Stock exchanges are integral to the functioning of stock markets in India. They are platforms that allow companies to list their shares for being traded in the market. While there are many stock exchanges in India, the Bombay Stock Exchange or BSE stands out as the oldest and one of the most trusted ones in the country.
Published on 11 January 2022
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In this article, we will talk about the Bombay Stock Exchange and look at some essential features of the exchange.
Bombay Stock Exchange (BSE)
The Bombay Stock Exchange was the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. While it was founded in 1875 by Premchand Roychand, it has evolved into one of the largest stock exchanges in the world.
Here is a quick look at the history of BSE India:
In the 1850s, some stockbrokers started trading under a banyan tree near Horniman Circle, Mumbai
They changed locations and found a permanent one in 1874. Subsequently, they established The Native Share & Stock Brokers Association in 1875. This exchange eventually came to be known as the Bombay Stock Exchange.
The exchange operated out of a building near Town Hall until 1928 and moved into a new building near Horniman Circle in 1930
In 1957, BSEIndia became the first officially recognized stock exchange in the country.
In 1986, the BSE launched the S&P BSE Sensex Index to measure the overall performance of the exchange
In 1995, the BSE switched to an electronic trading system – BSE Online via its BSE On-Line Trading (BOLT) system
In 2000, the Bombay Stock Exchange opened its derivatives market
In 2012, BSE became a Partner Exchange of the United Nations Sustainable Stock Exchange initiative
In 2016, BSE India launched the first International Exchange of India – India INX
How does BSE India work?
BSE India uses an electronic system for accepting and executing trades. Investors can place orders directly in BSE Online by choosing the type of order based on their preference. However, transactions in BSE Online have to be entered via a registered stockbroker only.
While the Bombay Stock Exchange might offer direct access to some large-ticket preferential investors, all others have to go through a stockbroker. All transactions are settled within T+2 trading days as per the guidelines of the regulator, the Securities and Exchange Board of India (SEBI).
What do you mean by listing in BSE India?
When a company wants to raise capital for its business by issuing shares, bonds, or any other securities, it creates them in the primary market. An Initial Public Offer (IPO) is an example of a primary market where a company issues shares to the public for the first time. Companies launching an IPO are mandatorily required to list them on a prominent stock exchange before making the shares available to the public. Once the shares are issued, they can be traded in the secondary market of the exchange.
The Bombay Stock Exchange is a popular and trusted exchange in the country. When a company lists its stocks on the BSE, the awareness of its upcoming stocks is spread across investors. This allows the company to attract investors and raise capital. On the other hand, investors prefer shares listed with exchanges like the BSE as they can encash their investment whenever needed.
Some additional information about the Bombay Stock Exchange
Here are some quick facts about BSE India:
There are around 5400 companies listed on the BSE
The market capitalization of the Bombay Stock Exchange is around $3.6 Trillion
BSE is present in more than 450 cities across India
It is the oldest stock exchange in Asia
The S&P BSE Sensex is the most widely tracked stock market benchmark index in India
The vision of BSE India is: ‘Emerge as the premier Indian stock exchange by establishing global benchmarks.’
BSE is operated through a unique and proprietary computer system known as the “BSE On-Line Trading System” or BOLT.
When you start investing in the stock market, you come across various terms and jargon that can seem overwhelming. Two of the most basic terms used are the BSE Sensex and Nifty. While a quick online search will tell you that these are stock market indices, in this article, we will attempt to decode them for you to help you gain a comprehensive understanding. Let’s begin with some basics.
BSE launched the S&P BSE Sensex in 1986 to help investors get a quick view of the performance of the exchange and the overall sentiment of investors. If the Sensex increases from the previous day, then it is believed to be an indicator of positive overall investor sentiment. However, unless you are investing in the Index, it is prudent to analyze the performance of individual stocks before investing.
You can invest in BSE Online by opening a trading account with a stockbroker registered with the Bombay Stock Exchange. Once your account is opened, you can access the platform provided by the broker to enter orders and start trading.
Related Articles
what are Sensex and Nifty
When you start investing in the stock market, you come across various terms and jargon that can seem overwhelming. Two of the most basic terms used are the BSE Sensex and Nifty. While a quick online search will tell you that these are stock market indices, in this article, we will attempt to decode them for you to help you gain a comprehensive understanding. Let’s begin with some basics.
BSE launched the S&P BSE Sensex in 1986 to help investors get a quick view of the performance of the exchange and the overall sentiment of investors. If the Sensex increases from the previous day, then it is believed to be an indicator of positive overall investor sentiment. However, unless you are investing in the Index, it is prudent to analyze the performance of individual stocks before investing.
