A Guide to the Ins and Outs of BSE (Bombay Stock Exchange)

A Guide to the Ins and Outs of BSE (Bombay Stock Exchange)

11 July, 2023

Stock market exchanges are crucial to a country's economy and financial setup. India houses 23 stock exchanges—the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) being the most popular.

Established in 1875, BSE is India's first stock exchange. It is also one of Asia's oldest stock exchanges. More than 6,000 companies are listed with BSE, making it one of the largest stock exchanges in the world. But what is BSE in the share market exactly? And how does BSE work? Let's find out!

What is the BSE?

As the name suggests, the Bombay Stock Exchange (BSE) is a stock exchange that facilitates the buying and selling of the listed companies. It is a marketplace where the financial securities of the listed companies are traded over time.

How Does BSE Work?

Just like all other stock exchanges, BSE also works as per the rules and regulations laid down by the Securities and Exchange Board of India (SEBI).

The entire trading process at BSE happens digitally with the help of an electronic trading system. However, to execute your trading orders as a trader or investor, you need a brokerage house that does it on your behalf.

This is because individuals do not have direct investment access to the stock exchange, except for some preferential individuals who make large investments.

Regarding the settlement of trading orders, that happens as per the T + 1 settlement period under which the orders are processed and reflected in respective demat accounts within 24 hours of the trade.

What are the Benefits of Getting Listed with the Bombay Stock Exchange?

You can enjoy the following benefits by listing your company with the Bombay Stock Exchange (BSE):

  1. Easy Access to Funds: By listing your company, you can easily raise public funds, which can be utilised for the organisation's expansion plans or business development, etc.

  2. Boosts the Company's Reputation: When you list your company on BSE, one of the most popular stock exchanges in the country, you increase the company's brand visibility. This boosts the company's reputation and financial status.

  3. Helps Attract Investors: All the companies listed on BSE need to follow the rules and regulations laid down by the market regulator SEBI. Moreover, the company stays under strict legal supervision. This favours the company when seeking investors as it validates its financial accuracy.

  4. Guarantee of Collateral: Another benefit of listing your company with BSE is that it allows you to use your listed shares as collateral while seeking loans. Financial institutions prefer equity shares for collateral as they could be easily liquidated.

You can easily open a demat account with HDFC Bank to invest or trade in these stocks. HDFC Bank Demat Account is a 2-in-1 account where your existing HDFC Bank Savings Account gets linked and investment becomes seamless.

Read more on the features of the Demat Account here

Are You Looking To Open A Demat Account? Click here To Get Started

*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in securities market are subject to market risks, read all the related documents carefully before investing.

Looking To Open A Demat Account? Click here

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