Bombay stock market
Bombay stock market is the principal stock market of India. The principal stock exchange of nation is Bombay Stock Exchange, also called as BSE, and is located in Mumbai, previously called as Bombay. Many people have made billion of rupees by trading at this stock exchange.
Bombay stock exchange:
The Bombay Stock Exchange Limited is commonly called as Bombay Stock Exchange and it is the oldest stock exchange not only in India but also in Asia. This stock exchange is located at Dalal Street in the financial capital of nation, Mumbai. This stock exchange was established in the year 1875. At present, there are more than 5000 Indian companies that are listed with this exchange. The trading volumes are significant as this stock exchange is the principal stock exchange of nation. It is really very interesting to note that the overall market capitalization of the stock exchange in terms of equity in the month of August 07 was $1.11 trillion. In the past few years, many foreign players have entered this stock market and as a result, the number of FII participating in this stock market has increased considerably. The principal index of this stock exchange is the BSE Sensex.
This term stands for BSE Sensitive Index and is also called popularly as BSE 30. This stock index is used widely in India and Asia for making references. This index is basically a value weighted index and is composed of stocks of 30 companies. The base year has been recognized as April 1979 and the base value is equivalent to 100. The 30 companies that make up the index are not fixed and these keep on changing as per different rules. But this change does not occur very often. In the past 20 years, the configuration of this index has changed only few times. These 30 companies accounts for about 20% of the overall market capitalization at the stock exchange. There are also some other indices that are used with respect to this stock exchange. These comprise BSE 500, BSE 200, BSE 100, BSE MIDCAP, BSE PSU, BSE SMALLCAP, BSE AUTO, BSE TECK, BSE PHARMA etc. To enable people know the latest stock quotes of companies listed at the stock exchange, there is a system called as the BSE Broadcast. This system is basically a large ticker that has been placed on the wall of BSE and it displays the latest stock quotes continuously. The stock exchange has also the largest video screen in India as well as South Asia and pertains to the business news channel NDTV Profit. The BSE Broadcast system was unveiled in the year 2006.
Other aspects:
There are many other aspects of Bombay Stock Market that must be understood by the reader so as to get complete information about the stock market and stock exchange. For all the people that make stock trade in India, Bombay Stock Exchange is the most familiar and common name. This stock exchange is also the first stock exchange in the nation that has been recognized by the government. Before 1875, this stock exchange was called as The Native Share and Stock Brokers Association. Permanent recognition was give to this stock exchange in the year 1956 by the Government of India under the Securities Contracts (Regulation) Act, 1956.
Since its inception, the Bombay Stock Exchange has played a very important role in the development of capital market and economy of the nation. If it is said that economy of country is affected by performance of this stock exchange, it would not be incorrect. This stock exchange is recognized all over the world and this is the reason why there is no obstruction to the flows from FII or the Foreign Institutional Investors.
The vision of this stock market index is to emerge as a premier stock exchange in the nation and to establish the global benchmarks regarding investments. This stock exchange is managed in a professional way by means of Board of Directors, which comprises representatives of the Managing Director, Trading Members etc. The board also comprised many eminent professionals across the nation. Since the board is inclusive, it has been shaped so that it can benefit from the participation of market intermediaries. Most of larger policy issues are formulated by this board only and it exercises complete control over the exchange. Managing Director of the exchange has been given the responsibility of managing the day to day trade at the stock exchange.
The network of Bombay Stock Exchange is quite extensive and it extends to 417 cities and towns located across the nations. The main aim of this network is to ensure transparent and integrated stock trading in the nation. Among the various types of instruments that are traded at the stock exchange, main are debt instruments, equity and derivatives. All the trading is done by an efficient online trading system called as BOLT, which has been certified with BS 7799-2-2002 and was made nationwide in the year 1997. It is very important to note here that the clearing and settlement functions as well as the surveillance systems of the exchange are certified with ISO 9001:2000.
The BSE also provides an international convention hall for all the companies that are listed at the exchange for the purpose of holing annual general meetings or for listing ceremonies or for other general meetings. The convention hall is also providing services to other Institutions attached with the exchange. The infrastructure of this hall is state of art and can accommodate from 700-900 people at time. All the latest gadgets are available at this hall.
There are also some interesting facts about the Bombay Stock Exchange that reader should know. BSE is the first exchange in the nation to introduce the Equity Derivatives and also the first one to launch the Free Float Index. It is also the first exchange in India to launch the US$ version and to launch the Exchange Enabled Internet Trading Platform. The stock exchange is also the first one to have financial training facilities.
This stock exchange is not aloof from scams and some of biggest scams of the region are associated with it like the Harshad Mehta scam, Ketan Parekh scam etc.ms and some of biggest scams of the region are associated with it like the Harshad Mehta scam, Ketan Parekh scam etc.
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