Bombay Stock Exchange – What is, definition and concept | 2022

The Bombay Stock Exchange (BSE) is the largest stock market in India and the oldest in South Asia.

We are facing a regulated market in which the saver finances the investor in exchange for profitability, as is the case with other stock markets such as the Spanish ones in Madrid or Valencia. The choice of fixed or variable income will depend on the profile of said saver.

In it, shares, bonds, obligations or other financial assets are exchanged and it is done in an orderly and standardized manner. The objective is to bring together investors and savers to promote the economic development of the territory.

History of the Bombay Stock Exchange

Let’s look at some of the most relevant events in the history of the Bombay Stock Exchange.

  • First of all, as we have already mentioned, it is the oldest stock exchange in Asia.
  • It started as a gathering of merchants under a banyan tree.
  • This group of businessmen moved in 1874 to Dalal Street.
  • In 1875 they formed “The Native Share & Stock Brokers Association”, the Native Association of Stock Dealers.
  • The Securities Contracts Regulation Act recognized it as the first stock exchange in India.
  • Its main index is the BSE SENSEX, which was created in 1986.
  • In 1995 it implemented an electronic commerce system.
  • Between 2001 and 2002 the range of products offered in this market was expanded.

Most relevant features

Let’s take a look at some of its most important features.

  • Its market capitalization is 1.7 trillion dollars (USD).
  • It is the tenth largest stock exchange in the world.
  • More than 5,000 companies are listed on this stock exchange. This places it among the first in the world ranking.
  • Various types of securities are traded on it, such as stocks, bonds, mutual funds, and so on.
  • It offers additional services such as training or risk management.
  • It has a fast, effective and efficient electronic commerce system.
  • It has been a pillar in the capital markets in that country, promoting economic development.
  • Its headquarters are on Dalal Street, in Mumbai (India).
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Companies listed on the Bombay Stock Exchange

Let’s see, to finish, some of the companies that are listed on this market. We have chosen the largest ones as an example.

  • Asian Paints Ltd. (ASPN): A design company, commercialization of hygiene and cleaning products and various services.
  • Bajaj Finance Ltd. (BJFN): A company that offers, among others, technological products and financial services.
  • Nestle India Ltd. (NEST): Food specialist company.
  • Sun Pharmaceutical Industries Ltd. (SUN): A pharmaceutical company that is also listed on the Bombay Stock Exchange.

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