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MarketsKnowledge BaseBSE
Indian Stock Market BasicsBeginner 7 Min Read

What is the BSE (Bombay Stock Exchange)? A Complete Guide

Explore the Bombay Stock Exchange (BSE), Asia's oldest stock exchange. Learn about its rich history on Dalal Street, the Sensex index, and its trading mechanisms.

Year Founded
1875
Asia's oldest stock exchange
Benchmark
Sensex 30
S&P BSE Sensex
Listed Companies
5,000+
Highest in India
Trading System
BOLT
BSE On-Line Trading
Indian Stock Market BasicsBeginner 7 Min Read

What is the BSE (Bombay Stock Exchange)? A Complete Guide

Explore the Bombay Stock Exchange (BSE), Asia's oldest stock exchange. Learn about its rich history on Dalal Street, the Sensex index, and its trading mechanisms.

BSEExchangesSensexDalal Street

Essential Market Insights

1The BSE is India's first and largest securities market by the number of listed companies, and Asia's oldest stock exchange (est. 1875).
2Located on Dalal Street in Mumbai, BSE has over 5,000 listed companies — the highest in India.
3The flagship index is the S&P BSE Sensex, tracking 30 of the largest and most financially sound companies.
4BSE uses the BOLT (BSE On-Line Trading) system for fully automated electronic trading.
5BSE is famous for its SME platform, enabling small and micro-cap companies to raise public capital.

Quick Reference Table

FeatureBSE (Bombay Stock Exchange)
Year Established1875 (Asia's Oldest)
LocationPhiroze Jeejeebhoy Towers, Dalal Street, Mumbai
Benchmark IndexS&P BSE Sensex (30 Companies)
Trading SystemBOLT (BSE On-Line Trading)
Total Listed Companies5,000+ (Highest in India)
Primary Depository PartnerCDSL (Central Depository Services Ltd)

Historical Timeline

1850s
Informal Trading Begins
Stockbrokers gather under a banyan tree in front of Mumbai's Town Hall to trade informally.
1875
BSE Established
Officially established as "The Native Share & Stock Brokers' Association."
1986
Sensex Launched
The S&P BSE Sensex is developed, creating India's first equity market index.
1995
Electronic Trading (BOLT)
BSE transitions from open outcry (trading ring) to BOLT (BSE On-Line Trading), a fully automated system.
2017
BSE Lists Itself
BSE becomes the first listed stock exchange in India.

1. The History of Asia's First Stock Exchange

The Bombay Stock Exchange (BSE) was established in 1875 by Premchand Roychand as "The Native Share & Stock Brokers' Association." It is Asia's oldest stock exchange, situated on the iconic Dalal Street in South Mumbai.

Over its 150-year history, the BSE has expanded to house over 5,000 listed corporations—making it the exchange with the largest number of listed companies anywhere in India.

2. The BOLT Engine & SME Platform Leadership

In 1995, BSE phased out its traditional floor-based trading ring in favor of BOLT (BSE On-Line Trading), a high-speed electronic order-matching system with microsecond order execution capabilities.

BSE is also famous for its BSE SME platform, designed specifically to help small and medium enterprises (SMEs) access public equity capital without the steep listing capitalization barriers of major mainboard boards.

Frequently Asked Questions

Showing 6 of 8 FAQs
The BSE generally has flexible paid-up capital requirements compared to the NSE, making it easier for smaller companies (SMEs and micro-caps) to list and raise public capital.
Explore more in the Indian Stock Market Basics series
Deep-dive into 10 comprehensive guides on Indian stock market fundamentals.
Browse All Guides

Indian Stock Market Basics — Knowledge Guides

10 Deep-Dive Guides
Stock MarketBeginner
What is the Stock Market? The Ultimate Guide for Indian Beginners
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Share MarketBeginner
What is the Share Market? A Complete Overview
6 Min ReadRead
NSEBeginner
What is the NSE? India's Leading Stock Exchange Explained
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BSEBeginner
What is the BSE (Bombay Stock Exchange)? A Complete Guide
7 Min ReadCurrent
SensexBeginner
What is Sensex? The Barometer of the Indian Economy
8 Min ReadRead
Nifty 50Beginner
What is Nifty 50? The Ultimate Guide to India's Benchmark Index
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India VIXIntermediate
What is India VIX? Decoding the Market's Fear Gauge
8 Min ReadRead
Market CapBeginner
What is Market Capitalization? The Ultimate Guide for Beginners
7 Min ReadRead
Free FloatIntermediate
What is Free Float? Understanding Publicly Tradable Shares
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Stock MarketBeginner
How the Stock Market Works: The Engine of Wealth Creation
10 Min ReadRead