The Bombay
Stock Exchange (BSE) is an Indian stock
exchange located at Dalal
Street, Kala Ghoda, Mumbai, Maharashtra, India. Established
in 1875, the BSE is Asia’s first stock exchange and the world's fastest stock
exchange with a median trade speed of 6 microseconds. The BSE is the
world's 11th largest stock exchange with an
overall market capitalization of $1.7 trillion
as of January 23, 2015. More than 5500 companies are publicly listed on
the BSE.
The
Bombay is the oldest exchange in Asia. Its history dates back to 1855, when
five stockbrokers would gather under banyan trees in front of Mumbai's Town
Hall. The location of these meetings changed many times to accommodate an
increasing number of brokers. The group eventually moved to Dalal Street in
1874 and in became an official organization known as "The Native Share
& Stock Brokers Association" in 1875. On August 31, 1957, the BSE
became the first stock exchange to be recognized by the Indian
Government under the Securities Contracts Regulation Act. In 1980, the
exchange moved to the Phiroze Jeejeebhoy Towers at Dalal
Street, Fort area. In 1986, it developed the BSE SENSEX index,
giving the BSE a means to measure the overall performance of the exchange. In
2000, the BSE used this index to open its derivatives market, trading SENSEX
futures contracts. The development of SENSEX options along with equity
derivatives followed in 2001 and 2002, expanding the BSE's trading platform.
Historically
an open outcry floor trading exchange, the Bombay Stock Exchange switched to an
electronic trading system developed by CMC Ltd. in 1995. It took the exchange
only 50 days to make this transition. This automated, screen-based trading platform called BSE
On-Line Trading (BOLT) had a capacity of 8 million orders per day. The BSE has
also introduced a centralized exchange-based internet trading system,
BSEWEBx.co.in to enable investors anywhere in the world to trade on the BSE
platform.
The
BSE is also a Partner Exchange of the United Nations Sustainable Stock
Exchange initiative, joining in September 2012.
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