You can invest in BSE Online by opening a trading account with a stockbroker registered with the Bombay Stock Exchange. Once your account is opened, you can access the platform provided by the broker to enter orders and start trading.
Sharekhan Comtrade Private Limited (TM) operates the web site accessible from the URL www.myespresso.com (the “web site”').
Sharekhan Comtrade Private Limited is committed to protecting your privacy and utilising technology that gives you the most powerful, safe, online experience that you can get anywhere else.
Sharekhan Comtrade Private Limited does, however, gather certain information that is provided by you to the Web Site. Sharekhan Comtrade Private Limited believes that by collecting this information Sharekhan Comtrade Private Limited is able to provide you with a personalised web experience, and to assist its own sales team and advertisers in efficiently reaching an appropriate audience.Sharekhan Comtrade Private Limited does, however, gather certain information that is provided by you to the Web Site. Sharekhan Comtrade Private Limited believes that by collecting this information Sharekhan Comtrade Private Limited is able to provide you with a personalised web experience, and to assist its own sales team and advertisers in efficiently reaching an appropriate audience.
Sharekhan Comtrade Private Limited requests the minimum information it believes necessary to achieve this goal.
The following discloses Sharekhan Comtrade Private Limited's information gathering and dissemination practices for the Web Site:
System Data:
Sharekhan Comtrade Private Limited uses your IP address to help diagnose problems with our server and to administer the web site. Your IP address is used to identify you and your shopping cart and to gather broad demographic information.
Registration Data:
The Web Site's registration form may require users to give us contact information (like their name, phone number and e-mail address), unique identifiers (like their PAN Number) and demographic information (like their pin code, age or income level). The Web Site uses customer contact information from the registration form to send the users information about Sharekhan Comtrade Private Limited and promotional material from some of Sharekhan Comtrade Private Limited's partners. The customer's contact information is also used to contact the visitor when necessary. Unique identifiers (such as PAN numbers) are collected to verify the user's identity. Demographic and profile data is also collected at the Web Site. We use this data to tailor the visitor's experience at the Web Site, showing them contents that we think they might be interested in, and displaying the contents according to their preferences. This information is shared with advertisers on an aggregate basis.
Links and Co-Branded Sites:
This site contains links to other Web Sites which are not necessarily been screened or reviewed by www.myespresso.com. Sharekhan Comtrade Private Limited is neither responsible for the privacy practices or the contents of such Web Sites nor shall be held answerable for the inaccurate, inappropriate or offensive data, material, information, products and services that may be viewed on those sites.
Sharekhan Comtrade Private Limited may operate a number of co-branded sites. Policies regarding information collection and sharing may differ on some of these co-branded sites. If you have any particular questions, you should check the privacy statement that appears on each co-branded site.
Order Forms:
The Web Site uses an order form for customers to request information, products and services. The Web Site collects visitors' contact information (like their mobile number or e-mail address), unique identifiers (like their PAN number) financial information (like their account or credit card numbers) and demographic information (like their pin code, age or income level). Contact information from the order form is used to send orders, information about Sharekhan Comtrade Private Limited, and promotional material from some of Sharekhan Comtrade Private Limited's partners to the visitors of the Web Site. The visitor's contact information is also used to get in touch with the visitor when necessary. Financial information that is collected is used to check the users' qualifications and bill the user for products and services. Unique identifiers (such as PAN numbers) are collected from Web Site visitors to verify the user's identity.
Surveys and Contests:
The Web Site's online surveys ask visitors for contact information (like their mobile number or e-mail address) and demographic information (like their pin code, gender, age or income level). The Web Site uses contact data from its surveys to send the user information about Sharekhan Comtrade Private Limited and promotional material from some of Sharekhan Ltd.'s partners. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below. Demographic and profile data is also collected at the Web Site. The Web Site use this data to tailor its visitor's experience at the Web Site, showing them content that it thinks they might be interested in, and displaying the content according to their preferences. This information is shared with advertisers on an aggregate basis.
Sharekhan Comtrade Private Ltd run contests on the Web Site in which we ask visitors for contact information (like their e-mail address). Sharekhan Comtrade Private Limited uses contact data from its contests to send users information about Sharekhan Comtrade Private Ltd. and promotional material from some of our partners. The customer's contact information is also used to contact the visitor when necessary. Users may opt-out of receiving future mailings; see the choice/opt-out section below.
Third-Party Advertisement Servers:
Sharekhan Comtrade Private Limited engages the services of an outside advertisement company to display advertisement on the Web Site. These advertisements may contain cookies. While Sharekhan Comtrade Private Limited uses cookies in other parts of the Web Site, cookies received with banner advertisements are collected by the Advertisement company, and Sharekhan Comtrade Private Limited does not have access to this information.
