BSE Market & Its Role in Indian Economy - By: rds

The BSE Market in India came into existence with efforts from 22 professional stock brokers in the year 1875. Popularly known as Bombay Stock Exchange, this share market has evolved into the most efficient & productive stock market in Asia. Now, both the operational capacity & infrastructure of this market are at par with the global standard. The BSE market is working towards providing traders with multiple investment options together with channelizing funds from investors for expansion purpose of different institutions & organizations. But being highly unstable in nature, those investing in BSE market are at risk of losing money. It is extremely tough for the common man like us to predict the market movements. Hence it would be better to seek for the expert opinion before making investment in this highly fluctuating market place. The professional stock broker firms can really help traders to get the expert opinion.
The Stock Broker Association & Native Share with few hundred members took the initiative in forming the Bombay Stock Exchange. The BSE market got the permanent accreditation from the government of India in the year 1965. BSE & NSE, two of India’s national stock exchanges have played crucial in representing the Indian security market condition. In fact, BSE market is the first such stock exchange market in which around 5000 companies had registered for share trading at the time of starting itself.
Basically BSE issues registered company shares & stocks to general investors & raise funds from them. These funds are then used by the public companies or private companies registered with BSE market. As a result, all the traders who made investments in the company share the company’s loss as well as profit. Thus BSE market has become a financial platform facilitating investors to buy or sell company bonds & shares. SEBI otherwise known as Securities and Exchange Board of India is the statutory body of BSE which is formed to control & regulate the role of brokers, sub-brokers, investment advisors, portfolio managers & stock exchanges to name a few. BSE’s market movement indicator or index called BSE sensex is compiled on the basis of the share performance of the market’s 30 most sensible financial companies.
The BSE market transacts through two different financial markets called primary & secondary markets. In primary market the stocks are issued to the investors directly by the company & the company appointed stock brokers handle the transactions. In secondary market, stock brokers hold shares of companies listed on BSE market & issue them to investors for trading with the consent of the company. Thus BSE market deals with the financial complicacies of stock, shares, bonds etc & still helps in strengthening the Indian economy.

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