Bombay Stock Exchange was founded by
Premchand Roychand in 1875.[14] While BSE Limited is now synonymous with Dalal Street, it was not always so. In the 1850s, five stock brokers gathered together under a Banyan tree in front of Mumbai Town Hall, where Horniman Circle is now situated.[15] A decade later, the brokers moved their location to under the banyan trees at the junction of Meadows Street and what was then called Esplanade Road, now Mahatma Gandhi Road. With a rapid increase in the number of brokers, they had to shift places repeatedly. At last, in 1874, the brokers found a permanent location, the one that they could call their own. The brokers group became an official organization known as "The Native Share & Stock Brokers Association" in 1875.[16]
On 12 March 1993, a car bomb exploded in the basement of the building during the
1993 Bombay bombings.[17] The BSE is also a Partner Exchange of the
United Nations Sustainable Stock Exchange initiative, joining in September 2012.[18] BSE established India
INX on 30 December 2016. India INX is the first international exchange of India.[19] BSE became the first stock exchange in the country to launch commodity derivatives contract in gold and silver in October 2018.[20]
BSE was
demutualized and corporatized on 19 May 2007, pursuant to the BSE (Corporatization and Demutualization) Scheme, 2005 notified by
SEBI.[21][22] It was listed on NSE on 3 February 2017.[23][24][a]
Market statistics
The
Bimal Jalan Committee report estimated that barely 3% of India's population invested in the stock market, as compared to 27% in the
United States and 10% in
China.[26][27][28][29]
The Economic Times estimated that as of April 2018, 6 crore (60 million) retail investors had invested their savings in stocks in India, either through direct purchases of equities or through mutual funds.[30]
Morgan Stanley has noted that the Indian stocks have been through four
bear markets in 25 years, or since foreign investors became actively involved with Indian equities.[31]The Economic Times estimate that the Indian stock market sees a bear market on average once every 3 years, similar to the US market. It uses the Nifty 50 index as a reference point and identifies eight 20% drops in the last 25 years.[32]
According to
SEBI, during FY 2022–23, 73% of
mutual fund units were redeemed within 2 years of investment. Only investments in 3% of the units continued for more than 5 years.[33][34]
Another study conducted by the SEBI, approximately 89% of individual
stock traders in the equity Futures & Options (F&O) segment incurred losses during the financial year 2021-22.[35][36][37]
Maharashtra accounts for the most number of investors. More than 15 million or 21 percent of registered investors with the BSE are from the state, followed by
Gujarat (8.6 million),
Uttar Pradesh (5.3 million),
Tamil Nadu (4.3 million) and
Karnataka (4.2 million). These five states account for more than half or 53 percent of all the registered investors.[42][43]
BSE from 1990 to 2020 (Indices S&P BSE Sensex)
Indian stock market indices S&P BSE 500 (1999 to 2020)
Chart of S&P BSE SENSEX monthly data from January 1991 to May 2013
BSE Sensex from December 1979 to May 2012 (daily closings)
This section needs expansion. You can help by
adding to it. (January 2024)
SCAM 1992
The Harshad Mehta scandal was a financial fraud that took place in India in the early 1990s. Harshad Mehta was a stockbroker who used a loophole in the banking system to siphon off funds from inter-bank transactions and invest them in the stock market.
^SEBI Regulation 45(1) of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 prohibits self-listing of a stock exchange in India.[25]
Kochhar, S. (2015). BSE: Journey of an Aspiring Nation. Skoch Media.
ISBN978-8-1929-1725-2.
Ramkumar, R.R. and Selvam, M. (2014). Efficiency of BSE Sectoral Indices in India: A Study with Special Reference to Bombay Stock Exchange Ltd in India. Lap Lambert Academic Publishing GmbH KG.
ISBN978-3-6592-1130-0.{{
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Kaur, H. (2002). Stock Market Volatility in India. Deep & Deep Publications.
ISBN978-8-1762-9361-7.
Basu, D. and Dalal, S. (1993). The Scam: Who Won, who Lost, who Got Away. UBS Publishers' Distributors.
ISBN978-8-1859-4410-4.
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Cummings, L. (2014). Rethinking the BSE Crisis: A Study of Scientific Reasoning under Uncertainty. Springer Netherlands.
ISBN978-9-4017-8491-7.
Razdan, A. Scaling in the bombay stock exchange index. Pramana - J Phys 58, 537–544 (2002).
doi:
10.1007/s12043-002-0063-y
Goel, A., Tripathi, V. and Agarwal, M. (2021), "Market microstructure: a comparative study of Bombay stock exchange and national stock exchange", Journal of Advances in Management Research, Vol. 18 No. 3, pp. 414-442.
doi:
10.1108/JAMR-06-2020-0109
Krishnamurti, Chandrasekhar and Eleswarapu, Venkat R., Liquidity, Stock Returns and Ownership Structure - An Empirical Study of the Bombay Stock Exchange (March 31, 1994).
IIM Bangalore Research Paper No. 65, Available at
SSRN2181543 or
doi:
10.2139/ssrn.2181543
Sumon Kumar Bhaumik. “Stock Index Futures in India: Does the Market Justify Its Use?”
Economic and Political Weekly, vol. 32, no. 41, 1997, pp. 2608–11.
JSTOR4405950. Accessed 13 Feb. 2024.
Ganeshaiah, K. N. “Has the Behaviour of the Stock Market Been Affected by the Scam? — A Statistical Analysis.”
Current Science, vol. 63, no. 7, 1992, pp. 345–47.
JSTOR24095453. Accessed 13 Feb. 2024.
Nair, S. (2021). Bulls, Bears and Other Beasts (5th Anniversary Edition): A Story of the Indian Stock Market. Pan Macmillan.
ISBN978-9-3907-4257-8.