Protection of your Data and Information:
The privacy and protection of your data and information provided to us is of vital importance. Sharekhan Comtrade Private Limited shall ensure to safeguard the security and confidentiality of any information you share with us. Any personally identifiable information of the customers obtained by us shall not be used or shared other than for the purposes to which the customers consents. However security and confidentiality of information cannot be guaranteed cent percent. Hence despite our utmost efforts to protect your personal information, Sharekhan Comtrade Private Limited and www.myespresso.com cannot warrant the security of any information you transmit to us through our online services. Such transmission of your personal information is done at your own risk.
Disclosure of Customer Information :
Sharekhan Comtrade Private Limited and www.myespresso.com shall not deliberately disclose customer's personally identifiable information to any unauthorized third person, save and except where such information shall be disclosed in good faith and for the purpose of law for the time being in force or to protect the rights and property of Sharekhan Comtrade Private Limited and www.myespresso.com.
Public Forums :
The Web Sites makes chat rooms, forums, message boards and/or news groups available to its users. Please remember that any information that is disclosed in these areas becomes public information and you should exercise caution when deciding to disclose your personal information.
Supplemental Information :
The Web Site supplements the information that you provide with information that is received from third parties.
The Web Site DOES NOT entice by the prospect of a special game, prize or other activity, to divulge more information than is needed to participate in the activity.
Further to the above, in light of the recently notified Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011. (Hereinafter referred to as the Rules)
The following shall be deemed to be sensitive information :
Password;
Financial information such as Bank account or credit card or debit card or other payment instrument details;
Physical, physiological and mental health condition;
Sexual orientation;
Medical records and history;
Biometric information;
Any detail relating to the above clauses as provided to body corporate for providing service; and
Any of the information received under above clauses by body corporate for processing, stored or processed under lawful contract or otherwise:
provided that, any information that is freely available or accessible in public domain or furnished under the Right to Information Act, 2005 or any other law for the time being in force shall not be regarded as sensitive personal data or information for the purposes of Rules.
Collection of Information:
Compliance with KYC guidelines as per SEBI / Exchanges / Or any other Act, law or regulation requiring the same and any internal KYC guidelines formulated by Sharekhan Comtrade Private Limited.
In order to provide enhanced trading experience to the client.
In order to provide any further information to be provided to regulators.
Such information may be collected in a manner that the client is always aware of the collection and purported usage of the same. The client shall have an option to withdraw consent to share the information. However such intimation shall be required in writing. Such intimation shall only be taken into account from the date on which the same is received. Sharekhan Comtrade Private Limited may choose to stop services to such a client in case such intimation is received. Such information shall only be used for the purpose it is collected.
Clients would be allowed an option not to disclose any information to be collected, provided the same is in compliance with regulatory requirements.
Disclosure of information:
Disclosure of sensitive information would be as per the terms agreed by the clients. For any change in such terms, the clients would be informed.
Provided no consent may be required in case the same is being shared as per compliance guidelines or as required by regulators.
Any information being disclosed to third parties would be in accordance with the Rules and would be done provided such third party has the same level of compliance guidelines as Sharekhan Comtrade Private Limited.
Sharekhan Comtrade Private Limited shall allow clients to review their personal information and the same shall be allowed to be edited provided exchange guidelines relevant to the same are followed.
Sharekhan Comtrade Private Limited shall maintain reasonable security practices and procedures and maintain a comprehensive documented information security programme. In the event of an information security breach, Sharekhan Comtrade Private Limited or a person on its behalf shall be required to demonstrate as and when called upon to do so by the agency mandated under the law, that there have implemented security control measures as per their documented information security programme and information security policies and information security policies that contain managerial, technical, operational and physical security control measures that are commensurate with the information assets being protected with the nature of business.
KYC Languages
Download Client Registration Documents (Rights & Obligations, Risk Disclosure Document, Do's & Don't's) in Vernacular Language :
Note: "This document is a translated version of the client registration documents in English and is being provided in vernacular language to facilitate better understanding by the investors. In case of any ambiguity, the contents of the English version would prevail."
NDNCR Terms & Conditions
By accepting the Terms & Conditions, you authorise Espresso, its representatives and agents to provide information about various products, offers and services provided by Espresso through any mode, including telephone calls, SMSes, emails, letters and any other mode of communication. You also confirm that laws in relation to unsolicited communication referred in "National Do Not Call Registry" as laid down by "Telecom Regulatory Authority of India" will not be applicable for such information/communication.
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