The Bombay Stock Exchange (BSE) is Asia’s oldest stock exchange and one of
the largest in the world. Established in 1875, it is headquartered in Mumbai, India. BSE plays a crucial role in India’s financial markets, facilitating stock trading, derivatives, mutual funds, and other financial instruments.
Key Highlights of BSE:
- Founded: 1875
- Location: Mumbai, India
- Benchmark Index: S&P BSE SENSEX (India’s most widely tracked stock market index)
- Regulator: Securities and Exchange Board of India (SEBI)
- Electronic Trading: Introduced in 1995, making trading faster and more efficient
- Listing: Over 5,000 companies, making it one of the world’s largest exchanges by number of listed firms
- Market Segments: Equity, Derivatives, Commodities, Debt Instruments, Mutual Funds, SME Platform
Major Indices on BSE
- SENSEX: The 30-stock index that represents India’s top companies
- BSE 100, BSE 200, BSE 500: Broader market indices
- BSE MIDCAP, BSE SMALLCAP: Represent mid and small-sized companies
BSE vs. NSE
- BSE is the oldest, while NSE (National Stock Exchange) was established in 1992.
- NSE has higher trading volumes due to its NIFTY 50 index and widespread derivatives market.
- BSE provides a better platform for SME listings, whereas NSE is dominant in derivatives trading.
How to Trade on BSE?
To trade on BSE, investors must:
- Open a Demat & Trading Account with a registered broker.
- Deposit funds and select stocks for buying or selling.
- Execute trades via online or offline platforms.
- Monitor market trends using SENSEX and company performance reports.
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