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Bombay Stock Exchange

From Wikipedia, the free encyclopedia

BSE Limited
Corporate headquarters in Mumbai
TypeStock exchange
LocationMumbai, Maharashtra, India
Coordinates18°55′47″N 72°50′01″E / 18.929681°N 72.833589°E / 18.929681; 72.833589
Founded9 July 1875; 151 years ago (1875-07-09)[1]
by Premchand Roychand
Key people
CurrencyIndian rupee (₹)
No. of listings5,647[4]
Market cap₹480 lakh crore (US$5.0 trillion) (2 April 2026)[5]
Indices
Company
NSE: BSE
ISININE118H01017
Headquarters
Mumbai Edit this on Wikidata
RevenueIncrease ₹3,236 crore (US$340 million) (2025)
Increase ₹1,322 crore (US$140 million) (2025)
Websitewww.bseindia.com Edit this on Wikidata
Footnotes
Financials as of 31 March 2025.[7]

BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange based in Mumbai. Established in 1875, it is the oldest stock exchange in Asia, and also the tenth oldest in the world.[8][9][10]

On 3 February 2017, BSE Ltd. was listed on the National Stock Exchange (NSE).[11] As of 2026, BSE ranks among the top ten largest publicly traded stock exchange operators globally by market capitalization.[12]

History

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Bombay Stock Exchange logo used until June 2023

Origins and informal trading (1850s–1874)

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In the 1850s, stock trading in Bombay was conducted informally by a small group of five brokers—four Gujarati and one Parsi—who gathered under a banyan tree in front of the Bombay Town Hall.[9][13] As the number of brokers increased over the following decade, the group frequently relocated to accommodate their growing size, eventually settling under the banyan trees at the junction of Meadows Street and Esplanade Road (now Mahatma Gandhi Road).[14]

Formalization and Dalal Street (1875–1900s)

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By 1874, the rapidly expanding broker network required a permanent headquarters and a standardized regulatory structure.[15] In 1875, the prominent Śvetāmbara Jain financier and businessman Premchand Roychand organized the brokers into an official institution.[16][17] Roychand, who had amassed a vast fortune as the "Cotton King" and "Bullion King" of Bombay, provided the structural leadership to establish "The Native Share & Stock Brokers Association."[17] His intervention effectively transitioned the decentralized street traders into Asia's first official stock exchange.[18] With his backing, the association acquired a permanent location in 1899, which subsequently became known globally as Dalal Street.[15]

Government recognition and modernization (1957–1990s)

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Following Indian independence, the institution's regulatory framework was formally integrated into the national economy.[19] In 1957, the BSE became the first stock exchange to be officially recognized by the Government of India under the Securities Contracts (Regulation) Act, 1956.[19]

Corporatization and global integration (2000s–present)

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The 21st century marked significant structural changes for the exchange.[20] Pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified by Securities and Exchange Board of India (SEBI), the exchange was officially demutualized and corporatized on 19 May 2007.[20][21] The BSE subsequently expanded its global footprint by joining the United Nations Sustainable Stock Exchanges Initiative as a Partner Exchange in September 2012.[22] On 30 December 2016, the BSE established the India International Exchange (India INX), the country's first international stock exchange, based out of GIFT City.[23] The exchange further diversified its market offerings by launching the country's first commodity derivative contracts in gold and silver in October 2018.[24]

BSE Limited listed on the National Stock Exchange (NSE) on 3 February 2017 under the ticker symbol of "BSE".[a]

As of 2026, BSE Limited ranks as the tenth largest publicly traded stock exchange operator in the world by market capitalization, with a valuation of over ₹1.39 lakh crore.[12]

Criticism and controversies

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Stamp of India 2016 Bombay Stock Exchange

BSE has witnessed several high-profile market manipulation scandals.[25][26][27][28][29] At times, the Securities and Exchange Board of India (SEBI) has barred several individuals and entities from trading on the exchanges for insider trading and stock manipulation, especially in illiquid small-caps and penny stocks.[30][31][32][33]

