The functioning of stock broking in India was started in 1875. The BSE is oldest stock
broking of India. History of Indian stocks trading starts with the 318 person taking
membership in Stock Brokers Association and Native Share, which is known by name
as Bombay Stock Exchange (BSE). In the year 1965, BSE got a permanent
acknowledgment from Government of India which was most required. The National
Stock Exchange arrives 2nd to the BSE in the terms of status. NSE and BSE represent
themselves as the synonyms of the Indian stock market. History of stock market in
India is almost same as history of BSE. An up-beat mood of marketplace was lost
abruptly with the Harshad Mehta scam. This came to the public knowledge that
Harshad Mehta, who is also called as big-bull and giant of Indian stock market which
diverted huge fund from banks by fraudulent means. He also played with millions of
shares of many companies. For preventing such frauds, Government formed SEBI,
through Act in 1992. The SEBI is statutory body which regulates and controls
functioning of brokers, stock exchanges, portfolio manager investment advisors,
sub-brokers, etc. SEBI obliged several tough measures to protect interest of investor.
Now with inception of the online trade and every day settlements chances for fraud
are nil, top official of SEBI says.
  Sensex crossed 5000 mark in year 1999 and 6000 mark in year 2000. Foreign
institutional investor (FII) is investing in stock markets in India on very large scale.
Liberal economic policies pursue by successive Government attracted many foreign
institutional investors towards large scale. The impulsive behavior and action of
market dedicated it tag - 'volatile market.' The factors which affected market in past
were the good monsoon, rise to power of Bharatiya Janatha Party's etc. The result of
cricket matches between Pakistan and India also affected movements of stock broking
in India. National Democratic Alliance which was led by BJP, in 2004 the public
election unsuccessfully tried for riding on market sentiment to power. NDA is voted
out of the power and sensex recorded biggest fall in day amidst fears which
Congress-Communist coalitions would have stall economic reform.
  India, after US hosts the large number of the listed companies. The Global investors
now seek India as preferred location for the investment. Stock market now also
appeals to the middle class Indians. Most of the Indian working in foreign country
now diverts their savings to the stocks. This new phenomenon is result of diminished
interest rate from banks and opening of the online trading. Stock brokers based in the
India are opening office in different country mainly to cater needs of the Non
Resident Indians. They can sell or buy stocks online while returning from work places.
The recent incidents which led to the growing interests among all Indian middle class
is initial public offer announced by ONGC, Maruti Udyog Limited, Tata Consultancy
Services and many big names like such. A bullish run of stock market can associated
with steady growth of 6% in GDP, growth of Indian company to MNCs, the large
potential of the growth in fields of mass media, telecommunication, education, IT
sectors and tourism backed by the economic reforms ensures that the Indian stock
market continue its bull run.
  stock broking in India

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