Question

State the main objectives of Bombay Stock Exchange.

Hint:

{Main Objectives:}

• Trading platform for securities
• Investor protection
• Liquidity and price discovery
• Market transparency and integrity
• Capital formation and economic growth

Answer 1

The Bombay Stock Exchange (BSE), established in 1875, is Asia's oldest stock exchange. Its main objectives are: Objective 1: To Provide a Trading Platform

• To provide an efficient and transparent platform for trading in equities, derivatives, debt instruments, mutual funds, and other securities.
• To facilitate buying and selling of securities through a well-organized exchange mechanism.

Objective 2: To Ensure Investor Protection

• To protect the interests of investors by ensuring fair practices and transparency in trading.
• To educate and guide investors about market risks and opportunities.
• To maintain a strong regulatory framework for dispute resolution and grievance handling.

Objective 3: To Promote Liquidity and Price Discovery

• To provide liquidity to investors by enabling them to convert securities into cash easily.
• To facilitate fair price discovery of securities through continuous trading based on demand and supply.

Objective 4: To Maintain Market Integrity and Transparency

• To ensure that all trades are conducted in a fair, transparent, and orderly manner.
• To enforce listing requirements and disclosure norms for companies.
• To prevent fraudulent and unfair trade practices.

Objective 5: To Contribute to Economic Growth

• To mobilize savings and channel them into productive investments.
• To facilitate capital formation for companies and contribute to the overall economic development of the country.

Objective 6: To Promote Corporate Governance

• To encourage listed companies to follow good corporate governance practices.
• To ensure timely disclosure of material information to the public.

Additional Information:

• BSE is the first stock exchange in Asia and the fastest stock exchange in the world with a trading speed of 6 microseconds.
• It provides a platform for trading in equities, currencies, derivatives, and mutual funds.
• BSE indices include SENSEX (30 largest and most actively traded stocks).