History[edit]

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 man
y times as the number of brokers constantly increased. The group eventually move
d 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 t
he Indian Government under the Securities Contracts Regulation Act. In 1980, the
exchange moved to the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area. In
1986, it developed the BSE SENSEX index, giving the BSE a means to measure overa
ll performance of the exchange. In 2000, the BSE used this index to open its der
ivatives market, trading SENSEX futures contracts. The development of SENSEX opt
ions 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 sw
itched 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 o
rders per day. The BSE has also introduced the world's first centralized exchang
e-based internet trading system, BSEWEBx.co.in to enable investors anywhere in t
he world to trade on the BSE platform.[2]
Timeline[edit]
Following is the timeline of the BSE.
1830 to 1875[edit]
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[edit]
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 (Reg
ulation) 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 sec
urities 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[edit]
19 August 1996 First major SENSEX revamp* 22 March 1999 Central Depository Servi
ces Limited (CDSL) set up with other financial institutions
1 June 1999 Interest 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 2005[edit]
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 2001 Value at risk model introduced for margin requirement calculation
9 July 2001 Stock options launched
11 July 2001 BSE Teck launched, India s 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 securities clearing move 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 India s 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 Excha
nge
2 January 2007 Launch of Unified Corporate Bond Reporting platform: Indian Corpo
rate Debt Market (ICDM)
7 March 2007 Singapore Exchange Limited entered 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 an
d Demutualisation was achieved. Notified by SEBI in the Official Gazette on 29.0
6.2007
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 circu
it 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 I
nvestors
5 October 2009 BSE Introduces New Transaction Fee Structure for Cash Equity Segm
ent
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 Ind
ian 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 Depo
sit
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[edit]
17 November 2011 Maharashtra and United Kingdom Environment Ministers launched C
oncept Note for BSE Carbon Index
30 December 2011, picks up a stake in the proxy advisory firm, Institutional Inv
estor Advisory Services India Limited (IiAS)
7 January 2011 BSE Training Institute Ltd. with IGNOU launched India's first 2 y
ear 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 with Standard and Po
or's to use the S&P brand for Sensex and other indices.[3]
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 2
00 (s)
Hours of operation[edit]
Session Timing
Pre-open Trading Session
09:00 - 09:15
Trading Session 09:15 - 15:30
Position Transfer Session
17:05 - 17:15
Closing Session 17:05 - 17:55
Option Exercise Session 17:07
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 ex
cept Saturday, Sundays and holidays declared by the Exchange in advance.[4]
Indices[edit]
Graph of S&P BSE SENSEX monthly data from January 1991 to May 2013
The launch of SENSEX in 1986 was later followed up in January 1989 by introducti
on of BSE National Index (Base: 1983-84 = 100). It comprised 100 stocks listed a
t five major stock exchanges in India - Mumbai, Calcutta, Delhi, Ahmedabad and M
adras. 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 indi
ces in 1999, and the BSE-PSU Index, DOLLEX-300, and the BSE TECk Index (the coun
try'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 Valu
e Ratio, and the Dividend Yield Percentage of all its major indices on day-to-da
y basis. The values of all BSE indices are updated on a real time basis during m
arket hours and displayed through the BOLT system, the BSE website, and news wir
e agencies. All BSE Indices are reviewed periodically by the BSE Index Committee
. This Committee, which comprises eminent independent finance professionals, fra
mes the broad policy guidelines for the development and maintenance of all BSE i
ndices. The BSE Index Cell carries out the day-to-day maintenance of all indices
and conducts research on development of new indices.[5]
SENSEX is significantly correlated with the stock indices of other emerging mark
ets.[6][7]

Awards[edit]
The World Council of Corporate Governance has awarded the Golden Peacock Global
CSR Award in financial sector for BSE's initiatives in Corporate Social Responsi
bility (CSR) in 2007.[8]
The Annual Reports and Accounts of BSE for the year ended 31 March 2006 and 31 M
arch 2007 have been awarded the ICAI awards for excellence in financial reportin
g.
The BSE has been cited as one of the world's best performing stock market by Reu
ters.
The Human Resource Management at BSE has won the Asia - Pacific HRM awards for i
ts efforts in employer branding through talent management at work, health manage
ment at work and excellence in HR through technology.
Prashant Nair, an employee of BSE has won the excellence award for creating a ha
ssle-free application to make live feed from BSE to news.
1993 Bombay bombings at BSE[edit]
On Friday, 12 March 1993 at 1:30 p.m. a powerful car bomb exploded in the baseme
nt of the Bombay Stock Exchange building. The 28-storey office building housing
the exchange was severely damaged, and many nearby office buildings also suffere
d some damage. About 50 were killed by this explosion.[9]