Question

History of Stock Exchange in India

Answer 1

The stock exchange in India has a rich history dating back to the 18th century when the East India Company and Dutch VOC were prominent players. The establishment of the Amsterdam Stock Exchange marked a significant milestone. Today, the Bombay Stock Exchange and National Stock Exchange play a vital role in India's financial sector.

Step-by-step explanation:

The history of the stock exchange in India dates back to the 18th century when the East India Company established trading posts and monopolies in different parts of the world, including India. The Dutch Vereenigde Oostindische Compagnie (VOC) and the English East India Company were prominent players in this trade. The VOC, in particular, played a significant role in buying tea and porcelain in China, establishing trading posts in Asia, and founding a colony in Indonesia. These ventures led to the establishment of the Amsterdam Stock Exchange, which served as a one-stop-shop for financial services.

Fast forward to the present day, the stock exchange scene in India has evolved. The Bombay Stock Exchange (BSE) was established in 1875 and is now the oldest stock exchange in Asia. The National Stock Exchange (NSE), established in 1992, is another major stock exchange in India. These exchanges facilitate the trading of stocks for thousands of companies, contributing to the growth of India's financial sector.

Answer 2

The first organised stock exchange in India was started in 1875 at Bombay and it is stated to be the oldest in Asia. In 1894 the Ahmedabad Stock Exchange was started to facilitate dealings in the shares of textile mills there. The Calcutta stock exchange was started in 1908 to provide a market for shares of plantations and jute mills.

Then the madras stock exchange was started in 1920. At present there are 24 stock exchanges in the country, 21 of them being regional ones with allotted areas. Two others set up in the reform era, viz., the National Stock Exchange (NSE) and Over the Counter Exchange of India (OICEI), have mandate to have nation-wise trading.

They are located at Ahmedabad, Vadodara, Bangalore, Bhubaneswar, Mumbai, Kolkata, Kochi, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur’ Kanpur, Ludhiana, Chennai Mangalore, Meerut, Patna, Pune, Rajkot.

The Stock Exchanges are being administered by their governing boards and executive chiefs. Policies relating to their regulation and control are laid down by the Ministry of Finance. Government also Constituted Securities and Exchange Board of India (SEBI) in April 1988 for orderly development and regulation of securities industry and stock exchanges.