The SENSEX raised 2110.70 points (17.34%) and Index-wide upper circuit breaker applied
  • 7 August 2009 BSE - USE Form Alliance to Develop Currency & Interest Rate
  • 24 August 2009 BSE IPO Index launched
  • 1 October 2009 Bombay Stock Exchange introduces trade details facility for the Investors
  • 5 October 2009 BSE Introduces New Transaction Fee Structure for Cash Equity Segment
  • 25 November 2009 BSE launches FASTRADE™ - a new market access platform
  • 4 December 2009 BSE Launches BSE StAR MF – Mutual Fund trading platform
  • 7 December 2009 Launch of clearing and settlement of Corporate Bonds through Indian Clearing Corporation Ltd.
  • 14 December 2009 Marathi website launched
  • 18 December 2009 BSE's new derivatives rates to lower transaction costs for all
  • 4 January 2010 Market time changed to 9.0 a.m. - 3.30 p.m.
  • 20 January 2010 BSE PSU website launched
  • 22 April 2010 New DBM framework @ Rs.10 lakhs - 90% reduction in Membership Deposit
  • 12 May 2010 Dissemination of Corporate Action information via SWIFT platform
  • 23 July 2010 Options on BOLT
  • 21 September 2010 First to introduce Mobile-based Trading
  • 29 September 2010 Introduction of Smart Order Routing (SOR)
  • 4 October 2010 EUREX - SENSEX Futures launch
  • 11 October 2010 Launch of Fastrade on Web (FoW) - Exchange hosted platform
  • 5 November 2010 SENSEX closes above 21,000 for the first time
  • 12 November 2010 Commencement of Volatility Index
  • 22 November 2010 Launch of SLB
  • 10 December 2010 Launch of SIP
  • 27 December 2010 Commencement of Shariah Index

2011 To 2014[edit]

  • 17 November 2011 Maharashtra and United Kingdom Environment Ministers launched Concept Note for BSE Carbon Index
  • 30 December 2011, picks up a stake in the proxy advisory firm, Institutional Investor Advisory Services India Limited (IiAS)
  • 7 January 2011 BSE Training Institute Ltd. with IGNOU launched India's first 2 year full-time MBA programme specialising in Financial Market
  • 15 January 2011 Co-location facility at BSE - tie up with Netmagic.com
  • 22 February 2012 Launch of BSE-GREENEX to promote investments in Green India
  • 13 March 2012 Launch of BSE - SME Exchange Platform
  • 30 March 2012 BSE launched trading in BRICSMART indices derivatives
  • 19 February 2013 - SENSEX becomes S&P SENSEX as BSE ties up with Standard and Poor's to use the S&P brand for Sensex and other indices.[3]
  • 28 November 2013 Launch of Currency Derivatives (BSE CDX)
  • 28 January 2014 Launch of Interest Rate Futures (BSE –IRF)
  • 11 Feb 2014 Launch of Institutional Trading Platform on BSE SME
  • 07 Apr 2014 Launch of Equity Segment on BOLT Plus with Median Response Time of 200 (µs)

Hours of operation[edit]

Session Timing
Pre-open Trading Session 09:00 - 09:15
Trading Session 09:15 - 15:30
Position Transfer Session 17:05 - 17:15
Closing Session 17:05 - 17:15
Option Exercise Session 17:07

The hours of operation for the BSE quoted above are stated in terms of the local time (GMT + 5:30). BSE's normal trading sessions are on all days of the week except Saturday, Sundays and holidays declared by the Exchange in advance.[4]

Indices[edit]

Graph of S&P BSE SENSEX monthly data from January 1991 to May 2013

The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major stock exchanges in India - Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE National Index was renamed BSE-100 Index from 14 October 1996 and, since then, its calculations take into consideration only the prices of stocks listed at BSE.

BSE launched the dollar-linked version of BSE-100 index on 22 May 2006, the "BSE-200" and the "DOLLEX-200" on 27 May 1994, the BSE-500 Index and 5 sectoral indices in 1999, and the BSE-PSU Index, DOLLEX-300, and the BSE TECk Index (the country's first free-float based index) in 2001. Over the years, BSE shifted all its indices to the free-float methodology (except BSE-PSU index).

BSE disseminates information on the Price-Earnings Ratio, the Price to Book Value Ratio, and the Dividend Yield Percentage of all its major indices on day-to-day basis. The values of all BSE indices are updated on a real time basis during market hours and displayed through the BOLT system, the BSE website, and news wire agencies. All BSE Indices are reviewed periodically by the BSE Index Committee. This Committee, which comprises eminent independent finance professionals, frames the broad policy guidelines for the development and maintenance of all BSE indices. The BSE Index Cell carries out the day-to-day maintenance of all indices and conducts research on development of new indices.[5]

SENSEX is significantly correlated with the stock indices of other emerging markets.[6][7]

Awards[edit]

  • The World Council of Corporate Governance has awarded the Golden Peacock Global CSR Award in financial sector for BSE's initiatives in Corporate Social Responsibility (CSR) in 2007.[8]
  • The Annual Reports and Accounts of BSE for the year ended 31 March 2006 and 31 March 2007 have been awarded the ICAI awards for excellence in financial reporting.
  • The BSE has been cited as one of the world's best performing stock market by Reuters.
  • The Human Resource Management at BSE has won the Asia - Pacific HRM awards for its efforts in employer branding through talent management at work, health management at work and excellence in HR through technology.
  • Prashant Nair, an employee of BSE has won the excellence award for creating a hassle-free application to make live feed from BSE to news.

1993 Bombay bombings at BSE[edit]

On Friday, 12 March 1993 at 1:30 p.m. a powerful car bomb exploded in the basement of the Bombay Stock Exchange building. The 28-story office building housing the exchange was severely damaged, and many nearby office buildings also suffered some damage. About 50 were killed by this explosion.[9]

See also[edit]

References[edit]

  1. ^ a b http://wap.business-standard.com/article/markets/bse-market-cap-crosses-rs-90-trillion-114060900198_1.html
  2. ^ "BSEIndia". BSEIndia. Retrieved 2010-07-28. 
  3. ^ Vyas Mohan (2013-02-19). "Sensex to carry S&P tag". Livemint. Retrieved 2013-06-14. 
  4. ^ Market Hours, Bombay Stock Exchange via Wikinvest
  5. ^ "BSEIndia". BSEIndia. Retrieved 2010-08-26. 
  6. ^ "BSE SENSEX Index Chart - Yahoo! Finance". Finance.yahoo.com. Retrieved 2010-07-28. 
  7. ^ http://www.reutersindia.net/ Asia Technical Analysis with Phil Smith
  8. ^ "Golden Peak Awards for CSR". http://www.goldenpeacockawards.com/. Golden Peak Awards. Retrieved 12 September 2014. 
  9. ^ Bombay Seeks Link to Stolen Car In Fatal Blast at Stock Exchange – 15 March 1993, The New York times

External links[edit]

Media related to Bombay Stock Exchange at Wikimedia Commons

Coordinates: 18°55′47″N 72°50′01″E / 18.929681°N 72.833589°E / 18.929681; 72.833589 (Bombay Stock Exchange)