The Bombay Stock Exchange was the seed towards the growth of the Indian economy to what we are today. The first organized stock exchange was established in 1875 at Bombay and stated to be oldest in Asia. During the year of 1894 the Ahmedabad Stock Exchange was started to facilitate dealings in the shares of textiles companies. The Calcutta Stock Exchange was started in 1908 to facilitate dealings in the shares of jute mills and plantations.
The Indian Stock Market began its journey in the late 18th century when trading started to happen under the shade of a banyan tree opposite to the town hall of Mumbai. A few people would meet under the banyan tree and trade informally in cotton. It all started in Mumbai because of its geographical advantage, which attracted many traders, made Mumbai a busy trading port and essential commodities were often traded here. The company's act was introduced in 1850 following which investors started showing interest in corporate securities. Under this act, a provision was made for the registrar of companies, this provision allowed for the registration of joint stock companies in India.
By the year 1875 an organization known as “The Native Share and Stock Broker’s Association” came into existence, this was the predecessor of The Bombay Stock Exchange (BSE). In the year of 1920 the Madras Stock Exchange was introduced. In 1956 for the first time The BSE was recognized under the Securities Contract Regulation Act, 1956. The growth had been steady but slow until, 1986 when SENSEX was launched. SEBI was established in 1992, it regulates and monitors the Indian securities markets, and protecting the interests of the investors, formulating regulations and guidelines. The infamous Harshad Mehta scam was discovered in 1992, which is known to be the biggest scam ever committed in India, amounting to approximately Rs.50,000 crore, the scam was discovered in April 1992 and the markets collapsed, following which the NSE was incorporated in the year 1992 to bring about transparency in the Indian Equity Markets. Operations in the debt market and cash market started immediately in 1994 whereas the operations in derivatives market begun in the year 2000. In 1995 BSE also shifted to electronic system from the traditional trading floor.
Current state of the markets:
· BSE is known to be the biggest stock exchange in the world in terms of total companies listed. About 5500 companies are listed
· BSE is one of the oldest exchanges in Asia, established in 1875
· SEBI recognizes 8 registered stock exchanges in India
· The base of NIFTY50 on the date of inception was 1000, since inception it has given a 18x return to investors, touching 18000 on 11th October 2021.
· Reliance Industries Ltd. Is the most valued company in India, in terms of market capitalization, with a market cap. Of $215.33 Billion.
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