“BOMBAY STOCK EXCHANGE (BSE)”
RAJNEESH RANJAN PGDM- IV ROLL No. - 45
STOCK MARKET IN INDIA Stock market is one of those places that provide growth money from the investor. The BSE has the largest number of listed companies in the world. In the secondary market. Bombay is a stock exchange located on Dalal Street. All markets represent growth in this country. The market is mainly divided into secondary and primary markets. financial analysts and financial partners. As of December 2010. In the primary market. Usually transactions are conducted by agents designated by the company to share in exchange for a brokerage firm. Stock markets provide opportunities to more qualified professionals such as economists. While both have similar total market capitalization (about USD 1. The equity market capitalization of the companies listed on the BSE was US$1. Those who want to make money quickly came to the purse. when 4 Gujarati and 1 Parsi stockbroker would gather under banyan trees in front of Mumbai's
. It traces its history to the 1850s. The Stock Exchange. The BSE SENSEX (SENSitive indEX). the Bombay Stock Exchange has a significant trading volume. is a widely used market index in India and Asia.63 trillion as of December 2010.034 listed Indian companies and over 7700 scripts on the stock exchange. Countries that have good history of securities market are important. also called the "BSE 30". making it the 4th largest stock exchange in Asia and the 8th largest in the world. Mumbai and is the oldest stock exchange in Asia. there are over 5. HISTORY The Bombay Stock Exchange is the oldest exchange in Asia.INTRODUCTION The Bombay Stock Exchange (BSE) formerly.6 trillion). Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the major stock exchanges in India. Though many other exchanges exist. Indian Stock Market operates under the directives of the Board of Directors of Securities and Exchange of India also known as SEBI and has been authorized under a duty to protect the rights of investors and also for the promotion and legislation relating to capital market. BSE and the National Stock Exchange of India account for the majority of the equity trading in India. by actors representing various stocks business brokerage firms in different publicly traded companies on behalf of clients and earn brokerage. industry specialists. share volume in NSE is typically five times that of BSE. the company issuing its shares directly to the public.
the Bombay Stock Exchange switched to an electronic trading system in 1995. In 1956.in to enable investors anywhere in the world to trade on the BSE platform. there is a huge increase in securities trading volume. stock markets have adjusted to equal effective way to handle this volume.Town Hall. BOMBAY STOCK EXCHANGE (BSE) BSE is the oldest exchange in Asia. With the liberalization of the economy. The location of these meetings changed many times. The Bombay Stock Exchange developed the BSE Sensex in 1986. It took the exchange only fifty days to make this transition. In 2000 the BSE used this index to open its derivatives market. expanding the BSE's trading platform. Fort area. the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. There are more than 4. as the number of brokers constantly increased.700 companies on the list of BSE companies. screen-based trading platform called BSE On-line trading (BOLT) currently has a capacity of 8 million orders per day. The BSE is currently housed in Phiroze Jeejeebhoy Towers at Dalal Street. BSEWEBx.
. To protect the interests of policyholders and to regulate. Therefore. The BSE has also introduced the world's first centralized exchange-based internet trading system. His duty is to protect the interests of policyholders in the case concerning the allocation policy. Is this an index of 30 stocks representing 12 major sectors. For this reason. the appointment policyholders. Historically an open outcry floor trading exchange. In these days of the Exchange Board of India also keep an eye on the stock market in the past because there are some cases more powerful traps. market Indian stock market has been dismissed at the end strongly influenced by multinational corporations. promote and ensure orderly growth of the insurance industry and relevant topics that are connected. The list provides details of all worldwide high as it has grown in stature. trading Sensex futures contracts. To ensure a practice of efficient and transparent trading. several players major international market began operations in India. SEBI working for investors who put their money in the stock market. giving the BSE a means to measure overall performance of the exchange. The development of Sensex options along with equity derivatives followed in 2001 and 2002. This automated. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. Government India has established a national organization called Insurance Regulatory Development Authority (IRDA).co. stock exchanges are using automated screen trading systems.
 BSE places a great deal of emphasis on Information Technology for its operations and performance. the turf war begins between the SEBI and IRDA.Mumbai. This Committee which comprises eminent independent finance professionals frames the broad policy guidelines for the development and maintenance of all BSE indices. and that charges were barred from entering for mutual funds. legal and structural misconceived. Recently. BSE launched BSE-PSU Index. All BSE Indices are reviewed periodically by the BSE Index Committee. Ahmedabad and Madras. software and networking systems. surrender value of the policy and other terms and conditions insurance contracts. thus enabling BSE to enhance the quality and standards of service provided to its members. The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). IRDA to return this matter to SEBI and SEBI said the notice to insurance companies in terms of units of account (ULIP) sold by them was a € due to conceptual. 2006. Over the years. BSE disseminates information on the Price-Earnings Ratio. Delhi. settlement of insurance claim. investors and other market intermediaries. It comprised 100 stocks listed at five major stock exchanges in India .
