REPORT

ON

INDUSTRIAL VISIT

TO

BOMBAY STOCK EXCHANGE

(BSE)

Shoaib Najeeb

International Business Masters

GRD SCIB - http://www.grdscib.in/

n February 12th 2009, our second day in the financial capital of India, we had two visits lined up for the day. First was to the World Trade Centre in the morning and then the BSE (Bombay Stock Exchange) in the noon. Everything went as planned

and there we were in front of the BSE after lunch and some loaded sessions at the World Trade Centre earlier during the day. Before I got out of the bus I remember having faced with a dilemma on whether to carry my digital camera with me or not as I was sure that they wouldn’t let me take it inside with me. But later on decided to carry it with me anyway as I didn’t fancy leaving it behind in the bus.

O

Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage, now spanning three centuries in its 133 years of existence. What is now popularly known as BSE was established as "The Native Share & Stock Brokers' Association" in 1875. BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE's pivotal and

pre-eminent role in the development of the Indian capital market is widely recognized. It migrated from the open outcry system to an online screen-based order driven trading system in 1995.

The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic stature, and is tracked worldwide. It is

an index of 30 stocks representing 12 major sectors. The SENSEX is constructed on a 'free-float' methodology, and is sensitive to market sentiments and market realities.

BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It has a nation-wide reach with a presence in more than 359 cities and towns of India. BSE has always been at par with the international standards. The systems and processes are designed to safeguard market integrity and enhance transparency in operations. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certifications.

Seeing the Bombay Stock Exchange for the first time, I thought to myself “it actually looks just like in the news, especially that large screen in front facing the road”. By now we had gotten out of the bus and were standing right across the street from BSE clueless about what to do next. Some have already taken out their cams and were leisurely clicking way. That is when I noticed that the main entrance gate to the BSE was actually closed and people were getting inside through another entrance on the side. Right next to the main entrance was parked a police van belonging to the ‘State Reserve Police’. The closed gate and seeing a police van parked near it resembled a scene from 26/11 attacks in Bombay.

The time was ‘2’pm when we finally started walking towards the side entrance after crossing the road and it was like a carnival there. Too many visitors trying to get into the building at the same time and there were men in uniform under sun umbrellas blocking the free movement of visitors at the entrance. From a distance where I stood, they seemed like street vendors to me. Only when I got closer to the entrance did I realise that they were actually security personnel and the sun umbrellas were frisking counters.

After the frisking episode and leaving behind our cameras at the counter, we were all lead to a spacious audio-visual room. There we were greeted by one of the BSE staff and later on we were introduced to one of trainers there at Bombay Stock Exchange who had a presentation ready for us. The presentation was very informative and was aimed at providing a very clear picture about the stock markets and how Bombay Stock Exchange functions.

Getting into details of the topics discussed in the presentation, firstly the talks mostly revolved around the economic recession which adversely affected the stock markets back in Feb 2009, the time of our visit. Then the talks shifted to stock market basics like

1. History of Bombay Stock Exchange.2. How sensex is prepared and its importance? 3. How are the companies listed on the BSE?4. Investing in stocks.

The presentation ended with the trainer introducing us to the variety of courses offered by Bombay Stock Exchange and luckily there was no love lost between the trainer and our class even after the lengthy presentation.

After the presentation got over, we were all taken to the cafeteria for tea. By now it was around ‘4’ in the evening and almost everyone appreciated the ‘hot’ tea that was served. More than the tea, it was the view from the cafeteria windows that caught my attention. We were in fact quite high up so as to get a spectacular view of the city through the windows. Cool breeze sweeping in through the open window and looking out at the vastness of the Mumbai city, taking occasional sips from the hot cup of tea in my hand was truely an amazing experience. After finishing tea, we all got together for a photo session with our guide for the day. CLICK!!! CLICK!!!

The photo session ended and soon we were escorted out of the building. At around half past four, we were again at the same place right across the street from BSE wondering where our bus had gone. While waiting for the bus to arrive we started doing what we were good at – clicking away like crazy using our cams.

Finally the bus arrived and boarding the bus I took one last look at the large bull statue in front of the BSE building.

-Shoaib najeeb-