{"id":16115,"date":"2023-10-21T03:27:53","date_gmt":"2023-10-20T21:57:53","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=16115"},"modified":"2025-04-03T22:28:19","modified_gmt":"2025-04-03T16:58:19","slug":"bse","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/bse\/","title":{"rendered":"Bombay Stock Exchange (BSE)"},"content":{"rendered":"<h2>About Bombay Stock Exchange (BSE)<\/h2>\n<ul>\n<li>It is the\u00a0oldest and largest stock exchange\u00a0in India.<\/li>\n<li>It was\u00a0established in 1875 as the\u00a0Native Share and Stock Brokers&#8217; Association.\u00a0<\/li>\n<li>In 1957, the\u00a0Indian Government gave recognition to the BSE under the Securities Contracts Regulations Act.<\/li>\n<li>It is located on Dalal Street, Mumbai,\u00a0and lists over 6000 companies.<\/li>\n<li>BSE boasts a\u00a0variety of trading options in equity, fiat, debt instruments, derivatives, and\u00a0mutual funds.\u00a0<\/li>\n<li>In addition, it offers multiple trading services like clearing, settlement, risk management,\u00a0and investor awareness.\u00a0<\/li>\n<li>How does the BSE work?\n<ul>\n<li>The BSE\u00a0employs an advanced, electronically managed\u00a0trading portal to facilitate financial trades.\u00a0<\/li>\n<li>The exchange allows shareholders to place orders online without requiring external help from industry experts.\u00a0<\/li>\n<li>This process is possible through the\u00a0direct BSE market access offered by the portal.\u00a0<\/li>\n<li>Investors can trade on the BSE share market\u00a0via a brokerage firm. For this, they\u00a0need to pay a pre-determined price to the broker.<\/li>\n<li>The\u00a0direct investment option is only for\u00a0a section of\u00a0investors with bulky BSE transactions to their credit.\u00a0<\/li>\n<li>The BSE stock exchange\u00a0has the Bombay Online Trading Platform (BOLT)\u00a0to ensure a safe trading experience.\u00a0<\/li>\n<li>The BSE Sensex stocks follow a T+2 transaction settlement scheme\u00a0which implies that\u00a0each transaction on the exchange takes two days to complete processing.<\/li>\n<li>BSE market\u00a0complies with the regulatory guidelines imposed by SEBI to ensure investors\u2019 safety and capital market efficiency.\u00a0<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>What is Sensex?<\/h2>\n<ul>\n<li>Sensex is the\u00a0benchmark index of the BSE.<\/li>\n<li>It was\u00a0launched on January 1,\u00a01986,\u00a0as a\u00a0basket of 30 stocks\u00a0representing the country&#8217;s\u00a0largest, financially-sound companies\u00a0listed on the BSE.<\/li>\n<li>The term \u2018Sensex\u2019 is a blend of words \u2018Sensitive\u2019 and \u2018Index\u2019 and was\u00a0coined by stock market expert Deepak Mohini.<\/li>\n<li>The Sensex\u00a0reflects the movements in the Indian stock market. It is considered the benchmark index of the Indian stock market.<\/li>\n<li>How is the Sensex calculated?\n<ul>\n<li>It was calculated\u00a0based on the market capitalisation, or \u201cFull Market Capitalisation\u201d,\u00a0when it was launched but\u00a0shifted to a &#8220;Free-float Market Capitalisation&#8221;\u00a0methodology\u00a0from\u00a0September 1,\u00a02003.<\/li>\n<li>Free-float is the proportion of total shares issued by the company that is readily available for trading to the general public. It\u00a0does not take into account promoters\u2019 holdings, government holdings, and other shares that will not be available in the market for trading in the ordinary course of events.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>What are Derivatives?<\/h2>\n<ul>\n<li>A derivative is a\u00a0contract between two parties which\u00a0derives its value\/price from an underlying asset.<\/li>\n<li>The commonly used\u00a0assets are\u00a0stocks, bonds, currencies, commodities and\u00a0market indices.<\/li>\n<li>These instruments\u00a0allow investors and traders\u00a0to speculate on the price movements\u00a0of the\u00a0underlying asset without owning it directly.<\/li>\n<li>The value of the underlying assets keeps changing\u00a0according to market conditions. The\u00a0basic principle behind entering into derivative contracts\u00a0is to earn profits by speculating on the value of\u00a0the underlying asset in future.<\/li>\n<li>Derivatives serve various\u00a0purposes,\u00a0including hedging against risks, providing leverage, and facilitating price discovery.<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What are debt instruments?<\/h3>\n<p>Debt instruments are any form of debt used to raise capital for businesses and governments. There are many types of debt instruments, but the most common are credit products, bonds, or loans. Each comes with different repayment conditions, generally described in a contract.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.cnbctv18.com\/news\/bse-increases-transaction-charges-on-the-derivative-segment-from-november-1-18117521.htm\" target=\"_blank\" rel=\"nofollow noopener\"><u>BSE increases transaction charges on the derivative segment from November 1<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bombay Stock Exchange is the oldest and largest stock exchange in India.<\/p>\n","protected":false},"author":5,"featured_media":16116,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-16115","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=16115"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/16115\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/16116"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=16115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=16115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=16115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}