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
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.