What is the history of Indian share trading market?

Answer 1

Indian Share Market started functioning from 1875. The name of the first share trading association in India was Native Share and Stock Broker's Association which later came to be known as Bombay Stock Exchange (BSE). This association began with 318 members. Indian Share Market mainly consists of two main stock exchanges :- Bombay Stock Exchange (BSE) National Stock Exchange (NSE) Bombay Stock Exchange (BSE) Bombay Stock Exchange is the oldest stock exchange not only in India but in entire Asia. Its history is synonymous with that of the Indian Share Market history. BSE started functioning with the name, The Native Share and Stock Broker's Association in 1875. It got Government of India's recognition as a stock exchange in 1956 under Securities Contracts (Regulation) Act, 1956. At the time of its origin it was an Association of Persons but now it has been transformed to a corporate and de-mutualised entity. The total number of companies listed in BSE is around 3500. Bombay Stock In BSE, the trades that takes place are :- * Equity or Shares * Derivatives (Futures and Options) * Debt Instruments The main index of BSE is called BSE SENSEX or simply SENSEX. It is composed of 30 financially sound company stocks which are liable to be reviewed and modified from time-to-time. The index calculation is done on the methodology of "Free-float Market Capitalization" method. This method is also followed by the leading exchanges like Dow-Jones. During early 1990s it was at 1000 mark, 5000 in 1999, and 8000 in September 2000.

It reached a high of 21000 during Jan 2008 and subsequently fell to less than 10000 after the economic crisis.

Currently it is hovering around the 15000 mark.

National Stock Exchange (NSE) National Stock Exchange (NSE) is the leading stock exchange in India in terms of total volume traded. It is based in Mumbai but has its presence in over 1500 towns and cities. In terms of market capitalization, NSE is the second largest bourse in Asia. National Stock Exchange got its recognition as a stock exchange in July 1993 under Securities Contracts (Regulation) Act, 1956. The products that can be traded in NSE are :- * Equity or Share * Futures (both index and stock) * Options (Call and Put) * Wholesale Debt Market * Retail Debt Market NSE's leading index is Nifty 50 or popularly Nifty and is composed of 50 diversified benchmark Indian company stocks. Nifty is constructed on the basis of weighted average market capitalization method.