What is the history of the Bombay Stock Exchange?


Quick Answer

The Bombay Stock Exchange Ltd., one of the biggest stock markets in the world, was founded as the Native Share and Stock Brokers' Association in 1875, according to Investopedia. Based in Mumbai, India, the market changed in 1995 from an open-trading floor market to an electronic system.

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Full Answer

Now known formally as the BSE, the market is Asia's first stock exchange and one of India's top exchange groups, according to BSE Ltd. Its shareholder base is extensive and includes partnerships with two other global exchanges, Deutsche Bourse and Singapore Exchange. The BSE lists more than 5500 companies, making it the largest in the world in the listings category.

Before the BSE was founded, the first broker markets in India were conducted informally under banyan trees near the town hall beginning in the 1850s, states BSE Ltd. As the market grew, the managers switched locations to accommodate the overflow of traders until the market found a permanent home in Dalal Street, also known as Brokers' Street. After gaining its independence, India passed laws to regulate the stock market, formalizing a full set of previously established rules and regulations. Some 23 new stock exchanges that were established after independence adopted BSE's best practices.

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