The Stock Exchange at Bombay was established in 1875 as "The Native Share and Stockbrokers Association" which has evolved over the decades in to its present status as the premier Stock Exchange in India. It is one of the oldest in Asia having preceded even the Tokyo Stock Exchange which was founded in 1878.

In the early days the business was conducted under the shade of a banyan tree in front of the town hall. The tree can still be seen in the Horniman Circle Park. In 1850 the Companies Act was passed and that heralded the commencement of the joint stock companies in India. The American Civil War of 1860 helped Indians to establish brokerage houses in Bombay.

The exchange was established with 318 members with a fee of Re. 1/-. This fee has gradually increased over the years and today it is a over a crore.

In January 1899, the Brokers' Hall was inaugurated by James M. MaClean, M.P. After the First World War the Bombay Stock Exchange (BSE) was housed in an old building near the Town Hall. In 1928, the present plot of land was acquired surrounded by Dalal Street, Bombay Samachar Marg, and Hammam Street. A building was constructed in 1930 and occupied in December of that year.

In 1995 the operations and dealings of the BSE were fully computerized and thus the famous out-cry system of share trading was replaced by screen based trading as in other modern stock exchanges around the world. Today Bombay is the financial and business capital of India. The BSE is housed in the 28-storied Phiroze Jeejeebhoy Towers in the same place where the old building once stood. Sir Phiroze Jamshedji Jeejeebhoy was the Chairman of the Exchange from 1966 till his death in 1980. The building has been named after him since its construction commenced during his Chairmanship and was completed just as he passed away.