The Indian Securities market has become one of the most dynamic and efficient securities market in Asia today.
During the latter half of the 19th century shares of companies used to be traded in India occasionally.
A small group of stock brokers in Bombay joined together in 1875 to form an association called Native Share and Stockbrokers Association. The association drew up codes of conduct for brokerage business and mobilised private funds for investment in the corporate sector. It was with this association which later become the Bombay Stock Exchange Which is oldest stock exchange in Asia. this exchange is now known as the stock Exchange , Mumbai or BSE.
In 1894 the brokers of Ahmadabad formed Ahmadabad Share and stock brokers Association which later become Ahmadabad Stock exchange. the Second stock Exchange of country.
During the 1900s kolkata become another major center of share trading on account of the starting of several indigenous industrial enterprises. A result the third stock exchange of the country was started by kolkata stock brokers at 1908.
Yet Another Stock Exchange was started in 1920 at Chennai. How ever , by 1923, it ceased to exist . Later , in 1937 the Madras stock exchange was revived as many new cotton textile mills and plantation companies were floated in South India.
Three more stock Exchange were established before independence At Indore in Madhya Pradesh in 1930, at Hyderabad in 1943 and at Delhi in 1947 thus at the time of independence Seven stock exchanges were functioning in the major cities of the country.
The number of stock exchange virtually remained unchanged for nearly three decades from 1947 to 1977, except for the establishment of the Bangalore Stock Exchange in 1957.
During the 1980s however many stock exchange were established. Some of them were:
- Cochin Stock Exchange (1978)
- Uttar Pradesh Stock Exchange (at Kanpur 1982)
- Pune Stock Exchange (1982 )
- Ludhiana Stock Exchange (1983)
- Gauhati Stock Exchange (1984)
- Kanara Stock Exchange (At Mangalore 1985)
- Magadh Stock Exchange (At Patna 1986 )
- Jaipur Stock Exchange ( 1989)
- Bhubaneswar Stock Exchange (1989 )
- Saurashtra Kutch Stock Exchange ( at Rajkot 1989 )
- Vadodara Stock Exchange (at Baroda1990 )