The Bombay Stock Exchange (BSE) is one of the leading stock exchanges in India. It is a market for trading shares of public and private companies. It has a fully electronic trading system and is a member of BSE SIX (Bombay Stock Exchange Software Information eXchange). The BSE is a leading stock exchange in India and trades more than 80% of the total volume of equity traded in India. The BSE is owned by BSE Limited and has been operating since 18th September 1973. The BSE is the 27th-biggest stock exchange in the world and the largest in the Asian region in terms of market capitalization and trading volume. The BSE also serves as a venue for IPOs (Initial Public Offerings) for some of the biggest companies in India such as Tata Motors, Zee Entertainment, Bharti Airtel etc. The BSE is also a member of the World Federation of Exchanges (WFE) along with other leading stock exchanges such as NASDAQ, NYSE and LSE.
How does the BSE work?
The BSE is a fully electronic stock exchange. The BSE is a member of BSE SIX (Bombay Stock Exchange Software Information eXchange). The BSE has a fully-digitized system with an electronic platform for trading stocks and derivatives. The BSE has a centralized system for processing all trades. The BSE follows a continuous auction mechanism for trading. The BSE has a central matching engine that conducts matching and settlement of trades on a continuous basis. The BSE has a fully automated system for matching incoming orders and routing them to the correct market participants. The BSE has a fully automated system for conducting auctions.
Advantages of trading in BSE
- Instantaneous Trade Settlement - The BSE uses an electronic trading system that allows for real-time transactions and immediate settlement of trades. This allows for investors to see the current market prices and buy and sell shares without having to wait for the end of the trading day.- Easy Access to Information - The BSE has a centralized and fully digitized system for providing traders with real-time information on market prices and volumes. This allows investors to monitor trading activity and make informed investment decisions.- Low Cost - The BSE is a fully electronic stock exchange that allows for a low cost of trading. The BSE does not charge a commission on transactions and does not have listing fees.- Wide Range of Companies - The BSE trades in stocks of both listed and unlisted companies. The BSE also trades in derivatives such as options, futures and ETFs (Exchange Traded Funds).
Basics of Trading in BSE
- Registration - All companies that want to list their shares on the BSE must first register with the BSE. The BSE mandates that all new companies register with the BSE before they start issuing shares.- Getting Started - Once you have registered with the BSE, you can start trading in the BSE by opening a trading account.- Trading Platform - The BSE has a fully digitized system for trading stocks. You can use this system to trade stocks online.- Trading Process - The BSE has a centralized system for matching incoming orders and routing them to the correct market participants. The BSE has a fully automated system for conducting auctions.
Types of Trades in BSE
- Market Making - The BSE uses market making for certain types of trades. Market making is a type of trade where a broker or market maker simultaneously buys and sells a large quantity of a specific security. This helps to maintain the price of the security at a certain level and prevent it from going too high or too low.
Conclusion
The BSE is a fully electronic stock exchange that allows for real-time transactions and immediate settlement of trades. This allows for investors to see the current market prices and buy and sell shares without having to wait for the end of the trading day.