 What is the Bombay Stock Exchange (BSE)?

The Bombay Stock Exchange (BSE) was founded in 1875 in India and was the first stock
market to be created there. It is currently one of the largest exchanges in the world as
well as the National Association of Securities Dealers Automated Quotation (NASDAQ),
the New York Stock Exchange (NYSE), and among other stock exchanges more.
The Bombay Stock Exchange was one of the first stock exchanges in Asia, and
currently, about 6,000 companies are listed on this market, which lists their shares,
some of them being small and medium-sized enterprises (SMEs). But the BSE not only
lists the shares of companies but also provides information and training on
compensation, settlement, and risk management in investing in the market.
In addition, the Bombay Stock Exchange is considered one of the fastest in Asia, with a
speed of 200 microseconds for taking investment actions, currently, the Bombay Stock
Exchange is trading more than 1.7 trillion dollars placing it among the 10 first bags
bigger world.

 How the Bombay Stock Exchange (BSE)

Well like any company and in this case Association, it was born in Dalal Street, India,
and this is compared to Wall Street, United States. In both cases, it is a physical place,
a street, a place where their home s all transactions fitness was done, manually, but
now with the use of technology and everything is virtual, so the bag Bombay securities
can also be traded over the internet.
Currently, with the internet, we can negotiate in the different stock exchanges that
exist and the Bombay Stock Exchange is not the exception, so I leave named some of
the things that can be negotiated:
o Company shares
o Stock futures
o Stock options
o Index futures
o Options on index

 History of the Bombay Stock Exchange

By the 1850s, Asian (Indian) brokers were conducting their business under a banyan
tree throughout Mumbai, India. But like everything else, the city was growing and the
businesses too, the passageways, streets were built and the city was born with more
force, with this, Dalal Street was born, in 1875 these merchants moved to Dalal Street,
the place where traders Indians made their transactions and that there would be born
the "Native Merchants Association Bag" but, later in the year 1995 became an
electronic trading system with the advent of the Internet and interconnected world.
The stock exchange goes to Bombay Securities, in 1986 it developed the BSE SENSEX
index, which allowed it to measure the overall performance of the stock market, with
this the BSE used this index to open its market to derivatives producers, using the
SENSEX to futures contracts.
Within the history of the evolution of the Bombay Stock Exchange, until before 1995,
the purchase and sale contracts were made live by voice, but in 1995 with the
introduction of the internet, it became a trade electronically. The association
implemented this improvement and placed screens to manage trade operations and
that it already had a capacity of 8 million purchase and sale orders per day.
 What companies are listed on the Bombay Stock Exchange?
Companies listed on the Bombay Stock Exchange companies totaled the number of
6000 companies, but to name and know some of the companies that are listed on this
bag are:

Scrip Code Company Close Price

500820 Asian Paints Ltd $ 3112.7
532215 Axis Bank Ltd $ 739.9
532977 Bajaj Auto Ltd $ 3750.95
500124 Dr Reddy's Laboratories Ltd $ 4554.3
532281 HCL Technologies Ltd $ 1117.15
500180 HDFC Bank Ltd $ 1514.35
532174 ICICI Bank Ltd $ 680.4
500247 Kotak Mahindra Bank Ltd $ 1703.75
500520 Mahindra & Mahindra Ltd $ 785.8
500790 Nestle India Ltd $ 19552.8
532540 Tata Consultancy Services Ltd $ 3557.45

 Indicators and sectors of the Bombay Stock Exchange

o Indicators
Like any other stock exchange, the Bombay Stock Exchange has the following
indices or indicators:
 BSE SENSEX:
SENSEX comes to be the acronym of the index of the Bombay Stock
Exchange, which would be the Bombay Stock Exchange Sensitive
Index. This index is based on the 30 largest companies representing
various sectors of the Bombay Stock Exchange.
The Sensex is considered the most representative, popular, and
accurate index in the Indian market and it is the most widely used
index to buy or sell shares in it.
 BSE SMALL CAP:
This indicator was created to represent the economic growth of the
smallest companies, which did not make it to the BSE 500.
 BSE MID-CAP:
This indicator, like the BSE SMALL CAP, was created to track the
performance of companies that were just growing and that did not fall
within the BSE 500 due to lack of experience and track record.
 BSE 500:
This indicator represents more than 93% of companies that are listed
within this Indian market and the largest companies are those that are
in this index or indicator.
 o Sectors of the Bombay Stock Exchange
In the different sectors that we can invest and especially in the BSE SENSEX
indicator, we have:

