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The Bombay Stock Exchange Limited

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    The Bombay Stock Exchange Limited (Marathi: मुबई शेअर बाजार Mumbaī Śhear Bājār) (formerly, The Stock Exchange, Mumbai; popularly


    called Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia and has the greatest number of listed companies in the world, with 4700

    listed as of August 2007.[1] It is located at Dalal Street, Mumbai, India. On 31 December 2007, the equity market capitalization of the companies listed

    on the BSE was US$ 1.79 trillion, making it the largest stock exchange in South Asia and the 12th largest in the world.[2]


    With over 4700 Indian companies listed & over 7700 scripts on the stock exchange,[3] it has a significant trading volume. The BSE

    SENSEX (SENSitive indEX), also called the "BSE 30", is a widely used market index in India and Asia. Though many other exchanges exist, BSE and

    the National Stock Exchange of India account for most of the trading in shares in India.

                                Contents

                                 [hide]




                1 Hours of operation


                2 History


                3 Services


      o                          3.1 Investor Services


      o                          3.2 BSE On-line Trading (BOLT)


      o                          3.3 BSEWEBX.co.in


      o                          3.4 Surveillance


      o                          3.5 BSE Training Institute (BTI)


                4 Timeline


                5 BSE indices


                6 Sensex correlation with emerging market indices


                7 Awards


                8 See also


                9 References


                10 External links

    [edit]Hours       of operation


              Session                     Timing




    Beginning of the Day Session -                   Trading Session 9:00 - 15:30




    Position Transfer Session        15:30 - 15:50




    Closing Session                  15:50 - 16:05
Option Exercise Session      16:05 - 16:35




Margin Session               16:35 - 16:50




Query Session                16:50 - 17:35




End of Day Session           17:35




The hours of operation for the BSE quoted above are stated in terms of the local time (i.e. GMT +5:30) in Mumbai (Bombay), India. BSE's normal

trading sessions are on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.[4]

[edit]History



The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers 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'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation

Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, 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-cry floor trading exchange, the Bombay Stock

Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition.

[edit]Services



BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It has a nation-wide reach with a presence in

more than 359 cities and towns of India. BSE has always been at par with the international standards. The systems and processes are designed to

safeguard market integrity and enhance transparency in operations. BSE is the first exchange in India and the second in the world to obtain an ISO

9001:2000 certification.


BSE continues to innovate. In recent times, it has become the first national level stock exchange to launch its website in Marathi and Hindi to reach

out to a larger number of investors. It has successfully launched a reporting platform for corporate bonds in India christened the ICDM or Indian

Corporate Debt Market and a unique ticker-cum-screen aptly named 'BSE Broadcast' which enables information dissemination to the common man on

the street.


In 2006, BSE launched the Directors Database and ICERS (Indian Corporate Electronic Reporting System) to facilitate information flow and increase

transparency in the Indian capital market. While the Directors Database provides a single-point access to information on the boards of directors of

listed companies, the ICERS facilitates the corporates in sharing with BSE their corporate announcements.


BSE also has a wide range of services to empower investors and facilitate smooth transactions:

[edit]Investor   Services
The Department of Investor Services redresses grievances of investors. BSE was the first exchange in the country to provide an amount of Rs.1

million towards the investor protection fund; it is an amount higher than that of any exchange in the country. BSE launched a nationwide investor

awareness programme- 'Safe Investing in the Stock Market' under which 264 programmes were held in more than 200 cities.

[edit]BSE   On-line Trading (BOLT)

BSE On-line Trading (BOLT) facilitates on-line screen based trading in securities. BOLT is currently operating in 25,000 Trader Workstations located

across over 359 cities in India.

[edit]BSEWEBX.co.in


In February 2001, BSE introduced the world's first centralized exchange-based Internet trading system, BSEWEBX.co.in. This initiative enables

investors anywhere in the world to trade on the BSE platform.

[edit]Surveillance


BSE's On-Line Surveillance System (BOSS) monitors on a real-time basis the price movements, volume positions and members' positions and real-

time measurement of default risk, market reconstruction and generation of cross market alerts.

