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Bombay Stock Exchange
The Bombay Stock Exchange or BSE as it is most popularly
known is the oldest stock exchange in Asia. In terms of
listed companies (4, 800 by August 2007), the Bombay Stock
Exchange is the biggest in the world. Being located at the
Dalal Street in Mumbai, the stock exchange enjoys the
benefits of the financial capital of India. The stock
exchange was established in the year 1875 as "The Native
Share & Stock Brokers Association." Bombay Stock Exchange is
the first stock exchange in India to obtain permanent
recognition from the Government of India under the
Securities Contracts (Regulation) Act, 1956. The earlier the
exchange was operated as the Association of Persons, it is
now incorporated under the Companies Act, 1956. In October
2007 the market capitalization of the companies listed on
the BSE was US$ 1.61 trillion that have made it the largest
market in the South East Asia in terms of market
capitalization.
The exchange is managed professionally under the
direction of its Board of Directors that is made of eminent
people from the industries and commerce and headed by the
Managing director and CEO. The Board formulates all the
strategies and keeps an over all control on the functioning
of the exchange. The policy of the exchange has been formed
to ensure optimum integrality and transparency in the
processes. The Bombay stock exchange has nation presence in
around 417 cities and towns in India. The exchange has been
providing the investors an efficient market for trading in
equity, debt instruments and derivatives.
The BSE SENSEX that is also called the "BSE 30” is made
of thirty scripts. The index is followed extensively in
Indian capital market and it is regarded as the index of the
Indian capital market. The Bombay Stock Exchange is the
eminent stock exchange in India and the SENSEX of this
exchange is recognized and followed all over the world. The
exchange has played a pivotal role in shaping the capital
market in India. The companies that are listed in the BSE
index have been changed only a few times and they account
for about one-fifth of the total market capitalization of
the Bombay Stock Exchange. Though the SENSEX is the primary
and the most widely accept index of BSE there are few
indices as well, including BSE 500, BSE 100, BSE 200, BSE
PSU, BSE MIDCAP, BSE SMLCAP, BSE BANKEX, BSE Tech, BSE Auto,
BSE Pharma, BSE FMCG, BSE Consumer Durables and BSE Metal.
