What is Bombay Stock Exchange? - Definition from WhatIs.com

Definition

Bombay Stock Exchange

Part of the Business terms glossary:

The Bombay Stock Exchange (BSE) is Asia's oldest stock exchange. Based in Mumbai, India, BSE was established in 1875 as the Native Share & Stock Brokers' Association. Prior to that brokers and traders would gather under banyan trees to conduct transactions. 

BSE functions as the first-level regulator in the securities market, providing monitoring and surveillance mechanisms that are able to detect irregularities and manipulations in stock prices. The Exchange also provides counter-party risk management in all transactions that take place on its trading platform through its clearing and settlement services. Shares of more than 5,000 companies are traded on BSE. In addition to equity and debt, the Exchange allows for trading of mutual fund units and derivatives.

Bombay Stock Exchange was recognized as an exchange under the Securities Contracts (Regulation) Act in 1957. Its benchmark index, the Sensitive Index (Sensex) was launched in 1986. In 1995, the BSE launched its fully automated trading platform called BSE On-Line Trading system (BOLT) which fully replaced the open outcry system.

In 2005, the Exchange changed from being simply an association of brokers to became a corporate entity. The administrative structure of the Exchange is headed by a board of directors, below which is a governing council and management that presides over its day-to-day functioning.

This was last updated in September 2012
Posted by: Margaret Rouse

Related Terms

Definitions

  • management by objective (MBO)

    - Management by objective (MBO) is a model in which employees and their managers collaboratively develop, define and explicitly agree to objectives. The purpose of MBO is to increase productivity and... (WhatIs.com)

  • T-shaped employee

    - A T-shaped employee, in the context of human resources, is an individual that has a depth of knowledge and skills in a particular area of specialization, along with a breadth of knowledge in relate... (WhatIs.com)

  • risk management

    - Risk management is a company's process for identifying and controlling threats to its assets, including proprietary corporate data, customers' PII and intellectual property. (SearchCompliance.com)

Glossaries

  • Business terms

    - Terms related to business, including definitions about project management and words and phrases about human resources, finance and vertical industries.

  • Internet applications

    - This WhatIs.com glossary contains terms related to Internet applications, including definitions about Software as a Service (SaaS) delivery models and words and phrases about web sites, e-commerce ...

Ask a Question About Bombay Stock ExchangePowered by ITKnowledgeExchange.com

Get answers from your peers on your most technical challenges

Tech TalkComment

Share
Comments

    Results

    Contribute to the conversation

    All fields are required. Comments will appear at the bottom of the article.