Bombay stock exchange established in December 1887 is the country’s oldest trade association. The stock exchange building in Mumbai at dalal street is a well known landmark in the city. Bombay stock exchange is the largest in India. It accounts for 2/3rds of the total business conducted in India. It is also the fifth largest exchange in the world, with market capitalization of $466 billion.

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to the 1850s, when 4 Gujarati’s and 1 Parsi stockbroker would gather under banyan trees in front of Mumbai’s Town Hall. The location of these meetings changed many times, as the number of brokers constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as ‘The Native Share & Stock Brokers Association’. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.

The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure 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 in 1995.  This automated, screen-based trading platform called BSE On-line trading (BOLT) currently has a capacity of 80 lakh orders per day. The BSE has also introduced the world’s first centralized exchange-based internet trading system, BSEWEBx.co.in to enable investors anywhere in the world to trade on the BSE platform.

On Feb, 2010, the equity market capitalization of the companies listed on the BSE was US$1.28 trillion, making it the 4th largest stock exchange in Asia and the 11th largest in the world. With over 6000 Indian companies listed & over 7700 scripts on the stock exchange it has a significant trading volume. The BSE SENSEX (SENSitive indEX), also called the “BSE 30″, is a widely used market index in India and Asia. Though many other exchanges exist, BSE and the National Stock Exchange of India account for most of the trading in shares in India.
Now every year the exchange increases the number of shareholders by about 1.5 million. The Mumbai Stock Exchange is presently decentralized. There is a panel of Directors who are engaged in the management of the exchange effectively. These board members include representatives of trading companies and other professionals. Besides, there is a Managing Director at the apex. This board of Directors is also engaged in the formulation of policies, programs and guidelines and controls the entire exchange.

The Bombay Stock Exchange is also actively involved with the development of the retail debt market. The debt market in India is considered extremely important, as the country continues to develop and depends on this type of investment for growth. Until recently, the debt market in India was limited to a wholesale market, with banks and financial institutions as the only participants. The Bombay Stock Exchange believes that a retail market will bring great opportunities to individual investors through better diversification.

What are the hours of operation?

The hours of operation for the BSE quoted above are stated in terms of the local time (i.e. GMT +5:30) in Mumbai. BSE’s normal trading sessions are on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.