BSE - Origin, Growth and Practices

1. By
KOWSALYA S

3.  The Bombay Stock Exchange (BSE) is the first and largest
securities market in india and was established in 1875 as the
native share and stock broker’s association. Based in
Mumbai,India,the BSE lists close to 6000 companies and is one
of the largest exchanges In the world, along with the New York
Stock Exchange (NYSE),NASDAQ,London Stock Exchange
Group,Japan Exchange Group, and Shanghai Stock Exchange.
 The BSE has helped develop the country’s capital markets,
including the retail dept market,and helped grow the indian
corporate sector.

4.  BSE has the largest number of companies listed in the world with
more than 5000.however,only 3000 are actively traded.
 Trading on BSE was done under Banyan Tree in 1955.
 The Bombay Stock Exchange was established as The Native
Share & Stock Brokers’ association in 1875,which was later
changed to BSE.
 The first stock to be traded was Dutch East India Company.
 BSE’s popular equity index, the Sensex or the S&P BSE Sensex
is India’s most Widely tracked stock market benchmark index.
 Originally, the fee for membership of the association-the right of
admission to the Broker’s Hall- was fixed at Rs 51.

5. Objectives of BSE
 To safeguard the interest of investing public having dealings on
the exchange.
 To establish and promote honorable and just practices in
securities transactions.
 To promote, develop and maintain well-regulated market in
securities.
 To promote industrial development in the country through
efficient resource mobilization by the way of investment in
corporate securities.

6. History of BSE

7. Vision of BSE

8. Functions of BSE

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12.  Share market collects every type of information in respect of the listed
companies. generally , this information is published or in case of need anybody
can get it from the stock exchange free of any cost.
 In this way, the stock exchange guides the investors by providing various types
of information. consequently, the number of shareholders in companies is
increasing continuously.

13.  When securities are purchased with a view to getting profit as a result of change
in their market price, it is called speculation.it is allowed or permitted under the
provisions of the relevant Act.it is accepted that in order to provide liquidity to
securities, some scope for speculation must be allowed.