Nº Sector Market Capitalisation

1 Finance 40.69 %
2 Information technology 19.89%
3 Oil % Gas 11.39
4 FMCG 7.98
5 Transport Equipments 3.53
6 Capital Good 3.16
7 Telecom 2.43
8 Chemical & Petrochemical 2.30
9 Healthcare 2.26
10 Power 1.89
11 Metal, Metal Products & Mining 1.77
12 Housing Related 1.42
13 Consumer Durables 1.23

 Trading on the Bombay Stock Exchange

The trading of derivative currencies and the investment of derivatives began on
Thursday, November 28, 2013, in which the following rules were determined to be
listed on the Bombay stock exchange:
o Currency Future:
This negotiation would be carried out with contracts such as:
 US Dollar-Indian Rupee (US$-INR)
 Euro-Indian Rupee (EUR-INR)
 British Pound-Indian Rupee (G BP-INR)
 Japanese Yen-Indian Rupee (JPY-INR)
o Derivatives:
Derivatives will be traded with contracts that are exclusively in dollars, as we
will have:
 US Dollar-Indian Rupee (US$-INR)
o Trading in interest and the derivatives:
These will be purchased two with contracts to 91 days after their celebration.
o Derivatives Futures forex and stock options:
Like currency trading, these contracts will be entered into specifying the
purchase or sale of the particular assets to be invested.

 Roles within the Bombay economy

Among the functions are:
o They regulate the list of titles.
o They enter into trading contracts every day.
o Its objectives are to channel internal savings for investment needs, whether of
public or private entities.
o It offers the investor the optimal security conditions in the legal part so that
their transactions are carried out optimally and safely through this exchange.
 o It keeps a record of all the quotations and effective prices of the securities; it
also has available to the public information about what happens in the
Bombay stock market.
o They provide the facility for the settlement of trading contracts.

 Structure of the Bombay Stock Exchange

o Government body
Some entities of the Indian state are inside to help regulate the stock market,
in addition to being in charge of monitoring, inspecting, and issuing regulations
for compliance with them, in addition to sanctioning and imposing fines for
non-compliance.
o An organizational and administrative entity of exchanges
They coordinate the administration for the proper internal functioning of the
stock market.
o Computer connection network
o Regulation, settlement, and compensation entities
o Intermediaries
They are specialized and authorized companies that are stockbrokers to
transact on the Bombay stock exchange through them.

 How can I become a member of the Bombay Stock Exchange?

Some requirements that must be met to be a member of the BSE are:
o Authorization by the NSC as an exchange house.
o NSC negotiations.
o Registration data of the participating members.
o Company status.
o Membership fee.
o Financial statements.
o Company mission statements.
o Manual of internal operations and control of the same.
o Personal information of management and specialized personnel.
o Contribution to the guarantee fund.
o Pay for access to use an operating system.

 How can a company be listed on the Bombay Stock Exchange?

