In which year was the Bombay Stock Exchange (BSE), Asia's oldest stock exchange, formally established in Mumbai?

Introduction / Context:
The Bombay Stock Exchange, now commonly called BSE Limited, is a central institution in India's financial system and is recognised as the oldest stock exchange in Asia. Its origin is frequently discussed in questions on Indian economy, financial markets and business history. Knowing the year in which BSE was formally established is a standard fact for general knowledge and banking exams.

Given Data / Assumptions:
- The question asks for the year when the Bombay Stock Exchange was formally established.
- Options are 1947, 1875, 1920 and 1960.
- BSE is based in Mumbai and has a long history that predates India's independence.
- Standard finance and economic history references are assumed.

Concept / Approach:
The origins of BSE go back to informal trading among brokers under a banyan tree in Bombay in the mid nineteenth century. Over time, this group of brokers evolved into an organised association. The institution was formally established as The Native Share and Stock Brokers' Association in the year 1875. This body later became what we know today as the Bombay Stock Exchange or BSE. Because 1875 marks the formal establishment of the exchange, this year is the one that is used in official descriptions and exam syllabi.

Step-by-Step Solution:
Step 1: Recall that BSE is older than independent India and that it existed in the late nineteenth century.
Step 2: Remember that the year 1875 is repeatedly cited as the formal establishment year of the exchange.
Step 3: Compare the options and immediately reject 1947 and 1960, which are well after the founding period.
Step 4: Consider 1920, which is closer but still not the correct founding year.
Step 5: Select “1875” as the correct answer.

Verification / Alternative check:
Official profiles of BSE, as well as finance textbooks and exam guides, describe it as being established in 1875 and emphasise that it is the oldest stock exchange in Asia. The frequently repeated line is that it began as The Native Share and Stock Brokers' Association in 1875. Students who have read any history of Indian capital markets will have seen this date many times, making it straightforward to verify that 1875 is the correct founding year.

Why Other Options Are Wrong:
- 1947: This is the year of India's independence, not the year when BSE was founded. BSE already existed long before 1947.
- 1920: There were developments in BSE's infrastructure around that time, but the formal establishment year is earlier, in 1875.
- 1960: This is far too late and corresponds more to the period of post independence economic development than to the origin of the stock exchange.

Common Pitfalls:
Some candidates may mistakenly link the start of modern financial institutions with India's independence and choose dates like 1947 or 1960, especially if they have not studied economic history in detail. Others may simply guess a twentieth century date because it feels more modern. To avoid these errors, learners should remember that BSE has a very long history that began in colonial times. Associating the phrase “BSE – founded as Native Share and Stock Brokers' Association in 1875” is a simple way to lock in the correct year.

Final Answer:
The Bombay Stock Exchange was formally established in 1875.