The Bombay Stock Exchange (BSE) was started as the “Native Share & Stock Brokers Association” in 1875, thus making it the oldest share market in Asia. The BSE share market received government recognition in 1956. In 1995, the BSE market migrated from the floor-trading system of share trading to an online screen-based order driven system in 1995. The BSE share market was formed as an Association of Persons (AoP) but it is now a corporate entity registered under the Indian Companies’ Act (1956). As a result of this corporatization and demutualization, two of the world’s best stock exchanges – The Deutsche Borse and Singapore Exchange, became its strategic partners.
The number of listed companies on the BSE share market is over 4700 companies – the highest in the world. The primary index of the BSE market, i.e. the Sensex, is tracked worldwide. The Sensex is an index of 30 stocks representing 12 major sectors of the Indian economy. The tie-up with Deutsche Borse has made the Sensex available to share markets in Europe and America. The Sensex is calculated on a free float market capitalization method.