[edit]BSE   Training Institute (BTI)

BTI imparts capital market training and certification, in collaboration with reputed management institutes and universities. It offers over 40 courses on

various aspects of the capital market and financial sector. More than 20,000 people have attended the BTI programmes just

[edit]Timeline



Following is the timeline on the rise and rise of the Sensex through Indian stock market history.


1830's Business on corporate stocks and shares 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


1978-79 Base year of Sensex, defined to be 100.


1986 Sensex first compiled[5] using a market Capitalization-Weighted methodology for 30 component stocks representing well-established companies

across key sectors.


30 October 2006 The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at 13,024.26 points, up 117.45 points or 0.9%. It

took 135 days for the Sensex to move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.


5 December 2006 The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points. It took 36 days for the Sensex to move from

13,000 to the 14,000 mark.


6 July 2007 The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005 points in afternoon trade. It took seven months for the

Sensex to move from 14,000 to 15,000 points.
19 September 2007 The Sensex scaled yet another milestone during early morning trade on September 19, 2007. Within minutes after trading began,

the Sensex crossed 16,000, rising by 450 points from the previous close. The 30-share Bombay Stock Exchange's sensitive index took 53 days to

reach 16,000 from 15,000. Nifty also touched a new high at 4659, up 113 points.


The Sensex finally ended with a gain of 654 points at 16,323. The NSE Nifty gained 186 points to close at 4,732.


26 September 2007 The Sensex scaled yet another height during early morning trade on September 26, 2007. Within minutes after trading began,

the Sensex crossed the 17,000-mark . Some profit taking towards the end, saw the index slip into red to 16,887 - down 187 points from the day's high.

The Sensex ended with a gain of 22 points at 16,921.


9 October 2007 The BSE Sensex crossed the 18,000-mark on October 9, 2007. It took just 8 days to cross 18,000 points from the 17,000 mark. The

index zoomed to a new all-time intra-day high of 18,327. It finally gained 789 points to close at an all-time high of 18,280. The market set several new

records including the biggest single day gain of 789 points at close, as well as the largest intra-day gains of 993 points in absolute term backed by

frenzied buying after the news of the UPA and Left meeting on October 22 put an end to the worries of an impending election.


15 October 2007 The Sensex crossed the 19,000-mark backed by revival of funds-based buying in blue chip stocks in metal, capital goods and

refinery sectors. The index gained the last 1,000 points in just four trading days. The index touched a fresh all-time intra-day high of 19,096, and finally

ended with a smart gain of 640 points at 19,059.The Nifty gained 242 points to close at 5,670.


29 October 2007 The Sensex crossed the 20,000 mark on the back of aggressive buying by funds ahead of the US Federal Reserve meeting. The

index took only 10 trading days to gain 1,000 points after the index crossed the 19,000-mark on October 15. The major drivers of today's rally were

index heavyweights Larsen and Toubro, Reliance Industries, ICICI Bank, HDFC Bank and SBI among others. The 30-share index spurted in the last

five minutes of trade to fly-past the crucial level and scaled a new intra-day peak at 20,024.87 points before ending at its fresh closing high of

19,977.67, a gain of 734.50 points. The NSE Nifty rose to a record high 5,922.50 points before ending at 5,905.90, showing a hefty gain of 203.60

points.


8 January 2008 The sensex peaks. It crossed the 21,000 mark in intra-day trading after 49 trading sessions. This was backed by high market

confidence of increased FII investment and strong corporate results for the third quarter. However, it later fell back due to profit booking.


13 June 2008 The sensex closed below 15,200 mark, Indian market suffer with major downfall from January 21, 2008


25 June 2008 The sensex touched an intra day low of 13,731 during the early trades, then pulled back and ended up at 14,220 amidst a negative

sentiment generated on the Reserve Bank of India hiking CRR by 50 bps. FII outflow continued in this week.


