History of Indian Stock Exchange
History of the Indian Stock Market – The Origin
One of the oldest stock markets in Asia, the Indian Stock Markets have a 200 years old history.
| 18th Century | East India Company was the dominant institution and by end of the century, busuness in its loan securities gained full momentum |
| 1830’s | Business on corporate stocks and shares in Bank and Cotton presses started in Bombay. Trading list by the end of 1839 got broader |
| 1840’s | Recognition from banks and merchants to about half a dozen brokers |
| 1850’s | Rapid development of commercial enterprise saw brokerage business attracting more people into the business |
| 1860’s | The number of brokers increased to 60 |
| 1860-61 | The American Civil War broke out which caused a stoppage of cotton supply from United States of America; marking the beginning of the “Share Mania” in India |
| 1862-63 | The number of brokers increased to about 200 to 250 |
| 1865 | A disastrous slump began at the end of the American Civil War (as an example, Bank of Bombay Share which had touched Rs. 2850 could only be sold at Rs. 87) |
Pre-Independance Scenario – Establishment of Different Stock Exchanges
| 1874 | With the rapidly developing share trading business, brokers used to gather at a street (now well known as “Dalal Street”) for the purpose of transacting business. |
| 1875 | “The Native Share and Stock Brokers’ Association” (also known as “The Bombay Stock Exchange”) was established in Bombay |
| 1880’s | Development of cotton mills industry and set up of many others |
| 1894 | Establishment of “The Ahmedabad Share and Stock Brokers’ Association” |
| 1880 – 90’s | Sharp increase in share prices of jute industries in 1870’s was followed by a boom in tea stocks and coal |
| 1908 | “The Calcutta Stock Exchange Association” was formed |
| 1920 | Madras witnessed boom and business at “The Madras Stock Exchange” was transacted with 100 brokers. |
| 1923 | When recession followed, number of brokers came down to 3 and the Exchange was closed down |
| 1934 | Establishment of the Lahore Stock Exchange |
| 1936 | Merger of the Lahoe Stock Exchange with the Punjab Stock Exchange |
| 1937 | Re-organisation and set up of the Madras Stock Exchange Limited (Pvt.) Limited led by improvement in stock market activities in South India with establishment of new textile mills and plantation companies |
| 1940 | Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange Limited was established |
| 1944 | Establishment of “The Hyderabad Stock Exchange Limited” |
| 1947 | “Delhi Stock and Share Brokers’ Association Limited” and “The Delhi Stocks and Shares Exchange Limited” were established and later on merged into “The Delhi Stock Exchange Association Limited” |
Post Independance Scenario
The depression witnessed after the Independance led to closure of a lot of exchanges in the country. Lahore Estock Exchange was closed down after the partition of India, and later on merged with the Delhi Stock Exchange. Bnagalore Stock Exchange Limited was registered in 1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956. The Exchanges that were recognized under the Act were:
Many more stock exchanges were established during 1980’s, namely:
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At present, there are twenty one recognized stock exchanges in India which does not include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).
Related posts:
- History of Stock exchanges
- What are stock exchanges all about ?
- Difference between NSE and BSE
- Major Stock Exchanges in world
- Trading in BSE/NSE starts at 9 AM from 4th January
Filed Under: Informative
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