What is Bombay Stock Exchange?
The Bombay Stock Exchange (BSE), also known as the Stock Exchange, Mumbai, is India's oldest and largest stock exchange. Established in 1875, it is located at Dalal Street in Mumbai. With over 6,000 listed companies and a market capitalization of $2.5 trillion, it is one of the world's top 10 exchanges by total market capitalization. It is an integral part of the Indian financial system and provides liquidity to investors through the listing and trading of securities such as bonds, stocks, and derivatives.
History of the Bombay Stock Exchange
The history of the Bombay Stock Exchange dates back to 1875 when Premchand Roychand, a small but successful businessman, started gathering brokers around him under a banyan tree at Dalal Street in what was then known as Bombay. It began as “The Native Share & Stock Brokers Association”, later renamed as the Bombay Stock Exchange and informally known as "Dalal Street". Its current location is at Dalal Street which was named after Roychand’s brokerage firm – the Dalal Street Investment Corporation.
The exchange expanded quickly, due to its proximity to major business centers such as Mumbai, Gujarat, and Madras. By 1957 it had become so large that the Indian government recognized it as India’s first stock exchange and given official trading rights. This recognition solidified its legitimacy and attracted even more investors and traders.
Over the years, the Bombay Stock Exchange has been at the center of India's financial markets, housing a wide variety of stocks from both public sector companies and private businesses alike. It is currently one of Asia's leading exchanges in terms of market capitalization and the number of listed companies.
Over time, the exchange has endured numerous crises and evolvements, but today it continues to remain a financial hub for the nation of India.
How to invest in BSE?
To begin investing in BSE, start with locating a broker or online trading company that deals with BSE stocks. Take the time to compare fees, commissions, and benefits to ensure you are getting the best deal for your investment. Research individual stocks you want to invest in, making sure you understand the nature of each one and the market dynamics affecting it. Once you have developed an appropriate portfolio strategy and identified potential stocks for investment, buy shares on BSE through your broker or online platform.