Bombay Stock Exchange

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Banyan banyan-tree
Bombay Stock Exchange
The BSE logo
BSE - Bombay Stock Exchange Building.jpg
Type Stock exchange
Location Mumbai, Maharashtra, India
Coordinates 18.929681°N 72.833589°E
Founded 1875
Owner BSE Limited
Key people Ashishkumar Chauhan (MD & CEO)
Currency Indian rupee ()
No. of listings 5,459[1]
Market cap US$ 1.7 trillion (23 Jan 2015)[1]
Volume US$ 93 billion (June 2014)[1]
BSE Small Cap
BSE Mid-Cap
BSE 500
Website www.bseindia.com

The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Kala Ghoda, Mumbai, Maharashtra, India. Established in 1875 the BSE is considered to be one of Asia’s fastest stock exchanges, with a speed of 200 microseconds and one of India’s leading exchange groups and the oldest stock exchange in the South Asia region. Bombay Stock Exchange is the world’s 10th largest stock market bymarket capitalization at $1.7 trillion as of 23 January 2015.[2] More than 5,000 companies are listed on BSE.


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 Towersat 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 a centralized exchange-based internet trading system,BSEWEBx.co.in to enable investors anywhere in the world to trade on the BSE platform.[3]

The BSE is also a Partner Exchange of the United Nations Sustainable Stock Exchange initiative, joining in September 2012.[4]


Following is the timeline of the BSE.

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 Value at risk 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
  • 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
  • 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.[5]
  • 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
  • 20 March 2014 BSE Launches New Debt Segment
  • 04 April 2014 BSE SME exceeds USD 1 billion market capitalisation
  • 07 April 2014 Launch of Equity Segment on BOLT Plus with Median Response Time of 200 (µs)
  • 27 May 2014 BSE felicitated at The Asian Banker Summit 2014
  • 26 September 2014 BSE inks MoU with BNY Mellon
  • 22 October 2014 BSE inks strategic partnership with YES BANK
  • 28 November 2014 BSE listed cos market cap crosses landmark 100 lakh crore
  • 12 December 2014 Market Cap of BSE SME listed companies crosses landmark 10,000 crore


  • 8 January 2015 BSE commenced live trading from its Disaster Recovery site in Hyderabad [6]

Hours of operation[edit]

Session Timing
Pre-open Trading Session 09:00 – 09:15
Trading Session 09:30 – 15:30
Position Transfer Session 17:05 – 17:15
Closing Session 17:05 – 17:55
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.[7]


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.[8]

SENSEX is significantly correlated with the stock indices of other emerging markets.[9][10]


BSE has won several awards and recognitions.

  • Lokmat HR Leadership Award at Mumbai in June-2014 [11]
  • 50 most talented global HR leaders in Asia at the World HRD congress at Mumbai in February-2014 [12]
  • FIICI-Frames Best Animation Film-International Category for the Investor Education television commercial [13]
  • India Innovation Award for Big Data Implementation
  • ICICI Lombard & ET Now Risk Manager Award in BFSI Category [14]
  • SKOCH Order of Merit for E-Boss for qualifying among India’s Best 2013 [15]
  • SKOCH Financial Award 2013 [16]
  • Financial Inclusion Awards – 2011 [17]
  • Indian Merchant Chamber Award in the Large Enterprise Category for use of Information Technology [18]
  • Best Managed Financial Derivatives Exchange in the Asia Pacific by the The Asian Banker [19]
  • The Golden Peacock Global CSR Award for its initiatives in Corporate Social Responsibility [20]
  • BSE has won NASSCOM – CNBC-TV18’s IT User Awards, 2010 in Financial Services category [21]
  • BSE has won Skoch Virtual Corporation 2010 Award in the BSE StAR MF category [22]
  • Responsibility Award (CSR), by the World Council of Corporate Governance
  • Annual Reports and Accounts of BSE have been awarded the ICAI awards for excellence in financial reporting for four consecutive years from 2006 onwards [23]
  • 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 [24]
  • CIO of the Year- Financial Sector: Ashishkumar Chauhan, Dy Chief Executive Officer, Bombay Stock Exchange [25]
  • 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.[26]

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-storey office building housing the exchange was severely damaged, and many nearby office buildings also suffered some damage. About 50 people were killed by this explosion.[27]

See also[edit]

