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History of BSE

The Bombay Stock Exchange (BSE) was founded in 1875 and is Asia's oldest stock market. Trading on the BSE occurs through a network of brokers and dealers on an electronic trading platform called BOLT. The trading process involves placing orders, order matching, trade confirmation, settlement between buyers and sellers, and clearing and settlement handled by the BSE's clearing corporation. Trading hours include a pre-open session from 9:00-9:15 AM and regular session from 9:15 AM - 3:30 PM.

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117 views3 pages

History of BSE

The Bombay Stock Exchange (BSE) was founded in 1875 and is Asia's oldest stock market. Trading on the BSE occurs through a network of brokers and dealers on an electronic trading platform called BOLT. The trading process involves placing orders, order matching, trade confirmation, settlement between buyers and sellers, and clearing and settlement handled by the BSE's clearing corporation. Trading hours include a pre-open session from 9:00-9:15 AM and regular session from 9:15 AM - 3:30 PM.

Uploaded by

Akshitha U
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© © All Rights Reserved
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History of BSE:

The Bombay Stock Exchange (BSE) is Asia's oldest stock market and one of the
world's leading stock exchanges. It has a long history dating back to the 1850s and
has played an important role in India's economic development. We will now look at
the Bombay Stock Exchange's history, evolution, and current state.
The Bombay Stock Exchange dates back to the 1850s, when a group of brokers
began trading under a banyan tree in Bombay(Now known as Mumbai). The trading
was informal and uncontrolled, with brokers gathering under a tree to buy and sell
cotton and other commodities.
The brokers created the Local Share and Stock Dealers Association in 1875, which
later became the Bombay Stock Exchange. The exchange was initially created in
1875, with 318 members at the time.
The exchange encountered various hurdles in its early years, including a lack of a
legislative framework, inadequate infrastructure, and little investor involvement.
Nonetheless, the exchange grew and by the early 1900s, it had become one of
Asia's premier stock exchanges.
The Indian government nationalised the banking system in 1956, and the Bombay
Stock Exchange was taken over by the government. Strict controls and restricted
investor participation characterised this period.
However, the Indian government liberalised the economy in the 1990s, and the
Bombay Stock Exchange underwent considerable adjustments. These reforms
included computerised trading, the formation of a regulatory framework, and the
encouragement of investor engagement.
The Bombay Stock Exchange has changed throughout time to keep up with evolving
market trends and technologies. The exchange replaced the open-outcry system
with electronic trading in the 1990s. This resulted in faster efficient trading and
enhanced market transparency.
The Bombay Stock Exchange founded the BSE Institute in 2000, which provides
finance and capital market courses. The institute's mission is to promote finance
education and research while also producing skilled individuals for the financial
industry.
The Bombay Stock Exchange launched its own stock index, the BSE Sensex, in
2012. The Sensex is a benchmark index that gauges the performance of the
exchange's top 30 companies.
The Bombay Stock Exchange is now one of the world's largest stock exchanges,
with a market capitalisation of more than $2 trillion. It is India's largest stock market,
with over 5,500 listed businesses.
The exchange provides a variety of financial goods, such as stocks, derivatives,
mutual funds, and bonds. It has a solid regulatory structure in place to ensure fair
and transparent trading.
Ultimately, the Bombay Stock Exchange has gone a long way since its humble
beginnings under a banyan tree. It has played an important part in India's economic
development and remains the world's leading stock exchange. The exchange, with
its emphasis on technology, education, and innovation, is well-positioned to face
future problems and contribute to the expansion of the Indian economy.

Trading on BSE:
The Bombay Stock Exchange (BSE) was founded in 1875 and is Asia's oldest stock
market. In terms of market value and trade volume, it is also India's largest stock
exchange. The BSE uses an electronic trading platform called the BSE Online
Trading System (BOLT). In this article, we will look at how the Bombay Stock
Exchange operates.
The trading process at the Bombay Stock Exchange is carried out through a network
of brokers and dealers. The BSE's trading platform is the BOLT system, which is an
electronic trading platform. This platform is used to fulfill orders and arrange trades
between buyers and sellers.
The following steps are included in the BSE trading process:

1. Placing an Order: Placing an order with a broker is the initial step in trading.
The investor can put a buy or sell order at a certain price.

2. Order Matching: The BSE system matches orders placed by buyers and
sellers. The BOLT system matches orders automatically based on price,
timing, and quantity.

3. Trade Confirmation: If the orders are matched, the BOLT system generates a
trade confirmation. The trade confirmation comprises information such as the
trade price, quantity, and execution time.

4. Settlement: The settlement procedure begins after the trade confirmation is


generated. The buyer and seller exchange money and shares during the
settlement procedure. The clearing corporation of the BSE handles the
settlement procedure.

5. Clearing and Settlement: The BSE's clearing corporation is in charge of


clearing and settling all trades performed on the exchange. The clearing
corporation operates as a counterparty to both the buyer and seller, ensuring
the proper completion of the settlement.
Trading hours of BSE:
The Bombay Stock Exchange's trading hours are separated into two sessions:
the pre-open session and the standard session. The pre-open session lasts from
9:00 to 9:15 a.m., and the regular session lasts from 9:15 a.m. to 3:30 p.m. The
pre-open session is used to determine the opening prices and to ensure a
seamless transition to the regular session.

In conclusion, the Bombay Stock Exchange is India's leading stock exchange,


and its trading procedure is carried out on an electronic platform known as BOLT.
The BSE provides a transparent and efficient trading platform for investors. The
trading process on the BSE is well-defined, and the clearing organisation ensures
that the settlement process runs smoothly.

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