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A Comprehensive Strategic Analysis of Bombay Stock Exchange Limited (BSE): Business Model, Market Position, and Growth Prospects (Poornaprajna International Journal of Teaching & Research Case Studies (PIJTRCS))

Research paperPoornaprajna International Journal of Teaching & Research Case Studies (PIJTRCS)August 202639 pages59 min readDisha Devadiga, P. S. AithalOriginal source
Key number
1875
Establishment year p.3
Largest segment
NSE
Primary market competitor in liquidity p.18

Summary

  • Bombay Stock Exchange Limited was established in 1875 as The Native Share and Stock Brokers' Association and later converted into a shareholder-owned entity in 2005.p.8
  • BSE launched the SENSEX in 1986, which served as India's first widely recognized benchmark stock market index.p.13
  • In 1995, BSE implemented the BSE On-Line Trading (BOLT) system, shifting operations from open-outcry to electronic order-driven trading.p.13
  • BSE established the BSE SME Exchange in 2012 to support capital raising for small and medium enterprises.p.13
  • India International Exchange (India INX) was launched in 2017 at GIFT City to support international trading in financial products.p.13

Key insights

  1. BSE shifted from a broker-owned mutual association founded in 1875 to a demutualized, shareholder-owned corporate structure in 2005.p.8
  2. The adoption of the BOLT trading platform in 1995 replaced floor-based open-outcry trading with automated electronic matching.p.13
  3. BSE StAR MF functions as a major electronic platform for mutual fund transactions across India.p.17
  4. Indian Clearing Corporation Limited (ICCL) manages clearing, settlement, and counterparty risk management for BSE.p.17
  5. The National Stock Exchange (NSE) maintains higher market share and trading liquidity in cash-market equities and derivatives compared to BSE.p.18
  6. India INX provides BSE with cross-border trading infrastructure inside the IFSC at GIFT City.p.14
  7. Post-demutualization governance changes among exchanges resulted in reduced board sizes and increased appointment of experienced directors.p.8

Topics and entities

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