Stock Exchange In India

When we hear the word Stock Market, one thing comes to our mind is high return with less safety. People invest in share market with various purposes like high returns, tax benefits and many others. In India, Stock Market was set up in 1875. At that time there were 22 brokers who met and established the Bombay Stock Exchange. From that time onwards, the Indian Stock market is growing in leaps and bounds and has became a forceful and competent stock market in the world. It is equal to any international market in the world. It has the same level of efficiency and organizational ability like global markets. The market caters to the huge population of India and gives them investment opportunities and also helpful to companies to raise their capital. The unpredictable nature of the Indian stock market has made it very difficult for the common man to understand it.

When it was started, the Bombay Stock Exchange had only a few hundred people taking membership in Stock Broker Association. In 1965, BSE was recognized permanently by the Government of India. The BSE and National Stock Exchange are both the main stock exchange of Indian stock market. The share market allows public trading of companies' shares and has become an important source of raising fund for the companies. The government has also formed the Securities and Exchange Board of India (SEBI) which controls the functioning of stock exchanges, investment advisors, portfolio managers, brokers and sub-brokers. The sensex is made on the basis of the performance of the stocks of 30 sound financial companies in BSE and nifty is made of 50 sound companies in the National Stock Exchange.

The Indian stock market is basically divided in two parts;  the primary part and the secondary part. In primary markets, new securities-shares are traded for the first time. Companies, government, or public sector units (PSUs) can issue securities in this market through Initial public offerings (IPOs), rights issue (for existing companies), and preferential issue. The secondary market, also known as the aftermarket, is the financial market where previously issued securities and financial instruments such asstock, bonds, options, and futures are bought and sold. However, the fact remains that most of the trading still occurs in secondary markets.

In the stock market, there are many fluctuations-ups and downs are there and that is the reason why many people want to away from the stock exchange. And after Harshad Mehta scam, investors became more aware about market and place where to invest. But at the same time many men and women, who trade in the market believe that everyone should invest in the stock market. Along with the man women are also do trading in the share market. And now a days, Indian Stock Market is one of the most competent and efficient market in the world.

So this is the glorious story of Indian Stock Market.


Now, I would like to end this post with a beautiful line....


 "Mumbai's Dalal Street is the only one place where people come in BMW to take advice on how to make more money from those who come in local trains."