Indian Capital (Group 10) ANOOP

8/9/2019 Indian Capital (Group 10) ANOOP

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( AN OVERVIEW )


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Indian Stock Markets are one of the oldest in Asia (Since 200 years ago).By 1830's business on corporate stocks and shares in Bank and Cottonpresses took place in Bombay. Though the trading list was broader in 1839,there were only half a dozen brokers recognized by banks and merchants

during 1840 and 1850.

At the end of the American Civil War in 1874, Brokers found a place ina street (Now called as Dalal Street) where they would convenientlyassemble and transact business.

In 1887,they formally established in Bombay,the "Native Share and StockBrokers Association" (which is alternatively known as "The Stock Exchange").

In 1895, the Stock Exchange acquired a premise in the same street and it wasinaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

The 1850's witnessed a rapid development of commercial enterprise andbrokerage business attracted many men into the field and by 1860 thenumber of brokers increased into 60.


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(Introducing Limited liability joint stockcompanies)

Withthepassingofthe Companies Act


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Ahmedabad gained importance next to Bombay in 1894

On June 1908, "The Calcutta Stock Exchange Association".

In 1937 Madras Stock Exchange Association (Pvt) Limited.(In 1957 the name was changed to Madras Stock Exchange Limited).

Lahore Stock Exchange in 1934 and it had a brief life.(It was merged with the Punjab Stock Exchange Limited, which wasincorporated in 1936.)

The Uttar Pradesh Stock Exchange Limited (1940)

Nagpur StockExchange Limited (1940)

Hyderabad Stock Exchange Limited (1944)

In June 1947, Delhi got two stock exchanges1st Delhi Stock and Share Brokers Association Limited

2nd Delhi Stocks and Shares Exchange Limited

Bangalore Stock Exchange Limited was registered in 1957 and

recognized in 1963.


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OTCEI - was created in 1992 by country's premierfinancial institutions- Unit Trust of India,

Industrial Credit and Investment Corporation of India,

Industrial Development Bank of India,SBI Capital Markets, Industrial Finance Corporation of India,

General Insurance Corporation and itssubsidiaries and CanBank Financial Services.

The traditional trading mechanism prevailed in the Indian stockmarkets gave way to many functional inefficiencies, such as,absence of liquidity, lack of transparency, unduly long settlemenperiods and benami transactions, which affected the smallinvestors to a great extent.


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The National Stock Exchange was incorporated in 1992 byIndustrial Development Bank of India, Industrial Credit andInvestment Corporation of India, Industrial Finance Corporationof India, all Insurance Corporations, selected commercial banks

and others.

(a) Wholesale debt market

(b) Capital market

[ Wholesale debt market operations are similar to money market operations ]


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(a) Trading members

(Recognized members of NSE are called trading members)

(b) participants

(Participants include trading members and large players like

Banks who take direct settlement responsibility.)


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[ Their capacity to save is extremely low due to low levels of income and highpropensity to consume. There for, the rate of investment is low which leadsto capital deficiency and low productivity. Low productivity means low

income and the vicious circle continues. ]


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Thank You

BY- Anoop Kumar Verma, Pratibha Ray,

Rajneesh, Shayad Sqlain Haidar


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Documents

Indian Capital (Group 10) ANOOP