Context: The Bombay Stock Exchange (BSE), Asia’s oldest stock exchange, marked a historic milestone as it celebrated its 150th anniversary, and Finance Minister Nirmala Sitharaman was the chief guest at the celebration.
Meaning of the context: Nirmala Sitharaman lauded the Bombay Stock Exchange’s (BSE) technological advancements and its vital role in India’s economic development.
Learning Zone:
- Founded in 1875 as the “Native Share & Stock Brokers’ Association” in Mumbai, BSE is India’s first stock exchange.
- BSE evolved from informal trading to a modern, technology-driven exchange, symbolizing India’s financial growth.
Structure and Governance:
- A corporate entity since 2005, listed on the National Stock Exchange (NSE) in 2017.
- Regulated by the Securities and Exchange Board of India (SEBI), ensuring transparency and investor protection.
Key Functions:
- Facilitates trading in equities, derivatives, mutual funds, and bonds, with over 5,500 listed companies (2025).
- Hosts the BSE SENSEX, India’s benchmark index of 30 major companies, reflecting market trends.
- Processes 1,500 crore orders daily and 14 lakh orders per second, with transactions completed in under 200 microseconds.
Recent Achievements:
- Pioneered T+1 settlement, making India’s markets faster than many global counterparts.
- Launched the BSE 150 Index during the 150th anniversary, tracking the top 150 companies by market capitalization and liquidity.
Economic Significance:
- Mirrors India’s economic growth (5th largest economy, $3.5 trillion GDP, 2025), with a market capitalization of ?450 lakh crore (2025).
- Drives inclusivity through retail participation (120 million investors, 2025) and domestic institutional investors (DIIs), with ?6.1 lakh crore inflows in FY24.
- Supports capital formation for industries, MSMEs, and startups, aligning with schemes like Make in India.
Source : News On AIR