July 9 1875: The Bombay Stock Exchange Is Formed


 The Bombay Stock Exchange, also known as the BSE Ltd, was formed in Mumbai (then Bombay) on July 9th 1875.

The BSE Ltd, the oldest stock exchange in Asia had a very humble beginning under a Banyan Tree in Mumbai’s town hall. The stock exchange was started by four Gujaratis and one Parsi and gradually the group grew. As the number of brokers was continuing increasing the venue of their meeting changed many times. In 1874, the group finally moved to Dalal Street and in 1875 the group became an official organization known as The Native Share and Stockbrokers Association.

From 1946 to 1980, the stock market was dominated by Sir Phiroze Jeejeebhoy, who was its chairman from 1966 until his death in 1980. Sir Jeejeebhoy had enormous influence over brokers and the government and helped avert many critical situations owing to his knowledge and vast experience.

By 1956, the BSE became the first stock exchange to be recognized by the government of India under the Securities Contracts Regulation Act. By 1986, the BSE had developed the BSE SENSEX which made it easy for the BSE to measure the overall performance of the exchange. In 2000, the BSE used this index to open its derivatives markets, trading SENSEX futures contracts. The development of SENSEX options along with equity derivatives in 2001 and 2002 expanded the BSE’s trading options. Since its inception in 1857, the BSE was an open-floor trading exchange, the BSE switched to an electronic trading system in 1995. This transition took only fifty days in the making. This new automatic, screen-based trading platform called BSE On-Line trading (BOLT) currently has a capacity of 8 million orders per day. The BSE has also introduced the world’s first centralized exchange-based internet trading system to enable investors anywhere in the world to trade using the BSE platform.

The BSE also offers many other services to capital market participants, which includes risk management, market data services, education, clearing and settlement. The BSE has a nation wide presence and serves customers around the world. The stock market systems and processes are designed keeping in mind the importance of safeguarding market integrity, driving the growth of the Indian capital market and stimulating innovation and competition across all market segments.

The Bombay Stock Exchange is housed in the Jeejeebhoy Towers, named in honour of Sir Phiroze Jeejeebhoy the once chairman of the stock exchange. It has won many awards and accolades and is considered one of the best performing stock markets. 

 

Also On This Day:

 

1938 - Famous Hindi film actor Sanjeev Kumar is born.

 

1951: India's first Five Year Plan is prepared and published

 

1969: India accepts the Royal Bengal Tiger as its National Animal.

 

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