KNOWING ABOUT

BSE(BOMBAY STOCK
EXCHANGE)
 INDEX
•INTRODUCTION
•BACKGROUND
•CORPORATE
STRUCTURE
•VISION AND MISSION
•SESSION TIMINGS
•BSE INDEX:SENSEX
•SERVICES PROVIDED
BY BSE
 BSE:INTRODUCTION
•The first and largest securities
market in India, the Bombay
Stock Exchange(BSE) was
established in 1875 as the
Native Share and Stock
Brokers Association.

•Based in Mumbai India the

BSE lists over 5000
companies . It is among the
top 10 stock exchanges in the
world.

•The market valuation of BSE

is Rs 300 trillion which is 3.6
trillion USD. As of 2023.
 BACKGROUND
• Founded in 1875 is the Asia’s first
stock exchange market the BOMBAY
STOCK EXCHANGE.
• It was granted permanent
recongnition under the Securities
Contract Regulation Act 1956.
• The BSE Sensex is India’s first equity
index launched on 2 Jan 1986.
• On 1st may 1992 SEBI act was
introduce ,act to protect, develop and
regulate the securities market.
• On 14th March 1995 the BSE online
trading system was introduced
• On 19th August 2005 BSE becomes a
corporate entity.
• BSE touches record milestone of over
7 crore registered users on 7th June
2021
 Corporate structure of BSE
Chairman
Shri S.S.MUNDRA

MD & CEO
SHRI Sudarshan
Ramamuthy

PUBLIC INTEREST SHAREHOLDER

DIRECTORS DIRECTOR
1.SHRI David WRIGHT SHRI T.C. Suseel Kumar
2.SHRI Umakant
Jayaram
3.Sushri Jayshree Vyas
4.Justice Shiavax Jal
Vzifdar
5. PROF. Subhasis
Chaudhri
6.Dr. Pdmini
Srinivasan
 Vision & Mission
•Vision:- Emerge as the
premier Indian S tock
Exchange with best in class
global practice in technology,
products innovation and
customer service.

•Mission:-The main aims and

objectives of the BSE is to
provide a market place for
the purchase and sale of
security evidencing the
ownership of business
property or of a public or
business debt.
 Session Timings
•Trading Sessions:- The pre
open session shall be for a
duration of 15 minutes that
is from 9:00AM to 9:15AM.
•Pre open session comprises
of two sessions that is
-Order entry period
-Order matching period
After order marching
period there are buffer period
to facilitate transition
between pre open and
continuous session.
 CONTINUED

• Order Entry Period :-The

order entry period shall be for
duration of 8 minutes,
during which order entry, and
cancellation shall be allowed.
(system driven random
stoppage between7th and 8th
minute).

— Both Limit and market order

will allowed.

— Dissemination of indicative
equilibrium indicative
match-able quantity & indicative
index values
 CONTINUED

• Order Matching Period

— Order matching period will
immediately start after
completion order of entry
period
— No Order
Addition/modification/cancelation
shall be allowed
— Opening price
determination. and trade
confirmation.
 CONTINUED
• Continuous Trading Session
9:15am to 3:30pm — Trades
occur continuesly as orders match
at time/ price priority.
— With the introduction of call
auction session the trading day
will look
like;
 CONTINUED
— The continuous trading
session will Commence Only
after the pre open session
ends. The two trading
sessions, continuous and call
auction (pre-open)
sessions Will not run
concurrently.

— The block deal trading

session (35 minutes) will Start
With the Commencement of
the continuous session ,
 BSE INDEX : SENSEX

• Stock Market
performance is quantified
by calculating an index
using the benchmark
scrip's and as known to all
SENSEX
(Sensitive Index) is
associated with Bombay
Stock Exchange.
 How are the SENSEX 30
stocks selected?

They are selected on the

basis of :-
• Listing History
• Trading Frequency
• Rank based on the Market
Cap (Should be Among top
100)
• Market Capitalization weight
• Industry/ Sector they belong
• Historical Record
SENSEX

• SENSEX has calculated since

and initially it was calculated
based on the Total Market
Capitalization methodology and
the methodology Was
Changed in 2003 to Free Float
Market Capitalization.
• Hence, these days, the
SENSEX is based on the Free
Floating Market Cap Of 30
SENSEX Stocks traded on
the BSE relative to the base
value Which is 100(1978-1979)
and it is calculated for every I5
seconds.
 CONTINUED
• SENSEX is calculated using the
"Free-float Market Capitalization"
methodology. Wherein, the level Of
index at any point of time reflects the
free-float market .
• It reflects value of 30 component
stocks relative to a base period.
• The market capitalization of a
company is determined by
multiplying the price of its stock by the
number of shares issued by the
company.
• This market capitalization is further
multiplied by the free-float factor to
determine the free-float market
capitalization.
 HOW IS SENSEX
CALCULATED ?
• The formula for calculating
the SENSEX (Sum of free
flow market cap of 30
benchmark stocks)*index
Factor

• Index factor =100/market

cap value in 1978-79.

• 100 is the Index value during

1978-79
 EXAMPLE

Example
• Assume SENSEX has only 2 Stocks
namely SBI and RELIANCE. Total
shares in SBI are 5OO out of which
200 are held by Government and only
300 are available for public trading.

RELIANCE has 1000 shares out of

which 500 are held by promoters and
500 are available for trading.
Assume price of SBI Stock is Rs.1OO
and Reliance is Rs.200. Then "free-
Floating Market Cap" of these 2
 METHOD

(300*100+500*200)=30000
+100000 = Rs. 130000
Assume Market Cap during
the year 1978-79 was
Rs.25000 then
SENSEX
130000*100/25000= 520.
The methodology in the
example is exactly followed
to calculate the SENSEX.
only difference being the
inclusion of 30 stocks.
SERVICES PROVIDED BY
BSE ?
• BSE has a Wide range Of services
to empower investors and facilitate
smooth transactions:
— Investor Services:
• The department of investor services
redresses grievances of investors.
• BSE was the first exchange in the
country to provide an amount
RS.1milliontowards the investor
protection fund ; it is an amount
higher then any exchange of the
country .
• BSE launched a nationwide investor
awareness program.
‘Safe investing in the stock Market'
under which 264 programs were held
in more than 200 cities
 CONTINUED
- BSEWEBX.com
• In February 2001,BSE introduced
worlds first centralized exchange
based internet trading system
BSEWEBX.com
• This initiative enables investors
anywhere in the world to trade on the
BSE platform.

— Surveillance:
• BSE's online Surveillance (BOSS)
monitors on a real time basis the
tprice movements, volume positions
and members positions and real time
measurement of default risk, market
reconstruction and generation of
market alerts.
 CONTINUED

.
- The BSE online Trading (BOLT):
• BSE online Trading (BOLT)facilitates
online screen based trading in securities .
BOLT is currently operating in 25000 trader
work stations located over 359 cities in
India.

— BSE Training Institute:

• BTI imparts capital market training and
certifications, in collaboration with reputed
management institutes and universities.
• It offers over 40 courses on various
aspects of the capital market and financial
sector. More than 20000 people have
attended the BTI programs.(2018)