Dive into India’s economics and right into the Bombay Stock
Exchange (BSE). If you’ve ever considered investing abroad, this might
be worth checking into. India has the fifth largest economy in the
world, the third largest Gross Domestic Product (GDP), and is in the
running with China to have the world‘s largest population.
The Bombay Stock Exchange is India’s largest and the oldest stock
exchange in Asia. It was established in 1875 and remains one of the
most important markets today. The BSE was originally opened in Bombay
with the help of well known businessman of the time, Premchand
Roychand, founder of the Bank of Bombay. The BSE was the first stock
exchange in India to be recognized by the Government under the
Securities Regulation Act of 1956.
The exchange currently trades well over 6000 and leads the pack with
the majority of the trading amongst India’s other 23 stock exchanges.
Per the Center for Monitoring Indian Economy the Bombay Stock Exchange
Sensex has more than quadrupled in the last ten years and continues to
steadily climb the charts.
The BSE is open to foreign investors upon the guidelines of the
Securities and Exchange Board of India and registration with the
Reserve Bank of India. The Investor Protector Fund is also in place to
help ward against default members.
The Bombay Stock Exchange Sensex runs from 1979 forward and has gained
wide acceptance with its’ ability to tap into market trends and
movements. The Sensex is updated every 15 seconds during market hours
and has a base value of 100. The BSE Sensex tracks a sample of 30
stocks based on the Free Float Methodology, the same methodology used
for the Dow Jones. The quantitative criteria that the selection of
stocks for the Sensex are based on include market capitalization,
liquidity, continuity, industry representation, and listed history.
The BSE boasts many other indexes such as the BSE Informational
Technology index and the BSE Capital Goods index. Other popular indexes
on the exchange are BSE100,BSE200, BSE500, BSE MIDCAP, BSE SMLCAP, BSE
AUTO, BANKEX, BSE CD (Consumer Durables), BSE METAL, BSE Oil, among
others.
The stock exchange is governed by a Chief Executive Officer, currently
Mr. Rajnikant Patel, along with nine elected officials.
The Bombay Stock Exchange was originally located in Bombay, now Mumbai,
in the state of Maharashtra. The BSE can be found on Dalal Street, the
financial area of Mumbai. The BSE observes the following holidays:
Bakri-Id, Republic Day, Good Friday, Ambedkar Jayanti, Independence
Day, Ganesh Chaturthi, Dasera, Diwali (Laxmi Poojan), Diwali
(Bhaubeej), and Guru Nanak Jayanti.
India is wide open for growth and expansion in all business classes and
makes this market something to keep your eye on for the
future.
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