Bombay Stock Exchange facts for kids

BSE Limited, also known as the Bombay Stock Exchange (BSE), is a very important stock exchange in India. It is located on Dalal Street in Mumbai. Dalal Street is often called the "Wall Street of Mumbai," just like Mumbai is sometimes called the "New York of India."

The BSE was started in 1875 by a cotton merchant named Premchand Roychand. This makes it the oldest stock exchange in Asia. It is also the tenth oldest stock exchange in the whole world! As of January 2024, the BSE is the 8th largest stock exchange in the world. It handles a huge amount of money, more than US$4.5 trillion.

History of the BSE

The Bombay Stock Exchange was founded by Premchand Roychand in 1875. Before it had a permanent home, stock brokers used to meet in different places.

• In the 1850s, five stock brokers met under a Banyan tree in front of Mumbai Town Hall.
• About ten years later, they moved to other banyan trees at a different street corner.
• As more and more brokers joined, they had to keep moving to bigger spots.
• Finally, in 1874, the brokers found a permanent place they could call their own.
• In 1875, this group of brokers officially became an organization called "The Native Share & Stock Brokers Association."

The BSE joined the United Nations Sustainable Stock Exchange initiative in September 2012. This means it works to support sustainable and responsible investing.

In 2016, BSE started India INX. This was India's first international exchange. In October 2018, BSE also became the first stock exchange in India to offer trading in gold and silver.

On May 19, 2007, the BSE changed its structure to become a more modern company. It was then listed on another stock exchange, the NSE, on February 3, 2017.

Market Facts

• A report found that only about 3% of people in India invest in the stock market. This is much less compared to countries like the United States (27%) or China (10%).
• As of April 2018, about 60 million individual investors in India had put their savings into stocks. They did this either by buying stocks directly or through special investment groups called mutual funds.
• The state of Maharashtra has the most investors in India. Over 15 million people, or 21% of all registered investors with the BSE, are from Maharashtra.
• Other states with many investors include Gujarat (8.6 million), Uttar Pradesh (5.3 million), Tamil Nadu (4.3 million), and Karnataka (4.2 million).
• Together, these five states make up more than half (53%) of all registered investors in India.

BSE from 1990 to 2020 (Indices S&P BSE Sensex)

Indian stock market indices S&P BSE 500 (1999 to 2020)

Chart of S&P BSE SENSEX monthly data from January 1991 to May 2013

BSE Sensex from December 1979 to May 2012 (daily closings)

See also

In Spanish: Bolsa de Valores de Bombay para niños

Images for kids

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  Bombay Stock Exchange logo until June 2023