140 Years of fascinating history of Indian Bourses

Last updated on January 12th, 2017

History of Indian Stock Markets

During the last Christmas holidays, We visited Mumbai along with our family and friends. The group included people from different age group and different background. Many of the must see tourist spots in the city found their names in our list by default. But we agreed to disagree on one thing. “A Baniyan Tree”.  

Yes, you heard it right, a Baniyan tree. A majestic tree in Mumbai has something to do with History of Indian Stock Markets. Most of the stock market freaks of our group wanted to visit the place and get a snap/Selfie. But forced to drop the idea as majority was in favor of visiting marine drive

This particular Baniyan tree witnessed the evaluation of stock market cult in India. Perhaps, under this tree, concept of share trading started evolving.

It all Started under a Baniyan Tree

Four Gujarati and a Parsi man used to meet under this Baniyan tree in front of Mumbai Town Hall during 1850’s. They used to informally trade in Cotton, but little they knew how their activities are going to transform lives of crores of people in future.  .

As their group grew because of the famous “share mania”, they formed the association called “The Native Share and Stock Broker’s Association”. thus formed the first official stock exchange which was renamed as Bombay Stock Exchange (BSE) in 1875. 

History-of-Stock-Markets-in-India

Many stock broking firms in Mumbai are still family run business. They are named after the heads of the family. For example, DS Prabhudas Broking company (Now after the joint venture with Merrill Lynch, it is well known as DSP-Merrill Lynch)

After changing the few building, a plot of land on which the current BSE building stands was acquired in 1928 and completely occupied in 1930. Indian Stock Markets have seen many turbulent and as well as golden times over the period of more than 150 years.

The First mass participation from the general public came when Mr.Dhirubhai Ambani came up with Reliance IPO in 1980. The Bombay Stock Exchange introduced the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. Today Sensex is synonymous with stock market in India.

*Read: Sensex meaning simplified – What is Sensex ?

In 1991, Dr. Manmohan Singh as Finance Minister announced series of reforms which led to next surge in the retail participation in the bourses only to be disillusioned by Harshad Mehta Scam.

*Also Read: How Harshad Mehta rigged the stock market.  

Evolution of SEBI and NSE

BSE was the numero uno among the stock exchanges of India until the Harshad Mehta Scam came out in public. In knee jerk reaction government set up the Security Exchange Board of India (SEBI) akin to of SEC of America.

It also showed keen interest in setting up electronic clearing system and thus the National Stock Exchange (NSE) was born. NSE brought exceptional transparency, efficiency and professionalism to the system. It introduced many path breaking instruments such as equity derivatives. Today NSE counts for major portion of the turnover of Indian stock exchanges.

The tree still stands at Horniman Circle Park near Flora Fountain. Hope we get chance to visit this “foundation” of Indian stock markets next time when we are in Mumbai.

Also Read: Ten Best and Popular Indian Brokerage Companies


~*Advertisement*~

~*End Of Advertisement*~


 

  Sharing is Definitely Caring!

Hope you liked this post about History of Indian Stock Market, you can find more such interesting and informative articles at our Archives page. You can also subscribe to our blog post below to receive the next post at your Inbox.

And oh yes!, please encourage by sharing this article through the social buttons on your left/below.

 

Filed Under : Stock Market

Liked the Article? Get the Next One Directly to Your Inbox

Get Interesting Posts, Updates about new Offers from Brokers and IPO alerts delivered to your Mailbox!

  

  
Copyright ©2017 theindianstockbrokers.com | All Rights Reserved | Best Share Brokers of India | Privacy Policy | Terms of Use | Sitemap | S Chand Allotment Status | HUDCO Review |

Disclaimer: theindianstockbrokers.com has taken due care and caution in compilation of data for its web site. Information has been obtained from different sources which it considers reliable. However, theindianstockbrokers.com does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. theindianstockbrokers.com especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. All Logos & Trademark belongs to their respective owners. The Information on Brokerage charges, trading platforms, background, and others have been acquired from customer support teams and/or from the respective company websites and brochures . If you are a brokerage firm and find any discrepancy, please Contact Us

Pay Maxumum Brokerage of Rs 20/Trade with Zerodha


Open your Demat Account Instantly with Aadhar Number