The BSE faced criticism during the early 2000s for delayed technology upgrades, which contributed to its competitor NSE gaining market dominance in electronic trading. In 2013, market participants raised concerns over alleged preferential access to BSE's trading systems, prompting calls for improved transparency and oversight, though no regulatory action followed.[34]

See also

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References

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Notes

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  1. ↑ SEBI Regulation 45(1) of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 prohibits self-listing of a stock exchange in India.[18]

Citations

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  1. ↑ India, BSE. "Corporate profile" (PDF). Archived (PDF) from the original on 25 September 2021. Retrieved 8 August 2020.
  2. ↑ "SEBI approves Subhasis Chaudhuri's appointment as BSE governing board chairman - CNBC TV18". CNBC TV18. 22 November 2024. Retrieved 4 December 2024.
  3. ↑ "bse bod". Archived from the original on 11 January 2023. Retrieved 11 January 2023.
  4. ↑ "All India Market Capitalisation | BSE Listed stocks Market Capitalisation". BSE. Retrieved 2 October 2024.
  5. ↑ "BSE India". Retrieved 2 April 2026.
  6. ↑ "BSE relaunches Sensex, Bankex derivative contracts". The Economic Times. 15 May 2023.
  7. ↑ "Investor Presentation FY25" (PDF). BSE. Retrieved 25 June 2025.
  8. ↑ "Monthly Reports - World Federation of Exchanges". WFE. Archived from the original on 11 January 2023. Retrieved 21 May 2018.
  9. 1 2 "BSE-Introduction". bseindia.com. Archived from the original on 31 January 2018. Retrieved 31 January 2018.
  10. ↑ Priya Rawal (16 April 2015). Indian Stock Market and Investors Strategy. Priya Rawal. pp. 12–. ISBN 978-1-5053-5668-7. Archived from the original on 11 January 2023. Retrieved 23 November 2018.
  11. ↑ "Blockbuster listing for BSE; shares end nearly 33% higher". Business Standard. 3 February 2017.
  12. 1 2 "Largest stock exchanges by market cap". companiesmarketcap.com. Retrieved 31 August 2026.
  13. ↑ "The Profile of the Bombay Stock Exchange Limited".
  14. ↑ "The History of Bombay Stock Exchange". 11 September 2014. Archived from the original on 30 October 2021 – via YouTube.
  15. 1 2 "BSE to list on NSE on 3 February". Livemint. 29 January 2017. Archived from the original on 27 November 2022. Retrieved 27 November 2022.
  16. ↑ "BSE may set another record, become an official tourist spot". The New Indian Express. Press Trust of India. 6 October 2017. Archived from the original on 4 November 2021. Retrieved 4 November 2021.
  17. 1 2 Manu Balachandran (22 January 2017). "142 years after taking roots under a banyan, Asia's oldest stock exchange hits the capital market today". Quartz. Archived from the original on 27 November 2022. Retrieved 27 November 2022.
  18. 1 2 "Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 [Last amended on June 04, 2019]". sebi.gov.in. Archived from the original on 11 January 2023. Retrieved 27 November 2022.
  19. 1 2 Pradhan 2009, p. 54.
  20. 1 2 "BSE demutualisation complete". Business Standard India. 14 June 2013. Archived from the original on 27 November 2022. Retrieved 27 November 2022.
  21. ↑ "Order in respect of BSE (Corporatisation and Demutualisation) Scheme, 2005". sebi.gov.in. Archived from the original on 27 November 2022. Retrieved 27 November 2022.
  22. ↑ "Bombay Stock Exchange (BSE) commits to promoting sustainability". UNCTAD. 28 September 2012. Archived from the original on 2 April 2015. Retrieved 29 April 2016.
  23. ↑ "India INX". indiainx.com. Archived from the original on 18 October 2018. Retrieved 15 March 2018.
  24. ↑ "India thehindubusinessline". Business Line. October 2018. Archived from the original on 27 July 2020. Retrieved 25 October 2018.
  25. ↑ "How India's trading queen and mystery guru engulfed NSE in scandal". The Economic Times.
  26. ↑ Rangan, MC Govardhana. "The fall of NSE: Corruption or hubris?". The Economic Times.
  27. ↑ "BSE Sensex drops as corruption scandal weighs". Reuters. 25 November 2010.
  28. ↑ "SEBI penalises BSE, NSE for 'laxity' in Karvy fraud case". 13 April 2022.
  29. ↑ "Trading 'queen' and mystery guru: Strange tale engulfs NSE in scandal". Business Standard India. 21 March 2022.
  30. ↑ Sreedhar, Vidya (21 June 2023). "Rs 144 crore wrongful profit! Sebi finds stock manipulation in 5 smallcaps". The Economic Times. Retrieved 24 August 2023.
  31. ↑ "Sebi ban pinches penny stocks". Business Standard. Retrieved 24 August 2023.
  32. ↑ "SEBI Cracks Down on Misuse of Penny Stocks". The Wire. Retrieved 24 August 2023.
  33. ↑ "I-T Department, SEBI begin crackdown on penny stock firms in PMO-led push". Moneycontrol. 20 November 2017. Retrieved 24 August 2023.
  34. ↑ "Preferential access? A look into how NSE got ahead in tech race". Business Standard. 10 February 2017. Retrieved 14 June 2025.

