BSE (Bombay Stock Exchange)

Bombay Stock Exchange (BSE) is an Indian stock exchange located in Mumbai, Maharashtra, India. Established in 1875 and is considered to be one of Asias fastest stock exchanges, with a speed of 200 microseconds and one of Indias leading exchange groups and one of the oldest stock exchanges in South Asia region. Bombay Stock Exchange is the world's 10th largest stock market by market capitalization at $1.7 trillion as of 23 jan 2015. More than 5,000 companies are listed on BSE, making it the world's top exchange in terms of listed members.HISTORY

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to 1855, when four Gujarati and one 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".

On 31 August 1957, the BSE became the first stock exchange to be recognized by theIndian Governmentunder the Securities Contracts Regulation Act. In 1980, the exchange moved to thePhiroze Jeejeebhoy TowersatDalal Street,Fort area. In 1986, it developed theBSE SENSEXindex, 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 developed by CMC Ltd in 1995. It took the exchange only fifty days to make this transition. This automated,screen-based trading platform called BSE On-line trading (BOLT) had a capacity of 8 million orders per day. The BSE has also introduced the world's first centralized exchange-based internet trading system,BSEWEBx.co.into enable investors anywhere in the world to trade on the BSE platform.

TIMELINEFollowing is the timeline of the BSE.

1830 to 1875 1830's Business on corporate stocks and Share in Bank and Cotton presses started in Bombay.

1860-1865 Cotton price bubble as a result of the American Civil War.

1870 - 90's Sharp increase in Share prices of jute industries followed by a boom in tea stocks and coal.

1875 To 1995 9 July 1875 The Native Share & Stock Broker's Association formed

2 February 1921 Clearing House started by Bank of India

31 August 1957 BSE granted permanent recognition under Securities Contracts (Regulation) Act (SCRA)

2 January 1986 SENSEX, country's first equity index launched (Base Year: 1978-79 =100)

10 July 1987 Investor's Protection Fund (IPF) introduced

3 January 1989 BSE Training Institute (BTI) inaugurated

25 July 1990 SENSEX closes above 1000

15 January 1992 SENSEX closes above 2000

30 March 1992 SENSEX closes above 4000

1 May 1992 SEBI Act established (An Act to protect, develop and regulate the securities market)

29 May 1992 Capital Issues (Control) Act repealed

1992 Securities Appellate Tribunal (SAT) established

14 March 1995 BSE On-Line Trading (BOLT) system introduced

1996 To 2000 19 August 1996 First major SENSEX revamp* 22 March 1999Central Depository Services Limited(CDSL) set up with other financial institutions

1 June 1999Interest rate swaps(IRS) /Forward Rate Agreements(FRA) allowed

15 July 1999 CDSL commences work

11 October 1999 SENSEX closed above 5000

11 February 2000 SENSEX crosses 6000 intra-day

9 June 2000 Equity Derivatives introduced

2001 To 2010 1 March 2001 Corporatisation of Exchanges proposed by the Union Govt.

1 February 2001 BSE Webx Launched

1 June 2001 Index Options launched

4 June 2001 BSE PSU index introduced

15 June 2001 WDM operations at commenced

2 July 2001Value at riskmodel introduced for margin requirement calculation

9 July 2001 Stock options launched

11 July 2001 BSE Teck launched, Indias First free float index

25 July 2001 Dollex 30 launched

1 November 2001 Stock futures launched

29 November 2001 100% book building allowed

31 December 2001 All securitiesclearingmove to T+5 (trade date + 5 days)

1 February 2002 Two way fungibility for ADR/GDR

15 February 2002 Negotiated Dealing System (NDS) established

1 April 2002 T+3 settlement Introduced

1 January 2003 Indias first ETF on SENSEX - SPICE' introduced

16 January 2003 Retail trading in G Sec

1 April 2003 T+2 settlement Introduced

1 June 2003 Bankex launched

1 September 2003 SENSEX shifted to free-float methodology

1 December 2003 T group launched

2 June 2004 SENSEX closes over 6000 for the first time (564.71 points, 11.14%)

17 May 2004 Second biggest fall of all time, Circuit filters used twice in a day (the Scheme) announced by SEBI

20 May 2005 The BSE (Corporatisation and Demutualisation) Scheme, 2005

8 August 2005 Incorporation of Bombay Stock Exchange Limited

12 August 2005 Certificate of Commencement of Business

19 August 2005 BSE becomes a Corporate Entity

7 February 2006 SENSEX closed above 10000

7 July 2006 BSE Gujarati website launched

21 October 2006 BSE Hindi website launched

2 November 2006 ishares BSE SENSEX India Tracker listed at Hong Kong Stock Exchange

2 January 2007 Launch of Unified Corporate Bond Reporting platform: Indian Corporate Debt Market (ICDM)

7 March 2007Singapore Exchange Limitedentered into an agreement to invest in a 5% stake in BSE

16 May 2007 Appointed Date under the Scheme i.e. Date on which Corporatisaton and Demutualisation was achieved. Notified by SEBI in the Official Gazette on 29.06.2007

