It all started when 22 stockbrokers gathered under a banyan tree near the Town Hall in south Bombay back in 1855. However, the BSE was officially recognised as a stock exchange by the Indian government only in 1875. The rest, as they say, is history. And it has a postage stamp to show for it.
The Bombay Stock Exchange (BSE), housed in the iconic 28-storey Phiroze Jeejeebhoy Towers, is the first-ever stock exchange to be set up in Asia. The stock exchange was established on July 9, 1875, after a resolution was passed by a group of Bombay brokers to form an association to protect the character, status and interest of native shares and stock brokers. The 147-year-old exchange, which started functioning from under a banyan tree near the Town Hall in south Bombay, shifted to the PJ Towers only in 1980.
In August 1957, the BSE became the first stock exchange to be recognised by the Indian government under the Securities Contracts Regulation Act.
Over the past 147 years, the BSE has had an interesting and eventful journey in the history of India's securities market. Here’s a look at the history and key milestones of the stock exchange.
History of BSE
While the founding of the BSE is credited to cotton king, or the Big Bull Premchand Roychand, its history dates back to 1855, when 22 stockbrokers gathered under a banyan tree near the Town Hall. Over the next 10 years, the brokers shifted from Town Hall to the banyan trees at Meadows Street as their tribe increased. After moving from place to place to accommodate the growing number of brokers, the peripatetic group finally started functioning from a permanent place in Dalal Street in 1874. The following year, on July 9, 1875, the brokers formed an organisation called The Native Share & Stock Brokers Association.
1887: The Native Share and Stock Brokers' Association, which was formed in 1875, is formally constituted.
1921: A clearing house is started by the Bank of India.
1957: BSE gets permanent recognition from the Indian government under Securities Contracts (Regulation) Act (SCRA).
1986: The country's first equity index, S&P BSE SENSEX, is launched with the Base Year 1978-79 =100
1987: The Investor's Protection Fund is introduced.
1989: The BSE Training Institute (BTI) is inaugurated.
1990: For the first time, the S&P BSE SENSEX closes above 1000 points.
1992: S&P BSE SENSEX breaches the 4000-mark.
1992: SEBI Act and the Securities Appellate Tribunal (SAT) are established.
1995: BSE starts a screen-based trading system called the Bombay Online Trading System (BOLT).
2000: SEBI grants approval to BSE to start derivative trading and settlement in SEBI-approved derivative contracts.
2001: The BSE TECK Index is launched.
2007: BSE ropes in Singapore Exchange and Deutsche Borse as strategic partners. The Singapore Exchange acquires 5 percent stake in BSE for Rs 189 crore. The German bourse, Deutsche Borse, also picked up a similar 5 percent stake in BSE for Rs 189 crore.
2009: BSE launches the StAR MF — Mutual Fund trading platform.
2011: The name of the bourse is changed to the one used now ‘BSE Limited.’
2013: BSE launches the currency derivatives segment.
2015: Along with the Confederation of Indian Industry CII and Indian Institute of Corporate Affairs, BSE launches a corporate social responsibility platform 'Sammaan.'
2016: To commemorate 140 years of the exchange, Asia’s oldest stock exchange gets its own postage stamp.
2020: Frankfurt-based Deutsche Boerse exits BSE by selling its remaining 1.75 percent stake for Rs 44 crore through an open market transaction. The bourse sold 2.67 percent equity of BSE Ltd a day earlier for Rs 65.88 crore.