
When was the Bombay Stock Exchange (BSE) established, and what makes it significant in global markets?
The Bombay Stock Exchange (BSE), established in 1875, is Asia’s oldest stock exchange and the first in India. Originally known as "The Native Share & Stock Brokers' Association," it began under a banyan tree in Mumbai, where brokers gathered to trade stocks informally. Over time, it evolved into a formal exchange, playing a pivotal role in India’s financial growth. The BSE is significant in global markets as one of the world’s largest exchanges by market capitalisation, with over 5,000 listed companies. It introduced India’s premier stock index, the S&P BSE Sensex, which tracks 30 major companies and serves as a benchmark for the Indian economy. The BSE was also among the first in Asia to adopt electronic trading (1995), enhancing transparency and efficiency. Recognised by the World Federation of Exchanges, the BSE facilitates foreign investments, derivatives trading, and SME listings, strengthening India’s integration into global finance. Its resilience through economic shifts, from colonial rule to digitalisation, cements its reputation as a key player in emerging markets, influencing both regional and international investors.
Jun 16, 2025 01:58