Bombay Stock Exchange (BSE)

BSE Ltd (formerly the Bombay Stock Exchange Ltd) was established in 1875 and was Asia's first stock exchange. It was granted permanent recognition under the Securities Contracts (Regulation) Act, 1956, and has contributed to the growth of the corporate sector by providing a platform for raising capital. Originally set up as the Native Share and Stock Brokers' Association in 1875, it had its own rules and regulations even before formal legislation was enacted. It is now a corporate entity with a broad shareholder base, and has the following objectives:

a. To provide an efficient and transparent market for trading in equity, debt instruments, derivatives and mutual funds.

b. To provide a trading platform for the equities of small and medium enterprises.

c. To ensure active trading and safeguard market integrity through an electronically-driven exchange.

d. To provide other services to capital-market participants, such as risk management, clearing, settlement, market data and education.

e. To conform to international standards.

Besides its nationwide presence, the BSE has a global reach. It has established a capital-market institute, the BSE Institute Ltd, which provides education and vocational training in financial markets. The exchange has about 5,000 companies listed and the largest market capitalisation in India.

Some common stock market terms

• Bourses — another word for the stock market.
• Bulls and Bears — these refer not to animals but to market sentiment: a bullish phase is a period of optimism and a bearish phase a period of pessimism on the bourses. …