The Bombay Stock Exchange is based in Mumbai, India and was established in 1875. This makes the stock exchange the oldest in Asia. Today it boasts of superior communications, high volume of trades, and ultra-modern stock trading terminals. But there are some other interesting facts about BSE which you may not have known. Explore this post and check some interesting facts and secrets.
1. Initial trading was conducted under a Banyan Tree
Today, you see a huge building in Mumbai also known as Jeejeebhoy Towers. But the initial stages of this stock exchange weren’t very advanced. The native traders used to conduct trading under a Banyan Tree in the initial period. Eventually, the growth of the market has led to the landmark that you can see in Mumbai.
2. Largest number of listed companies
Bombay Stock Exchange is popular all over the world for the number of listed companies. The stock exchange has about 5 thousand companies listed, which is the largest in the whole world. But when it comes to active trading, the stock exchange allows on a maximum number of 3 thousand shares.
3. BSE wasn’t the original name
When started in 1875, the name of the stock exchange was not the Bombay Stock Exchange. It was “The Native Share & Stock Brokers’ Association”. The street in the location was named the “Dalal Street”. The new name was established later. However, the street where the stock exchange building is situated is still called the same.
4. Dutch East India Company traded the first stock
The very first stock trading in this stock exchange associated involved Dutch East India Company.
5. Most popular market index
In India, BSE Sensex is tracked the most. This is the most popular index of Bombay Stock Exchange providing comprehensive trading opportunities for the stock traders.
What is the importance of Bombay Stock Exchange?
Bombay Stock Exchange occupies a major chunk of the trading community in India. The traders get to trade securities here. With the availability of liquidity with the stock exchange, traders can conveniently transfer their securities into cash and their cash into securities.
The demand and supply chain of the stocks became much easier with the availability of Bombay Stock Exchange in India. The prices of the stocks are determined, which offers an economic harmony to the market.
Bombay Stock Exchange is a symbol of lawful and highly regulated trading association. The stock exchange offers the much-needed discipline to the process of stock trading.
With all that, Bombay Stock Exchange performs its part in growing the economy. The collected information about the listed companies allows the market to get more competitive, which offers the activeness that the economy deserves.
BSE – The Backbone of Indian economy
The Bombay Stock Exchange showcases a clear picture of a strong history and great evolution. Apart from being an important part of the economy, the interesting facts behind BSE explain the cultural importance of the stock exchange too. So, next time when you cross the Dalal Street in Mumbai, stop for a while and remember the economic and cultural importance of this landmark.