Which of the following was Asia's first Stock Exchange?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Bombay Stock Exchange
Option (1) Bombay Stock Exchange — Correct. It was set up in 1875 as The Native Share and Stock Brokers Association in Bombay, and is known today as the BSE. It was the first stock exchange in India, and also the oldest in Asia.
Option (2) National Stock Exchange — Incorrect. The NSE was incorporated only in 1992 and recognised as a stock exchange in 1993. It is India’s most modern exchange, not its oldest.
Option (3) Karachi Stock Exchange — Incorrect. It was set up in 1947, more than seventy years after the BSE.
Option (4) Tokyo Stock Exchange — Incorrect. It was set up in 1878, three years after the BSE.
Note: Although the chapter ‘Financial Markets’ was dropped from the NCERT textbooks during rationalisation, it has stayed in the NTA syllabus every year since 2022, except for 2025, and it is part of the syllabus again from 2026. This question is therefore based on the pre-rationalised NCERT, an extract from which is given below. This chapter pulled a Goku: it left, trained somewhere, and came back stronger in 2026. Keep the pre-rationalised NCERT handy.
NCERT (Pre-rationalised Edition): “BSE (BOMBAY STOCK EXCHANGE LTD.) … BSE Ltd (formerly known as Bombay Stock Exchange Ltd) was established in 1875 and was Asia’s first Stock Exchange. It was granted permanent recognition under the Securities Contract (Regulation) Act, 1956. It has contributed to the growth of the corporate sector by providing a platform for raising capital. It is known as BSE Ltd but was established as the Native Share Stock Brokers Association in 1875. …” |