Indian Stock Market

1. Early Beginnings (1830–1875)
• 1830s: Trading in shares of banks and cotton mills began informally in Bombay (now Mumbai).
• 1850s–1860s: Trading activity increased during the American Civil War due to the cotton boom.
• 1875: Bombay Stock Exchange (BSE) was established as The Native Share & Stock Brokers’ Association, making it Asia’s oldest stock exchange.

2. Pre-Independence Growth (1875–1947)

• Stock trading expanded gradually across India.
• Regional stock exchanges were established in Ahmedabad, Calcutta, Madras and Delhi.
• Trading remained largely unregulated.

3. Post-Independence Era (1947–1991)

• 1956: Securities Contracts (Regulation) Act came into force.
• 1957: BSE became the first recognized stock exchange under the Act.
• Public and private companies increasingly raised capital through stock markets.
• Trading continued using the open outcry system.

4. Liberalization and Modernization (1991–2000)

• 1991: Economic liberalization opened India to private and foreign investment.
• 1992: SEBI became the statutory regulator.
• 1992: Harshad Mehta scam led to major reforms.
• 1992: NSE was incorporated.
• 1994: NSE introduced electronic screen-based trading.
• 1995: NIFTY 50 was launched.

5. Technology and Market Expansion (2000–2010)

• Online trading platforms became popular.
• 2000: Index derivatives introduced.
• 2001: Stock futures and options launched.
• NSDL and CDSL enabled dematerialization.
• 2008: Global Financial Crisis impacted Indian markets.

6. Modern Era (2010–Present)

• Retail participation increased through mobile trading apps.
• Growth of SIP investments in mutual funds.
• 2016: Insolvency and Bankruptcy Code (IBC) implemented.
• 2020: COVID-19 market crash followed by strong recovery.
• 2021–2024: Sensex and Nifty reached record highs.

Major Milestones

• 1875 – BSE established
• 1956 – Securities Contracts (Regulation) Act
• 1992 – SEBI became statutory regulator
• 1992 – NSE incorporated
• 1994 – Electronic trading
• 1995 – NIFTY 50 launched
• 1996 – Demat system introduced
• 2000 – Derivatives trading
• 2008 – Global Financial Crisis
• 2020 – COVID-19 crash & recovery
• 2024 – Sensex crossed 75,000

Important Reforms

• Establishment of SEBI
• Electronic trading system
• Dematerialization (Demat)
• T+1 settlement
• Algorithmic trading
• FII/FPI participation
• REITs & InvITs
• Insolvency and Bankruptcy Code (IBC)

Evolution of the Indian Stock Market

• Manual Trading → Electronic Trading → Demat Shares → Online Trading → Mobile Trading → AI & Algorithmic Trading.