For companies to be able to list their shares on the stock market, they must comply
with the following:
o Permission to use the name of the exchange in the prospectus of an issuing
company
o Presentation of the application letter
o Assignment of values
o Trade permit
o 1% safety requirement
o Payment of fees.
o Compliance with agreements
o Cash management services.
  How did the Bombay Stock Market grow over the years?
Here are some dates that were important to the growth of the Bombay Stock
Exchange:

June 11, 2021 BSE sets up an agency (BSE Administration and Supervision Limited
- BSAL) to administer and supervise activities of SEBI Registered
Investment Advisors
January 29, 2021 SEBI and BSE launch Innovation Sandbox web portal

November 05, 2020 BSE gets exemptive relief under CFTC Regulation 30.10; enables
members to accept futures and options orders from customers
located in the US
June 11, 2020 BSE becomes India's First Exchange to Introduce and adopt India
Good Delivery Standards for GOLD and SILVER: BIS IS 17278:2019
February 03, 2020 BSE’s RFQ platform for debt securities goes live
December 20, 2019 BSE signs pact with Si Consult to strengthen cyber security
practices and solutions
May 13, 2019 BSE becomes India’s first-ever stock exchange to get certified with
International Standard for Business Continuity Management
System (ISO22301:2012) BCMS
March 27, 2019 BSE gets approval from SEBI and RBI to launch Futures on
Overnight Call Rate MIBOR
30th June 2018 BSE signs MoU with Bombay Metal Exchange
16th May 2018 BSE becomes India’s first exchange to be recognized as a
Designated Offshore Securities Market by the US SEC 
19th January 2018 BSE StAR Mutual Fund introduces the e-mandate facility
23rd March 2017 BSE crosses another milestone of raising Rs.200,111 Crore via the
Debt online platforms
9th July 2016 Shri Arun Jaitley, Hon'ble Minister of Finance Unveiled the
Commemorative Postage Stamp Celebrating 140 glorious years of
BSE
2nd May 2016 BSE Migrates Algorithm Trading Test Environment to Cloud
Infrastructure
13th Oct 2015 BSE becomes the fastest exchange in the world with a median
response speed of 6 microseconds
08th Jan 2015 BSE commenced live trading from its Disaster Recovery site in
Hyderabad
22nd Oct 2014 BSE inks strategic partnership with YES BANK
11th Feb 2014 Launch of Institutional Trading Platform on BSE SME
19th Feb 2013 BSE enters into Strategic Partnership with S&P Dow Jones Indices
13th Mar 2012 Launch of BSE - SME Exchange Platform
17th Nov 2011 Maharashtra and United Kingdom Environment Ministers launched
Concept Note for S&P BSE Carbon Index
7th Jan 2011 BSE Training Institute Ltd. with IGNOU launched India's first 2 years
full-time MBA program specializing in Financial Market
27th Dec 2010 Commencement of S&P BSE Shariah Index
29th Sep 2010 Introduction of Smart Order Routing (SOR)
20th Jan 2010 S&P BSE PSU website launched
4th Dec 2009 BSE Launches BSE StAR MF – Mutual Fund trading platform
5th Oct 2009 BSE Introduces New Transaction Fee Structure for Cash Equity
 Segment
18th May 2009 The S&P BSE SENSEX raised 2110.70 points (17.34%) and Index-
wide
upper circuit breaker applied
10th Jan 2008 S&P BSE SENSEX All-time high 21206.77
16th May 2007 Appointed Date” under the Scheme i.e. Date on which
Corporatization and Demutualization were achieved. Notified by
SEBI
in the Official Gazette on 29.06.2007
20th May 2005 The BSE (Corporatization and Demutualization) Scheme, 2005
(the Scheme) announced by SEBI
1st June 2003 Bankex launched
31st Dec 2001 All securities turn to T+5
1st Mar 2001 Corporatization of Exchanges proposed by the Union Govt.
1st Jun 1999 Interest Rate Swaps (IRS) / Forward Rate Agreements (FRA)
allowed
21st Jul 1997 Brokers Contingency Fund (BCF) introduced
19th Aug 1996 First major S&P BSE SENSEX revamp
14th Mar 1995 BSE On-Line Trading (BOLT) system introduced
1st May 1992 SEBI Act established
(An Act to protect, develop and regulate the securities market)
25th Jul 1990 S&P BSE SENSEX closes above 1000
10th Jul 1987 Investor's Protection Fund (IPF) introduced
2nd Feb 1921 Clearing House started by Bank of India
9th Jul 1875 The Native Share & Stock Broker's Association formed