Brief history of Indian Stock Market.

Brief history of Indian Stock Market.

The history of Indian stock market is about 200 years

old. Prior to this the hundis and bills of exchange were in

use, specially in the medieval period, which can be considered

as a form of virtual stock trading but it was certainly

not an organized stock trading. The recorded stock trading

can be traced only after the arrival of East India Company.

The first organized stock market that was governed by the

rules and regulations came into the existence in the form of

The Native Share and Stock Brokers' Association in 1875.

After gone through numerous changes this association is today better as Bombay Stock Exchange, which remains the

premier stock exchange since its inception. During this

period several other exchanges were launched and some of

which were closed also. Presently, there are 19 recognized

stock exchanges out of which four are national level

exchanges and the remaining are regional exchanges.

National Stock Exchange, established in 1992, was the last

exchange.

Although the regional level exchanges are in existence

the volume of trading in these exchanges is negligible.

National Stock Exchange and Bombay Stock Exchange are

the leaders of Indian Securities Market in terms of listing,

trading and volumes.

The last 15 years of the Indian securities market can be

considered as the most important part of the history where

the market gone through the post liberalization era of

Indian economy and witnessed the formation of Securities

and Exchange Board of India (SEBI) which brought substantial

transparency in share market practices and thus

managed to bring in trust of not only domestic investors

but also the international ones.