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Question
Write notes on Bombay Stock Exchange.
Solution
BOMBAY stock exchange limited is the oldest stock exchange in Asia with a rich heritage, it is popularly known as ‘BSE’. It was established as “The Native Shares Stock Exchange Association” in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the securities contracts (regulation) Act, 1956.
The Exchange is pivotal (essential) and plays pre-eminent role in the development of the Indian capital market. It is widely recognised. Earlier an Association of persons (AOP) but now the exchange is demutualised and corporatized entity incorporated under the provisions of the company’s act 1956. BSE received its certificate of incorporation on 8th August 2005, and certificate of commencement of business n 12th August 2005. The name has been changed to ‘Bombay Stock Exchange Limited
The operations and dealings of BSE were fully computerized and thus the auction (sale) system of share trading was replaced by screen based trading known as BOLT (Bombay on-line Trading System) as in other modern stock exchanges around the world. The BSE SENSEX (SENSITIVE index) also called the BSE 30, is widely used marked index in India and Asia.
BSE has introduced a centralized online trading system called BSE webx.co.in wherein investors can register themselves with brokers worldwide and undertake transactions.
BSE aims for the following:
- Securities transaction to be undertaken on fair basis.
- Protecting investors and members interest
- Mobilizing resources effectively from those who have it to those who need it.
- Establishing a market wherein buyers and sellers can come together effectively.
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