140 years of BSE: Banyan Tree to BOLT
BSE, the country’s first and indigenously propelled stock exchange, marks 140 years of life with some nostalgia and some musing on what it’s supposed to be about
Sachin P Mampatta | Mumbai July 9, 2015 Last Updated at 22:48 IST
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Ashish Chauhan, CEO & MD of Bombay Stock Exchange and S Ramadorai, Non Executive Chairman of Bombay Stock Exchange during the 140th Anniversary celebration of BSE in Mumbai (pic: Kamlesh Pednekar)
140 years of BSE: Banyan Tree to BOLT
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The growing divide between markets and fundamentals
Chandrakant Sampat: Grand old man of Dalal Street
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The share brokers who first started conducting their business under a banyan tree in the 1840s were now looking for a roof under which to conduct their business. Twenty five brokers formed an association in 1875, each contributing Re 1, and called it The Native Share and Stock Brokers’ Association.

They settled on a trading hall in Dalal Street. However, they lacked the funds to pay the monthly rental, a princely sum of Rs 100. The man who came to their rescue was Dinshaw Maneckji Petit, also founder of the first textile mill in India. He bequeathed 25 shares in his Victoria Manufacturing Co Ltd, partly in exchange for the payment of brokerages he owed to some share brokers.

“Subsequently, those shares were sold at Rs 690 apiece. Of the Rs 17,250 thus raised, the Association repaid Maneckji Petit the Rs 2,393 he had advanced to it. The balance amount, Rs 14,857, provided the initial capital with which The Native Share and Stock Brokers’ Association started work,” notes Sameer Kochar in his book, BSE: Journey of an aspiring nation.

They later moved to their own building in January 1899, named after Petit. The exchange moved through many ups and downs through the years — the start of rival exchanges elsewhere, shutdowns due to boom-and-bust cycles and struggles with regulation to limit speculation.

BSE enjoyed a status as the pre-eminent force in the share market right up to the 1990s. Many familiar things associated with the BSE were introduced during this time, including the iconic Phiroze Jeejeebhoy Towers in which the exchange is now housed, and the 30-stock Sensex, barometer of the Indian stock market.

Introduction of dematerialisation and online trading posed its own challenges to the exchange, which some saw as still being wedded to the past. But, BSE adapted to the new challenges. It introduced the BSE On-Line Trading (BOLT) system in 1997. It set up the Central Depository Services (India) Ltd (CDSL) in 1999.

De-mutualisation came in 2005. This was a process by which ownership of the exchange was separated from the right to use it as a platform to conduct trades.

Today, the exchange claims the ability to process half a million orders in a second, to process individual trades in fractions of a second and the largest number of listed companies in India and the world.

The journey isn’t over, said Ashishkumar Chauhan, managing director and chief executive officer of BSE, at the bourse’s 140th celebration on Thursday.

“You can be trading trillions of dollars a day and might not be benefiting society at all. The other way is to work and be counted. Society needs capital formation, society needs job creation; what is the role of an exchange? Trading for the sake of trading or capital formation? Those are the choices we have. We are at a cross-road as a society, as an exchange. We have selected to go for capital formation and job creation. If we have to trade, okay we trade. But, ultimately, if we are not useful to society, society will pass us by,” he said.

Jul 9, 1875: The Native Share and Stock Brokers’ Association formed

Dec 3, 1887: Execution of indenture constituting the articles of association on the exchange

Feb 2, 1921: Clearing House started by Bank of India

Oct 29, 1925: The Bombay Securities Contracts Control Act, 1925, enacted.

January 2, 1986: Sensex, country’s first equity index, launched

May 1, 1992: Sebi Act implemented (an Act to protect, develop and regulate the securities market)

1992: Securities Appellate Tribunal (SAT) established

Mar 14, 1995: BSE on-line trading (BOLT) system introduced

Mar 22, 1999: CDSL set up with other financial institutions

Mar 1, 2001: Corporatisation of exchanges proposed by the govt

Apr 1, 2003: T+2 settlement introduced

Feb 14, 2007: Deutsche Börse enters into an agreement to invest in five per cent stake in BSE

Jul 8, 2011: Name changed from ‘Bombay Stock Exchange Ltd’ to ‘BSE Ltd’.

Nov 28, 2014: BSE-listed companies’ market cap crosses Rs 100 lakh crore

July 9, 2015: BSE completes 140 years of operations
Read more on: Stock Market | Bse Sensex | Dalal Street | Banyan Tree
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