Bombay Stock exchange (BSE)

What is BSE?

The Bombay Stock Exchange (BSE) is the first stock exchange to start operations in the country. It’s also one of the most extensive securities markets in India, with about 6,000 companies listed. The securities listed in BSE include:

  • Stocks
  • Index options
  • Futures stock 
  • Index futures
  • Options stock 
  • Weekly options

Points to Remember

  1. Sensex is the index measuring the performance of stocks traded on the BSE
  2. Sensex comprises the 30 most significant and most actively traded stocks in the BSE exchange

How does the Bombay Stock Exchange work?

It allows investors to buy and sell securities through electronically managed trading portals. For this, they can open an account with a brokerage firm or invest directly if they have bulky BSE transactions.

The Securities Exchange Board of India controls and manages the BSE. It works on a T+2 transaction settlement scheme, which means that the transactions take 2 days of processing time. 

What are the Functions of BSE?

Bombay Stock Exchange performs the following functions: 

  • Facilitating primary and secondary market activities
  • Allowing companies to raise capital for their enterprise
  • Helps regulate the price of securities by tracking demand and supply
  • Provide a platform that facilitates investors to liquidate their investments
  • Helps boost the economy

What are the Top Indices on BSE?

The top BSE indices are as follows: 

  • S&P BSE 100
  • S&P BSE SmallCap
  • S&P BSE LargeCap
  • S&P BSE 150 MidCap Index
  • S&P BSE 100 LargeCap TMC Index, etc. 

Why do Companies List on BSE?

Companies listed on the BSE to raise funds for company growth. Listing on BSE also helps build their reputation. The transactions and transfer process are secure, ensuring the safety of funds.

FAQs on the Bombay Stock Exchange

Is BSE a government company?

No, the BSE is a privately owned company. However, the Government of India recognises it under the Securities Contracts Regulations Act.

Who is the owner of BSE?

Pramod Agrawal is the chairperson and Sundararaman Ramamurthy is the MD & CEO of the Bombay Stock Exchange.

How many indices are there in BSE?

It has 30 of the most actively traded stocks. 

What is the main index of BSE?

The benchmark index used by BSE is Sensex.

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