Working of Stock Exchanges in India

Indian stock exchanges are working before independence of Indian after revaluation of industry in west, English investors started to deal in shares in Indian stock exchanges since 1875. They started to deal first in India’s economic and business center Bombay.

 

For this they had established Bombay stock exchange in India in 1875 with the name of “The native share and stock brokers association ”. There were just 318 persons who became members of this association.

Slowly the no. of members and trading in this stock market was increasing and in 1956, BSE became reputed market after providing powers of capital market by passing securities contract(Regulation) act 1956 and  No. of stock exchanges were increases and national stock exchange was also established in Mumbai in 1993.

From 1875 to 1995 working of stock exchanges in India was fully dependent on paper shares, debentures and bond. It means for completing dealing physical delivery of shares was necessary.
But from 1995, online dealing in shares, created online stock markets in India. One side, we are seeing the developments and progress in stock exchanges in India.

but other side after PM Scam 1992  because Harshad Mehta told in public media he gave donation Rs. 1 Crore, 

We watched downfall in the progress of stock exchanges in India because corruption from PM to down govt. employee. 

As per Harshad Mehta Family official website, Harshad Mehta did not do any fraud with  the nation. It gives the proof ACC which came from Rs. 200 to Rs. 10,000 was logical because if anybody buy ACC 1 share at Rs. 10000, today its value is Rs. 80,000.

Even public at that time told, Harshad Mehta did not cheat anyone. He was read Stock market big bull. He was genius and his calculations were true on the basis of company's actual worth. 

So, who was the responsible Share market big crash 1992

1. Media , media had increased the fear in the public small investors

2. Foreign banks and Indian banks who was involved in the fraud. 

Due to this 200 million shares of 90 companies and millions of Dollars loss was suffered by small and middle investors when scam was publicly opened and sensex dropped 570 points.

SEBI made rules in which all transactions will be settled on daily basis .

Now stock exchange changes fully in India. For dealing in stock exchange, any person needs Demat account .

Main benefit of e-stock exchanges that now NRI can sell and purchase without physical transferring of shares , all dealing are taken place online and sale and purchase price of shares are transferred by cheque or by e-banking facility .


This new form of stock exchanges in India opens new business in each and every home which is connected with Internet.


Indian stock exchange trends are showing upward sensex from last 2008 when USA market fell due to financial crisis but India saved easily from this crisis and a very small effect was on Indian stock market

Update 31-1-2025 .