2 July 2008 The sensex hit an intra day low of 12,822.70 on July 2, 2008. This is the lowest that it has ever been in the past year. Six months ago, on

January 10, 2008, the market had hit an all time high of 21206.70. This is a bad time for the Indian markets, although Reliance and Infosys continue to

lead the way with mostly positive results. Bloomberg lists them as the top two gainers for the Sensex, closely followed by ICICI Bank and ITC Ltd.


6 October 2008 The sensex closed at 11801.70 hitting the lowest in the past 2 years.


10 October 2008 The Sensex today closed at 10527,800.51 points down from the previous day having seen an intraday fall of as large as 1063

points. Thus, this week turned out to be the week with largest percentage fall in the SenseX
18 May 2009 After the result of 15th Indian general election Sensex gained 2110.79 points from the previous close of 12173.42, a record one-day

gain. In the opening trade itself the Sensex evinced a 15% gain over the previous close which led to a two-hour suspension in trading. After trading

resumed, the Sensex surged again, leading to a full day suspension of trading.

[edit]BSE    indices

For the premier stock exchange that pioneered the securities transaction business in India, over a century of experience is a proud achievement. A lot

has changed since 1875 when 318 persons by paying a then princely amount of Re. 1, became members of what today is called Bombay Stock

Exchange Limited (BSE).


Over the decades, the stock market in the country has passed through good and bad periods. The journey in the 20th century has not been an easy

one. Till the decade of eighties, there was no measure or scale that could precisely measure the various ups and downs in the Indian stock market.

BSE, in 1986, came out with a Stock Index-SENSEX- that subsequently became the barometer of the Indian stock market.


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, Ahmedabad and Madras. The BSE National Index was renamed BSE-

100 Index from October 14, 1996 and since then, it is being calculated taking into consideration only the prices of stocks listed at BSE. BSE launched

the dollar-linked version of BSE-100 index on May 22, 2006.


With a view to provide a better representation of the increasing number of listed companies, larger market capitalization and the new industry sectors,

BSE launched on 27th May, 1994 two new index series viz., the 'BSE-200' and the 'DOLLEX-200'. Since then, BSE has come a long way in attuning

itself to the varied needs of investors and market participants. In order to fulfill the need for still broader, segment-specific and sector-specific indices,

BSE has continuously been increasing the range of its indices. BSE-500 Index and 5 sectoral indices were launched in 1999. In 2001, BSE launched

BSE-PSU Index, DOLLEX-30 and the country's first free-float based index - the BSE TECk Index. 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 on day-to-day basis of

all its major indices.


The values of all BSE indices are updated on real time basis during market hours and displayed through the BOLT system, 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. [1]

[edit]Sensex      correlation with emerging market indices

Sensex is significantly correlated with the stock indices of other emerging markets [6][7]

[edit]Awards




            The World Council of Corporate Governance has awarded the Golden Peacock Global CSR Award for BSE's initiatives in Corporate

      Social Responsibility (CSR).
           The Annual Reports and Accounts of BSE for the year ended March 31, 2006 and March 31 2007 have been awarded the ICAI awards

     for excellence in financial reporting.

           The Human Resource Management at BSE has won the Asia - Pacific HRM awards for its efforts in employer branding through talent

     management at work, health management at work and excellence in HR through technology
[edit]See   also


           Clause 49

           National Stock Exchange of India

           List of South Asian stock exchanges
[edit]References




     1.     ^ BSE - Key statistics


     2.     ^ World Federation of Exchanges (2007) "World Federation of Exchanges (2007)"


     3.     ^ BSE website, "Listing and Capital Raised"


     4.     ^ Market Hours, Bombay Stock Exchange via Wikinvest


     5.     ^ http://www.bseindia.com/about/abindices/bse30.asp


     6.     ^ http://finance.yahoo.com/echarts?s=%5EBSESN#chart1:symbol=^bsesn;range=my;compare=^gspc+eww+ewy;indicator=volume;charttype=line;crosshair=on;oh


             lcvalues=0;logscale=on;source=undefined


     7.     ^ http://www.reutersindia.net/ Asia Technical Analysis with Phil Smith

				
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