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July 9: The day BSE was created

BSE building at Dalal Street, Mumbai
BSE building at Dalal Street, Mumbai; Image credit

The Bombay Stock Exchange was formed on July 9, 1875. Also known as the BSE Ltd., it is the oldest stock exchange in Asia. It was started by four Gujaratis and a Parsi under a banyan tree in Mumbai’s Town Hall. Gradually more people joined, and the venue of the meeting place had to be changed. Finally in 1874, the group settled for a place on Dalal Street and in 1875, it became an official organisation with the name of ‘The Native Share and Stockbrokers Association’.

Sir Phiroze Jeejeebhoy was the chairperson of the company and dominated the stock market from 1946-1980. He was an influential man, and his vast knowledge and experience helped a great deal in critical times.

By 1956, the government of India recognised it under the Securities Contracts Regulation Act. And by 1986, it had developed the BSE Sensex, which made it easier for it to gauge the overall performance of the exchange. With the help of this index, BSE opened its derivatives markets and trading future contracts.

Since it began, BSE was an open floor trading exchange, but in 1995 it changed over to an electronic trading system. It took fifty days for this transition to take place. BSE On-line Trading or BOLT has the capacity to take eight million orders a day. It was the BSE that introduced the world’s first centralised exchange-based internet trading system which helps investors all over the world to use the BSE platform to trade.

Other services offered by BSE to capital market participants include risk management, education, market data services and clearing and settlement. The BSE is one of the best-performing stock markets and has won many awards for its integrity, market stimulation, innovation and competition.

Other exciting events on July 9 the world over:

1872: John F. Blondel patents the doughnut cutter.

1878: Henry Tibbe patents the corncob pipe.

1953: The first helicopter passenger service begins in New York City.

1969: The Royal Bengal Tiger is accepted by the Indian government as its national animal.

1991: After being expelled from IOC in 1970 for apartheid policies of racial discrimination, South Africa is readmitted into the Olympics.

2005: Danny Way became the first person to jump across the Great Wall of China without motorised aid. He rolled down a large ramp on skateboards and jumped across the Great Wall.

2007: The 787 Dreamliner, the new environmental friendly airplane’s plan shown by Boeing on this day. The plane was supposed to be made of more carbon fibre than aluminium and would produce twenty percent less carbon dioxide compared to other planes.

 

Text by Tasneem Dhinojwala

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