history of indian stock

8/2/2019 History of Indian Stock

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The Bombay Stock Exchange (BSE) is known asthe oldest exchange in Asia. It traces its historyto the 1850s, when stockbrokers would gather

under banyan trees in front of Mumbais TownHall. The location of these meetings changedmany times, as the number of brokers constantlyincreased. The group eventually moved to DalalStreet in 1874 and in 1875 became an official

organization known as The Native Share & StockBrokers Association. In 1956, the BSE becamethe first stock exchange to be recognized by theIndian Government under the SecuritiesContracts Regulation Act.


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The Bombay Stock Exchange developed theBSE Sens*x in 1986, giving the BSE a means

to measure overall performance of theexchange. In 2000 the BSE used this index toopen its derivatives market, trading Sens*xfutures contracts. The development of Sens*x

options along with equity derivatives followedin 2001 and 2002, expanding the BSEstrading platform.


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Historically an open-cry floor tradingexchange, the Bombay Stock Exchangeswitched to an electronic trading system in1995. It took the exchange only fifty days to

make this transition.


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Capital market reforms in India and thelaunch of the Securities and Exchange Boardof India (SEBI) accelerated the integration ofthe second Indian stock exchange called the

National Stock Exchange (NSE) in 1992. Aftera few years of operations, the NSE hasbecome the largest stock exchange in India


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In 1996, the National Stock Exchange of Indialaunched S&P CNX Nifty and CNX Junior Indicesthat make up 100 most liquid stocks in India.CNX Nifty is a diversified index of 50 stocks from

25 different economy sectors. The Indices areowned and managed by India Index Services andProducts Ltd (IISL) that has a consulting andlicensing agreement with Standard & Poors.

In 1998, the National Stock Exchange of Indialaunched its web-site and was the first exchangein India that started trading stock on the Internetin 2000. The NSE has also proved its leadershipin the Indian financial market by gaining many

awards such as Best IT Usage Award byComputer Society in India (in 1996 and 1997)and CHIP Web Award by CHIP magazine (1999).


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For getting membership in stock exchange, atfirst we have to have a PANCARD {permanentaccount number}.It should be provided by thestock market agencies. Stock market agenciesare Geojith,JRG,Motilal, UTI etc..Then weneeded a prominent nationalized bank

account. And the bank should provide chequebook for the stock market transaction.

history of indian stock

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