Bombay Stock Exchange

The roots of the Stock Exchange, Mumbai can be traced back to 1875, when the share and Stockbrokers Association (non-profit organisation) was established. BSE is the oldest stock exchange in Asia and most important stock exchange in Indian capital market. After liberalization, the stock exchange, Mumbai has witnessed a huge increase in trading and economic deregulation and prompted the stock exchange to improve its operations on par with the International standards. The Board of Governors of BSE comprises of 9 elected directors (one third retire every year by rotation) , an executive director, three government nominees, a Reserve Bank of India nominee, and five public representatives. A president, vice president and an Honorary treasurer are annually elected from among the elected directors by the governing board following the elections of the directors. The executive director works as the chief executive officer and is responsible for day to day administration of the stock exchange.

In May 1995, the Bombay Stock Exchange took a major step when it started order cum quote driven electronic trading for all the listed securities. The BOLT, BSE Online Trading system increased market transparency, liquidity and elimination of mismatches. In addition, BOLT also provides flexibility in systems by handling growing volumes of trade and increasers market activity. Since then, BSE is executing orders through computerized facility and orders are matched in less than one-tenth of a second. Trading hours have been increased from two hours under the open outcry to six hours. Processing speed coupled with extended trading hours has ensured that most orders get executed on daily basis. Beginning with screen based trading in May, 1995; the exchange has started providing direct online facility since September 1997. The bolt network, based on Very Small Aperture Terminal (VSAT) Technology, provides connectivity between members/Traders Work Station (TWS) and its trading and settlement system. The expansion of BOLT network was started by the exchange on August 30, 1997 with the prior approval granted by SEBI. Now the members of stock exchange are free to install their trading terminals to cities where there are no stock exchanges.