Finance and Accounts With Harshal

VISION

"Emerge as the premier Indian stock exchange by establishing global benchmarks"

BOMBAY STOCK EXCHANGE PROFILE

ADDRESS : PHIROZE JEEJEEHOY, DALAL STREET, MUMBAI 400001

PHONE : 91-22-22721233/4

TRADING HOURS : MON – FRI, 9:55 AM -3:30 PM (IST)

SECURITIES : STOCKS, BONDS, DERIVATIVES

TRADING : ELETRONIC

KEY STAFF : CHAIRMAN – JAGDISH KAPOOR,

CEO – RAJNIKANT PATEL

HISTORY

The Bombay Stock Exchange is the oldest exchange in Asia. It has its long history from 1850s and is still going. In 1850’s the 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 got shifted to Dalal Street in 1874. In 1875 it 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.

CORPORATISATION AND DEMUTUALISASTION OF BSE

Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporaterised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatisation and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI).Bombay Stock Exchange Limited received its Certificate of Incorporation on 8th August, 2005 and Certificate of Commencement of Business on 12th August, 2005. The 'Due Date' for taking over the business and operations of the BSE, by the Exchange was fixed for 19th August, 2005, under the Scheme. The Exchange has succeeded the business and operations of BSE on going concern basis and its recognition as an Exchange has been continued by SEBI.

With demutualization, the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. The Board comprises eminent professionals, representatives of Trading Members and the Managing Director of the Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries.

In terms of organisation structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broad-based. The day-to-day operations of the Exchange are managed by the Managing Director & CEO and a management team of professionals.

The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth.