Mumbai India

History

The Bombay Stock Exchange (BSE), Asia’s oldest exchange, has a history dating back to 1850. Initially, a group of four Gujarati and one Parsi stockbroker would meet under banyan trees in front of Mumbai’s Town Hall. As the number of brokers grew, their meeting locations changed until they settled on Dalal Street in 1874. In 1875, they formally established “The Native Share & Stock Brokers Association,” which later became the Bombay Stock Exchange. Premchand Roychand played a key role in initiating the BSE in 1875.

On August 31, 1957, the Bombay Stock Exchange (BSE) achieved the distinction of being the first stock exchange officially recognized by the Indian Government under the Securities Contracts Regulation Act. In 1980, the BSE relocated to the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area. The pivotal development of the BSE SENSEX index occurred in 1986, providing a benchmark to gauge the overall performance of the exchange. In 2000, leveraging the SENSEX index, the BSE introduced its derivatives market, featuring the trading of SENSEX futures contracts. Subsequent years saw the introduction of SENSEX options and equity derivatives in 2001 and 2002, respectively, enhancing the BSE’s trading capabilities. The Securities and Exchange Board of India (SEBI) further shortened the settlement cycle from T+3 rolling settlement to T+2, effective April 1, 2003, as per its circular dated February 6, 2003.

Having originated as an open outcry floor trading exchange, the Bombay Stock Exchange underwent a transformative shift to an electronic trading system crafted by CMC Ltd in 1995. Remarkably, this transition to the automated BSE On-line trading (BOLT) platform, a screen-based system, was accomplished in just fifty days. BOLT boasted a robust capacity of handling 8 million orders daily. Furthermore, the BSE introduced an innovative centralized exchange-based internet trading system, BSEWEBx.co.in, facilitating global investors to engage in trading on the BSE platform. As of 2023, the BSE stands as the 8th largest stock exchange worldwide, commanding a total market capitalization exceeding US $3.25 trillion.

Starting from September 7, 2021, the Securities and Exchange Board of India (SEBI) authorized stock exchanges to implement the T+1 settlement cycle, effective January 1, 2022. The transition to T+1 Settlement commenced on February 25, 2022, with approximately 500 securities migrating each month. Notably, as of October 1, 2023, all scripts in India will follow the T+1 settlement cycle, making India the sole country to adopt T+1 settlement on a comprehensive scale. Under T+1, if a customer purchases shares on Monday, the shares will be credited to the customer’s demat account on Tuesday.

History

Established in 1992, the National Stock Exchange of India Limited (NSE) stands as the preeminent stock exchange in the country, situated in Mumbai. Pioneering the demutualized electronic exchange model, NSE played a pivotal role as the first exchange to introduce a modern, fully automated, screen-based electronic trading system in India. This system facilitated convenient trading for investors across the nation. Notably, on February 6, 2003, SEBI (Securities and Exchange Board of India) issued circular 03, which, effective April 1, 2003, reduced the settlement cycle from T+3 rolling settlement to T+2.

The National Stock Exchange (NSE) boasts a substantial market capitalization exceeding US$3.25 trillion, securing its position as the world’s 9th-largest stock exchange in 2023. Renowned globally, NSE’s flagship index, the CNX Nifty, consisting of 50 stocks, serves as a significant gauge for Indian capital markets, attracting investors worldwide. Notable domestic investors in NSE include prominent entities such as Life Insurance Corporation of India, State Bank of India, IFCI Limited, IDFC Limited, and Stock Holding Corporation of India Limited. Additionally, key global investors comprise Gagil FDI Limited, GS Strategic Investments Limited, SAIF II SE Investments Mauritius Limited, Aranda Investments (Mauritius) Pte Limited, and PI Opportunities Fund I.

Established based on government committee recommendations, the National Stock Exchange (NSE) features a diverse shareholding structure involving both domestic and global investors. NSE stands out by providing comprehensive trading, clearing, and settlement services encompassing equity, equity derivatives, debt, and currency derivatives segments. Pioneering electronic trading in India, NSE has seamlessly connected the entire investor base across the country. With a robust network comprising 2,500 VSATs and 3,000 leased lines spanning over 2,000 cities in India, NSE has been a trailblazer in introducing technological advancements. Furthermore, NSE played a pivotal role in the creation of the National Securities Depository Limited (NSDL), facilitating secure electronic holding and transfer of shares and bonds for investors.

NSE EMERGE represents NSE’s innovative initiative tailored for Small and Medium-sized Enterprises (SMEs) and startups in India. It provides these companies with the opportunity to be listed on NSE without the need for an Initial Public Offering (IPO). This platform serves as a valuable connection point for SMEs and startups to engage with investors, facilitating fundraising endeavors. Notably, by August 2019, the platform celebrated the listing of its 200th company, underscoring its significance in supporting the growth of emerging businesses.