10 January 2008 SENSEX All-time high 21206.77

1 October 2008 Currency Derivatives Introduced

18 May 2009 The SENSEX raised 2110.70 points (17.34%) and Index-wide upper circuit breaker applied

7 August 2009 BSE - USE Form Alliance to Develop Currency & Interest Rate

24 August 2009 BSE IPO Index launched

1 October 2009 Bombay Stock Exchange introduces trade details facility for the Investors

5 October 2009 BSE Introduces New Transaction Fee Structure for Cash Equity Segment

25 November 2009 BSE launches FASTRADE - a new market access platform

4 December 2009 BSE Launches BSE StAR MF Mutual Fund trading platform

7 December 2009 Launch of clearing and settlement of Corporate Bonds through Indian Clearing Corporation Ltd.

14 December 2009 Marathi website launched

18 December 2009 BSE's new derivatives rates to lower transaction costs for all

4 January 2010 Market time changed to 9.0 a.m. - 3.30 p.m.

20 January 2010 BSE PSU website launched

22 April 2010 New DBM framework @ Rs.10 lakhs - 90% reduction in Membership Deposit

12 May 2010 Dissemination of Corporate Action information via SWIFT platform

23 July 2010 Options on BOLT

21 September 2010 First to introduce Mobile-based Trading

29 September 2010 Introduction of Smart Order Routing (SOR)

4 October 2010 EUREX - SENSEX Futures launch

11 October 2010 Launch of Fastrade on Web (FoW) - Exchange hosted platform

5 November 2010 SENSEX closes above 21,000 for the first time

12 November 2010 Commencement of Volatility Index

22 November 2010 Launch of SLB

10 December 2010 Launch of SIP

27 December 2010 Commencement of Shariah Index

2011 To 2014 17 November 2011 Maharashtra and United Kingdom Environment Ministers launched Concept Note for BSE Carbon Index

30 December 2011, picks up a stake in the proxy advisory firm,Institutional Investor Advisory ServicesIndia Limited (IiAS)

7 January 2011 BSE Training Institute Ltd. with IGNOU launched India's first 2 year full-time MBA programme specialising in Financial Market

15 January 2011 Co-location facility at BSE - tie up with Netmagic.com

22 February 2012 Launch of BSE-GREENEX to promote investments in Green India

13 March 2012 Launch of BSE - SME Exchange Platform

30 March 2012 BSE launched trading in BRICSMART indices derivatives

19 February 2013 - SENSEX becomes S&P SENSEX as BSE ties up withStandard and Poor'sto use the S&P brand for Sensex and other indices.[4] 28 November 2013 Launch of Currency Derivatives (BSE CDX)

28 January 2014 Launch of Interest Rate Futures (BSE IRF)

11 Feb 2014 Launch of Institutional Trading Platform on BSE SME

07 Apr 2014 Launch of Equity Segment on BOLT Plus with Median Response Time of 200 (s)

HOURS OF OPERATIONSessionTiming

Pre-open Trading Session09:00 - 09:15

Trading Session09:15 - 15:30

Position Transfer Session17:05 - 17:15

Closing Session17:05 - 17:55

Option Exercise Session17:07

The hours of operation for the BSE quoted above are stated in terms of the local time (GMT + 5:30). BSE's normal trading sessions are on all days of the week except Saturday, Sundays and holidays declared by the Exchange in advanceINDICES:The launch of SENSEX in 1986 was later followed up in January 1989 by introduction of BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed at five major stock exchanges in India -Mumbai,Calcutta,Delhi,AhmedabadandMadras. The BSE National Index was renamed BSE-100 Index from 14 October 1996 and, since then, its calculations take into consideration only the prices of stocks listed at BSE.

BSE launched the dollar-linked version of BSE-100 index on 22 May 2006, the "BSE-200" and the "DOLLEX-200" on 27 May 1994, the BSE-500 Index and 5 sectoral indices in 1999, and the BSE-PSU Index, DOLLEX-300, and the BSE TECk Index (the country's first free-float based index) in 2001. Over the years, BSE shifted all its indices to the free-float methodology (except BSE-PSU index).

BSE disseminates information on the Price-Earnings Ratio, the Price to Book Value Ratio, and the Dividend Yield Percentage of all its major indices on day-to-day basis. The values of all BSE indices are updated on a real time basis during market hours and displayed through the BOLT system, the BSE website, and news wire agencies. All BSE Indices are reviewed periodically by the BSE Index Committee. This Committee, which comprises eminent independent finance professionals, frames the broad policy guidelines for the development and maintenance of all BSE indices. The BSE Index Cell carries out the day-to-day maintenance of all indices and conducts research on development of new indices.

SENSEX is significantly correlated with the stock indices of other emerging markets.

AWARDS The World Council of Corporate Governance has awarded the Golden Peacock Global CSR Award in financial sector for BSE's initiatives in Corporate Social Responsibility (CSR) in 2007.

The Annual Reports and Accounts of BSE for the year ended 31 March 2006 and 31 March 2007 have been awarded the ICAI awards for excellence in financial reporting.

The BSE has been cited as one of the world's best performing stock market by Reuters.

The Human Resource Management at BSE has won the Asia - Pacific HRM awards for its efforts inemployer brandingthrough talent management at work, health management at work and excellence in HR through technology.

Prashant Nair, an employee of BSE has won the excellence award for creating a hassle-free application to make live feed from BSE to news.