Sources

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  • Kochhar, S. (2015). BSE: Journey of an Aspiring Nation. Skoch Media. ISBN 978-8-1929-1725-2.
  • Pradhan, Rudra Prakash (2009). Forecasting Financial Markets in India. Allied Publishers. ISBN 978-81-8424-426-7.
  • Ramkumar, R.R. and Selvam, M. (2014). Efficiency of BSE Sectoral Indices in India: A Study with Special Reference to Bombay Stock Exchange Ltd in India. Lap Lambert Academic Publishing GmbH KG. ISBN 978-3-6592-1130-0.{{cite book}}: CS1 maint: multiple names: authors list (link)
  • Kaur, H. (2002). Stock Market Volatility in India. Deep & Deep Publications. ISBN 978-8-1762-9361-7.
  • Basu, D. and Dalal, S. (1993). The Scam: Who Won, who Lost, who Got Away. UBS Publishers' Distributors. ISBN 978-8-1859-4410-4. LCCN 93902443.{{cite book}}: CS1 maint: multiple names: authors list (link)
  • Hiremath, G.S. (2013). Indian Stock Market: An Empirical Analysis of Informational Efficiency. Springer India. ISBN 978-8-1322-1590-5. LCCN 2013946889.
  • Cummings, L. (2014). Rethinking the BSE Crisis: A Study of Scientific Reasoning under Uncertainty. Springer Netherlands. ISBN 978-9-4017-8491-7.
  • Razdan, A. Scaling in the bombay stock exchange index. Pramana - J Phys 58, 537–544 (2002). doi:10.1007/s12043-002-0063-y
  • Goel, A., Tripathi, V. and Agarwal, M. (2021), "Market microstructure: a comparative study of Bombay stock exchange and national stock exchange", Journal of Advances in Management Research, Vol. 18 No. 3, pp. 414–442. doi:10.1108/JAMR-06-2020-0109
  • Krishnamurti, Chandrasekhar and Eleswarapu, Venkat R., Liquidity, Stock Returns and Ownership Structure - An Empirical Study of the Bombay Stock Exchange (March 31, 1994). IIM Bangalore Research Paper No. 65, Available at SSRN 2181543 or doi:10.2139/ssrn.2181543
  • Sumon Kumar Bhaumik. “Stock Index Futures in India: Does the Market Justify Its Use?” Economic and Political Weekly, vol. 32, no. 41, 1997, pp. 2608–11. JSTOR 4405950. Retrieved 13 Feb. 2024.
  • Ganeshaiah, K. N. “Has the Behaviour of the Stock Market Been Affected by the Scam? — A Statistical Analysis.” Current Science, vol. 63, no. 7, 1992, pp. 345–47. JSTOR 24095453. Retrieved 13 Feb. 2024.
  • Nair, S. (2021). Bulls, Bears and Other Beasts (5th Anniversary Edition): A Story of the Indian Stock Market. Pan Macmillan. ISBN 978-9-3907-4257-8.
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18°55′47″N 72°50′00″E / 18.9298°N 72.8334°E / 18.9298; 72.8334 (Bombay Stock Exchange)

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