BSE strictly adheres to IS policies and IS Security policies and procedures for its day-to-day
. The values of all BSE indices are updated on real time basis during market hours and displayed through the BOLT system. The BSE National Index was renamed BSE-100 Index from October 14. BSE-500 Index and 5 sectoral indices were launched in 1999.the BSE TECk Index. it is being calculated taking into consideration only the prices of stocks listed at BSE. BSE website and news wire agencies. BSE launched the dollar-linked version of BSE-100 index on May 22. Calcutta. Apply the rules of mutual funds in ULIP means that companies will not be able to pass a commitment to its customers. The BSE Index Cell carries out the day-to-day maintenance of all indices and conducts research on development of new indices. BSE shifted all its indices to the free-float methodology (except BSE-PSU index). DOLLEX-30 and the country's first free-float based index . when SEBI issued a notice to inform insurance companies are not approved to sell ULIP. investment rules and accounting are different for mutual funds and ULIP. In addition. 1996 and since then. the Price to Book Value Ratio and the Dividend Yield Percentage on day-to-day basis of all its major indices. The 'Operations & Trading Department' at BSE continuously upgrades the hardware.insurable interest. In 2001. BSE launched two new index series on 27 May 1994: The 'BSE-200' and the 'DOLLEX-200'.
operations on 24x7 basis which has enabled it to achieve the BS7799 certification and the subsequent ISO 27001 certification. STATE-OF-THE-ART HARDWARE BSE uses higher-end. The capacity of the BOLT platform stands presently enhanced to 80 lakh orders per day. improve the risk management system and strengthen the selfregulatory mechanisms. VSATs: Satellite based communication system serves the connectivity requirements of market participants in remote areas. BOLT has been certified by DNV for conforming to ISO 27001:2005 security standards. ROI and TCO. BOLT To facilitate smooth transactions. Rotunda and Cama building BSE WAN: TDM / MPLS lines from different service providers cater to connectivity requirements of market participants across the country. BSE has also been successful in maintaining systems and processes uptime of 99. BSE Online Surveillance System . Wired / Wireless media is used. Towers.integrated (BOSS-i). screen-based trading in securities was put into practice nation-wide within a record time of just 50 days. BSE had replaced its open outcry system with the BSE On-line Trading (BOLT) facility in 1995. fault-tolerant systems for its trading and related functionalities. Services are provided through BSE's Satellite Communication Hub in Mumbai. It uses Integrity Non-stop NS16000 and S88000 systems for its online trading systems (BOLT). scalability. A LARGE PRIVATE NETWORK BSE operates a large private network in India. BSE Campus comprises of 3 BSE buildings: P.
.J. The network uses following segments to cater to market intermediaries BSE's Campus LAN: Connects market participant offices across 20 floors of BSE campus to BSE systems.99%. An Real-time system to closely monitor the trading and settlement activities of the member-brokers. The systems have been designed to deliver the best performance without compromising on key factors of availability. This totally automated. This system enables BSE to detect market abuses at a nascent stage. In addition.
For the premier stock exchange that pioneered the securities transaction business in India. there was no measure or scale that could precisely measure the various ups and downs in the Indian stock market. came out with a Stock Index-SENSEX. 1. Till the decade of eighties. became members of what today is called Bombay Stock Exchange Limited (BSE). Over the decades. over a century of experience is a proud achievement.RISC based Unix Severs rp8420 from HP: for our Derivatives. in 1986. Data Feed. RBBS and other systems related to trading and related functionalities. BSE. Backoffice. The systems are facilitated by the use of the robust and high available storage subsystems from HP.
. Settlement. one of the best portals on the capital market which is also facilitated by the regional languages viz Hindi and Gujarati. BBS. A lot has changed since 1875 when 318 persons by paying a then princely amount of Re. The journey in the 20th century has not been an easy one. Intel blade servers running on Microsoft platform are also used for bseindia.that subsequently became the barometer of the Indian stock market. the stock market in the country has passed through good and bad periods. Intel blade servers running on Microsoft platform are used for the Internet based trading system (ITS) enabling the end users to carry out the trading activities from any location facilitated by the internet.com website.