A brief description on how the stock market grew in India. Refering to post independence period and the features of stock market. A brief discussion on NSE and BSE is also provided.

1. PRESENTED BY:-
 Mudit Porwal
 Nigvedita Sarvaiya
 Neetu Udasi
 Mridul Gupta
 Monica Khemka
 Nidhi Bucha
 Neha Shukla
 Nikhil Singh
Development of Stock Market in India

2. Stock & Stock Exchange

3. Intoduction
Definition:
 The stock market refers to the collection of markets and exchanges where the
issuing and trading of equities or stocks of publicly held companies, bonds, and
other classes of securities take place.
Function & Purpose:
 The stock market is one of the most important sources for company to raise
money. This allows businesses to be publicly traded, or raise additional capital for
expansion by selling shares of ownership of the company in a public market.

4. REFORMS IN THE INDIAN STOCK
MARKET
1. Liberalisation in 1990s:
 The process has to be deepened to bring:
 Speeder conclusion of transaction
 Greater transparency in operations
 Improved services to investors
 Greater investor’s protection.
2. Scrapping controller of capital issues (CCI):
 Government of India repealed capital issues (Control) Act of 1947 and abolished CCI
in March 1992 and this statutory power was conferred to SEBI.

5. 3. Establishment of Securities and Exchange Board of India (SEBI) in 1992:
a.) Protection of the interest of investors and securities
b.) Development of the securities market
c.) Regulations of the securities market
d.) Reviewing and reappraising its policies and programmes.
4. Introduction of Dematerialisation:
 Establishment of National Securities Depositories Ltd.(NSDL) in October,1996
 Establishment of Central Depositories Services Ltd.(CDSL) in February,1999
 They helped to eliminate the problems associated with paper-based securities
systems.
 For e.g- Delay money transfer, bad delivery and theft, etc.

6. 5. Introduction of derivatives trading:
Derivative is an instrument whose value is derived from the value of
one or more underlying, which can be commodities, precious metals,
currency, bond, stocks indices.
6. Introduction of rolling settlement:
From t+5 to t+2.
7. Demutualisation of the stock exchanges.
8. Corporatisation of stock exchanges.

7. Post Independence Scenario
 Closure of a lot of exchanges in the country.
 Exchanges Recognized under Securities Contract Act were :
 Bombay
 Calcutta
 Madras
 Ahmedabad
 Delhi
 Hyderabad
 Bangalore
 Indore
More Stock Exchanges were established during 1980’s

8. Features of Stock Market
 Organized Market
 Allow dealings just in recorded securities
 Deals in second hand securities
 Dealings only through authorized members

9. Growth of Stock Market
The main objective behind promoting the development of stock markets in
India was to contribute to raising capital and assisting its allocation process
in order to strengthen the Indian economy.

10. Roles of Stock Market
 Raising of Capital
 Mobilizing savings for investment
 Investment opportunities
 Risk Diversification
YEAR
ANNUAL TURNOVER
(NSE) Crores
2014-15 55606453.39
2015-16 64825834.30
2016-17 94370301.61
2017-18 164984859.05

11. BOMBAY STOCK EXCHANGE (BSE)
 First & Largest securities market in India
 Established in 1875 as the Native Share & Stock Brokers Association
 One of the largest exchanges in the world
 World’s 11th largest stock exchange as of July, 2017
 Facilitated the growth of the Indian Corporate Sector
 Major Corporates in India have sourced BSE’s services in raising resources
from the capital market
 “S & P BSE SENSEX” is India’s most widely tracked stock market benchmark
index.
 Internationally traded on the EUREX as well as leading exchanges of the
BRCS

12. SERVICES PROVIDED BY BSE
1) INVESTOR SERVICES
2) BSEWEBX.com
3) Surveillance
4) BSE On-line Trading (BOLT)
5) BSE Training Institute

13. National Stock Exchange(NSE)
 Leading Financial Institution.
 Wide Trading Facility & Equal Access to Investors.
 Major segments of Capital Markets.
 Major Roles includes :
 Raising Capital for businesses.
 Mobilizing savings for investments.
 Corporate Governance.
 Facilitating Company growth.

14. THANK YOU…