What is Bombay Stock Exchange ? In today’s article we will talk about Bombay Stock Exchange, the oldest stock exchange of India. The role of BSE in the Indian stock market is important. BSE is a stock market where economic details of major markets across the country are reported.
In today’s article we will know What is Bombay Stock Exchange, when was BSE established and what is BSE Sensex. If you are also interested in the stock market, then you must read this article, it will also increase your stock market knowledge.
So without wasting time let’s start today’s article – What is Bombay Stock Exchange
What is Bombay Stock Exchange ?
BSE i.e. Bombay Stock Exchange is a stock exchange in India, where investors or traders buy and sell any stocks, bonds and government securities.
BSE is not only the oldest stock exchange in India but also in Asia. Which has more than 140 years of experience in stock exchange. This is the world’s 10th largest stock exchange. There are more than 5500 companies registered in BSE.
BSE has an important contribution in giving India’s international financial market a worthy place in the world markets. BSE has also played an important role in Indian capital markets.
The benchmark index of BSE is Sensex (Sensex). Within Sensex, 30 companies registered in BSE are kept, and on the basis of their performance, the performance of BSE is determined.
Full Name of BSE(BSE Full Form)
The full name of BSE is Bombay Stock Exchange Of India Limited, which is Bombay Stock Exchange of India Limited in Hindi.
About Mumbai Stock Exchange (BSE)
|Full Form OF BSE||Bombay Stock Exchange.|
|Location||Dalal Street Mumbai, Maharashtra|
|Current Chairman||Vikramjit Sen|
|Currency||Indian Rupee (INR)|
History of BSE
BSC was established in 1875 in India’s financial capital Mumbai. In Mumbai, some people used to gather under a banyan tree to buy and sell shares. Gradually, as the number of people started increasing, a new place was discovered for trading in shares, which later became famous by the name of Dalal Street. Today, there is BSE Tower in the same Dalal Street.
BSE was established by Premchand Roychand along with 300 people. Initially BSE was named The Native Stock Broker Association, which was later changed to Bombay Stock Exchange.
Before 1992, shares were traded through documents, which took a lot of time to exchange shares as it took about 5 – 6 months for the documents to reach the investors. And scams in the stock market also started increasing.
Seeing the increasing scams in the stock markets, the Government of India established an institution called SEBI in 1992, whose purpose was to control the stock market and protect the interests of investors.
SEBI had made rules for the stock market on the lines of American markets, in which all accounts of share transactions were to be kept in computers. But BSE refused to follow SEBI’s rules, so the government created a second stock exchange named NSE (National Stock Exchange) in 1992.
In view of the increasing attraction of investors towards computerized stock exchanges, BSE got itself listed with SEBI in 1995. And BSE also became computerized stock exchange. Since then BSE works only under SEBI rules.
What is Sensex?
Sensex is a benchmark index of BSE. BSE Sensex was introduced in 1986. Top 30 companies listed in BSE are included in Sensex.
If 30 companies included in the Sensex performed well, that is, there was a rise in the Sensex, it means that the share prices of the companies listed in BSE have increased and the investors of BSE have benefited.
If the performance of 30 companies included in Sensex declines, it means that the share prices of companies listed in BSE have decreased.
What is BSE
The role of BSE in the Indian stock market is very important, because the stock exchange was started in India from BSE and BSE has played an important role in giving an identity to India’s international financial market across the world.
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- What is Bombay Stock Exchange [BSE] and what is Sensex in it?
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