Friends, today we will talk about when and how INDIAN STOCK MARKET started, its development story, so that we can understand how INDIA STOCK MARKET has developed, we all know that India has two major stock exchanges.
First – BOMBAY STOCK EXCHANGE – BSE
Second – NATIONAL STOCK ESCHANGE- NSE
Story of the beginning and development of BSE –
The BSE ie Bombay Stock Exchange is the first stock exchange in Asia, which was established in 1875 and is the first stock exchange in the country after India became independent and was permanently recognized under the Contract Agreement 1956
Today, BSE is the fastest stock exchange in the world, with a capacity of 6 micro seconds, BSE is the first in the country and the second stock exchange in the world to receive ISO 9001 2000 certification.
In this way, BSE continued to move with the times and today BSE is the most tracked benchmark in India. Along with BSE Stock Exchange Service, its subsidiary CDSL i.e. Central Depository Services Limited. Further, the depository service provides, the shares purchased in CDSL are kept in dematerialized form.
Today, the BSE SENSEX is like a benchmark, reflecting the state of the Indian economy, if the BSE SENSEX is growing, it means that the Indian economy is also growing. For the last 142 years since 1875, BSE has made a commendable contribution for the Indian corporate sector in meeting the capital needs.
Establishment of Dalal Street and BSE –
The BSE was established in 1875 under the name of “THE NATIVE STOCK BROKER ASSOCIATION”, later renamed as Bombay Stock Exchange.
BSE was born in 1850 in Mumbai under a banyan tree, where today is Hornman Circle Garden, near the same town hall, under a banyan tree, some people used to gather and bargain for SHARES.
As the number of people doing the deal increased, these people started gathering under the banyan tree at the junction of Dalal’s Rose Street and Mahatma Gandhi Road, and then as people started growing, they started looking for a new place Granted. I found a permanent place in 1874, which later became known as Dalal Street.
Today on the Dalal Street itself is the BSE TOWERS, the BSE TOWERS 129-storey building, measuring 118 meters in height, was built by the L&T company and its architect was Chandrakant Patel, which started in 1970.
It was completed in 1980 and when this building was built, it was the largest building in India at that time.
BSE Overview
| Year | Overview |
| 9 Jul 1875 | The Native Stock Brokers Association” was established. |
| 31 Aug 1957 | BSE was recognized as the first stock exchange in the country under SECURITIES contract agreement |
| 02 Jan 1986 | country’s first stock EXCHANGE INDEX established |
| 25 Jul 1990 | BSE SENSEX reaches above 1000 |
| 15 May 1992 | Establishment of SEBI for STOCK EXCHANGE development and control |
| 14 Mar 1995 | BSE Online Business (BOLT) launched |
| 22 Mar 1999 | CDSL was established |
| 11 Oct 1999 | BSE above 5000 for the first time |
| 09 Jul 2000 | Options and Future Trading trades |
| 01 Apr 2003 | T + 2 SETTLEMENT |
| 19 May 2005 | Sensex reaches 10,000 for the first time |
| 03 Feb 2017 | BSE becomes India’s first listed stock exchange |
History of Indian stock market – NSE–
NSE i.e. NATIONAL STOCK EXCHANGE was established in 1994, before the establishment of NSE, India’s SECURITIES AND CAPITAL MARKET was lagging behind other countries of the world, along with Harshad Mehta SCAM.
In such a situation, such a stock exchange was required transparent trading system and new technology to provide better facilities than other countries.To meet this requirement, NSE was established, and today NSE is consistently meeting expectations for its services, for which it was established.
According to WORD FEDERATION OF EXCHANGE (WFE) the NSE is the largest stock exchange in India and the fourth largest stock exchange in the world in terms of EQUTIY VOLUME TRADING in 2015.
As per SEBI report, NSE became India’s largest stock exchange within the next 1 year of its founding year 1994 as per TRADING AVERAGE VOLUME.
NSE started screen-based training from 1994 and became the first stock exchange to offer such a trading platform in India with the launch of Index Future in 2000, which was unique.
Development of NSE – at a glance
Ø Establishment of 1993 NSE
Ø Started 2nd 1994 SCREENBASED business
Ø 1996 CNX NIFTY 50 INDEX debut
Ø 1996 Demat account business started
Ø Index Futuring Trading Bags ABOVE 2000 Nifty 50
Ø 2001 Future and options begin in single stock
Ø 2001 Nifty 50 Pay based index option trading started
Ø stars 2010 course business
Ø 2015 CNX Nifty renamed to NIFTY 50
NSE and BSE indicators of country’s economic capital market.Today, in our country, both the stock exchanges BSE and NSE operate in almost the same way, although there is a difference between the two INDEX VALUE,
Because the INDEX of both starts from a different year, and there is also a difference in the number of companies included in their INDEX, where BSE INDEX is 30 company, the same NIFTY-50 has 50 company.
Both stock exchanges today remade the Indian economy through their INDEX, BSE SENSEX and NIFTY to 50 capital growth of the Indian economy.