The Basics of How Indian Stock Exchange Works

More than 140 years ago somewhere someone started India’s and Asia’s first stock exchange market. This stock market came to be known as BSE India. It was the only exchange market of the India until NSE came into being. That is a different thing we are discussing BSE today. Its index is one of the most tracked markets. It is known as BSE Sensex. Today, it has progressed towards the electronic mode of operations, pulling the transitions from an offline mode of operation to digital in record time of fifty days. It has been the torch bearer for Indian Exchange in terms of mobile trading.

How does it operate?
Bombay Sensex is one of the fastest exchanges in the world recording the time at six microseconds. If you are planning on trading on it, you would need to get in touch with a brokerage firm. It is not possible to trade without a membership license on it. Since it is a place where all the buying and selling of the shares take place, it needs to be governed by somebody. It is done in order to protect the buyer. Anything which cannot be controlled will behave like a bull and no want that to happen. Hence the regulatory body of India is SEBI, the Securities and Exchange Board of India gives out the guidelines which are mandatory to be followed by every exchange.
What happens on the exchange?
Once the company decides to list their Initial Public Offering needs to get them verified with SEBI. If they get a go ahead from SEBI then they have to list themselves on the market. But they don’t do it themselves; they will first find bankers who help companies go public. The idea is to not needing to have face to face indulgences with the investors and the public. So, the company gives them the estimation of the price they are looking at for the cost of going public. BSE is one of the exchanges where companies get listed. Upon successful listing of the company, the shares go live and people start purchasing the shares of the company. All of this is facilitated by brokerage firms or individual firms. They get their income by charging a fixed every transaction they perform for their clients. This is how the exchange work in crux.