The iconic neon sign outside the grand building, flashing numbers which millions around the country rely on; Image Source: Bloomberg 

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During the 1850s, trading was not that much of a big deal as it is, today. Some five or twenty brokers would meet at their designated spot under a banyan tree in front of Mumbai Town Hall and discuss stocks while trading in them, just within themselves. As the size of this group of stockbrokers grew, the location was shifted.

Yet another Banyan Tree was chosen but this time it was under the Banyan trees at Meadows Street. Perhaps, it was the holy Banyan Trees under which these stockbrokers toiled away that led to further growth, until finally in 1874, a permanent location (at least that’s what they thought) was selected.

> So, on July 9th, 1875, the Bombay Stock Exchange was finally established as an official organization with the name The Native Share & Stock Brokers Association.

The brokers continued to operate from here until 1930. This is when they acquired a site on Dalal Street (which translates to Broker’s Street), a place they could call their own. They were soon signed in under the Indian Government’s Act of ‘Securities Contracts Regulation Act’ and became the first stock exchange to be recognized by the Indian Government. 

However, the need for a permanent building was still very much felt. So, the construction of the present building began only towards the end of the 1970s and was occupied by the Bombay Stock Exchange in 1980. 

> Phiroze Jeejeebhoy Towers, as it is famously known today, was initially named BSE towers but following the death of BSE’s chairman Sir Phiroze Jamshedji Jeejeebhoy, it was named after him, and thus, this name stuck.

The brokers began working tirelessly, but they needed the means to measure the overall performance of their exchange. So, the famous SENSEX index was established in 1986, an index that stands out on most financial headlines today. Towards the 2000s, a period which was characterised by economic growth, there was massive growth and evolution in the Bombay Stock Exchange.

What was historically an open outcry floor trading exchange evolved into an electronic trading system in the year 1995. The BSE boasts of having made this transition in just 50 days. Soon, commodity derivatives like gold and silver also began to be traded, operations were not just limited to stocks.

The BSE became highly recognised at such a level that Dalal Street became synonymous with its name. Today, the market cap of the Bombay stock exchange is ₹2,18,730 billion (as of May 2021). This speaks volumes of how India has evolved in the finance sector, as it continues to evolve further.

The Bombay Stock Exchange or the BSE, Asia’s oldest and the world's 9th largest stock exchange was once upon a time just a bunch of stockbrokers who traded under the shade of a banyan tree. Here’s something about how it gained the prominence it has today.

Trading under the Banyan Tree

Modern

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