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primedirectors.com - A platform for Independent Directors

primedirectors.com

Website Concept, Design

and Owner

A corporate governance initiative by

Main Sponsor

Main Sponsor

The Stock Exchange Investors'

Protection Fund

Website updated till 05 November 2014

ABOUT BSE
The Native Share and Stock Brokers Association, a precursor to todays Bombay Stock Exchange (BSE), was born in
1875 and formally constituted in 1887. The oldest exchange in Asia and the first exchange in the country to be granted
permanent recognition under the Securities Contract Regulation Act, 1956, BSE has had an interesting rise to prominence
over the past 130 years. BSE, established as a voluntary not for profit, association of persons, jointly owned by the
members of the Exchange, is now a de-mutualised and corporatised entity, and a proposed public company limited by
shares.
Indias biggest bourse, in terms of listed companies and market capitalisation, BSE has played pioneering role in the Indian
Securities Market - one of the oldest in the world. Much before actual legislations were enacted, BSE had formulated
comprehensive set of Rules and Regulations for the Indian Capital Markets. It also laid down best practices adopted by the
Indian Capital Markets after India gained its Independence.
With over 800 members and 14,426 trading terminals, BSE network stretches across 417 cities in India. Today, the BSE
trading platform offers liquidity to the securities of 4,687 companies - the largest number of companies listed.
Registering almost 1.4 million transactions per day, the average daily turnover of BSE is about Rs.25 billion. While
thousands of investors seek BSE for a wide range of investment opportunities in equity, derivatives and debt, over 500
foreign institutions also invest funds through it. Responding to the growing demand, BSE offers easy access to the
securities market through its Internet trading facility WEBx.
BRAND BSE
BSE as a brand is synonymous with capital markets in India. The BSE SENSEX is the benchmark equity index that reflects
the robustness of the economy and finance. At par with international standards, BSE has been a pioneer in several areas
and is the first stock exchange in Asia and second stock exchange in the world to get ISO 9001:2000 certification for the
entire surveillance function.
BSE On-Line Trading System (BOLT) has been awarded the globally recognised the Information Security Management
System standard BS7799-2:2002. BSE is the only exchange in India and second in the world to achieve this for its On-line
Securities Trading System.
It is also the first in India to introduce Equity Derivatives, the first in India to launch a Free Float Index, the first in India to
launch US$ version of BSE SENSEX, the first in India to launch an Exchange Enabled Internet Trading Platform WEBx
2001, and the first to have an exclusive facility for financial training. It is also the only Exchange to offer Weekly Options
in Derivatives.
The real time surveillance system of BSE monitors the market online and throws alerts on slightest indications of market
irregularities. These alerts are then examined by way of strict procedures, after which necessary action is initiated. In fact,
there was no default reported on 17th of May 2004, the day the market crashed to a record low, with no member being
declared a defaulter.
The Clearing and Settlement department is also ISO 9001:2000 certified. This reflects the robust and efficient risk
management system at BSE.
Products
BSE offers a wide range of products for trading in the securities market. An investor can choose from 4,687 listed
companies. For the easy reference of investor, companies are classified into A, B1, B2, and Z groups. These denote the
levels of compliance by companies of the regulations of SEBI and the Exchange. The companies in A group denote the
highest level of companies, while those in the Z group have the lowest compliance level.
Another feature of equity trading at BSE is the Basket Trading facility wherein all scrips forming part of the BSE SENSEX

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can be dealt in as a basket in the same ratio as the weightage given to them in the SENSEX.
BSE also offers trading in SENSEX futures and options; as well as Futures and Options in individual stocks. BSE also
introduced trading in the Debt segment in 2001.
A full-fledged Investor Services Cell (ISC) redresses grievances of investors. Since its establishment in 1986, the cell has
played a pivotal role in enhancing and maintaining the faith and confidence of investors by resolving issues against listed
companies or against members of the Exchange. BSE was the first Exchange in the country to provide an amount of Rs.1
million towards the investor protection fund; its an amount higher than that of any Exchange in the country.
BSE also has an effective three-level arbitration mechanism that redresses grievances between members, investors against
members, and investors against companies. With more and more foreign investment flowing into the countrys financial
markets, particularly from the Non-Resident Indian (NRI) community, BSE has also charted out plans to conduct seminars
abroad, covering various aspects of Indians capital markets.
The BSE Training Institute (BTI), which imparts capital market training and certification, organized 150 programmers in
2003-04. At present, BTI, in collaboration with reputed management institutes and universities, offers 40 courses on
various aspects of the capital market and financial sector. More than 20,000 people have so far benefited from them.
In order to enable Small and Medium Enterprises (SME) to raise equity and debt, and facilitate trading in such companies,
BSE has launched a single order book national trading platform called BSE IndoNext. It envisages to harness the
advantages of creating a single national trading platform, with a large number of member participation, which would help
achieve a fairly vibrant trading volumes for small and medium enterprises.
BSE launched a nationwide investor awareness programme, Safe Investing in the Stock Market under which 264
programmes were held in more than 200 cities. Furthermore, dissemination of information through print and electronic
medium was undertaken on safeguards by retail and small investors.
Through its strict listing norms and other compliance requirements BSE promotes good corporate governance,
transparency in operations through print and electronic media and road-shows. BSE also promotes investor education by
sponsoring programmes.
Over the past 130 years, BSE has also facilitated the growth of corporates by providing them with an efficient access to
resource mobilization. There is, perhaps no leading corporate in India, which had not sourced BSEs services in raising
resources from the capital market. Today, BSE stands tall - an image of the iconic stature of the Exchange in the Indian
Capital Markets.
BSE LTD.
Phiroze Jeejeebhoy Towers, Dalal Street,Fort
Mumbai- 400001
Phone : (91 22) 22721234, 22721233 Fax : (91 22) 22721919
Email info@bseindia.com
Website www.bseindia.com

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