medium and long term investors, short-term swing and position traders andvery intraday traders.The Indian market has 22 stock exchanges. The larger companies areenlisted with BSE and NSE. The smaller and medium companies are listedwith OTCEI (Over The counter Exchange of India). The functions of theEquity Market in India are supervised by SEBI (Securities Exchange Boardof India).
The history of the Indian equity market goes back to the 18th century whensecurities of the East India Company were traded. Till the end of the 19thcentury, the trading of securities was unorganized and the main tradingcenters were Calcutta (now Kolkata) and Bombay (now Mumbai
The Indian Equity Market was not well organized or developed beforeindependence. After independence, new issues were supervised. The timing,floatation costs, pricing, interest rates were strictly controlled by theController of Capital Issue (CII).
or four and half decades, companies weredemoralized and not motivated from going public due to the rigid rules of the Government. In the 1950s, there was uncontrollable speculation and themarket was known as 'Satta Bazaar'. Speculators aimed at companies likeTata Steel, Kohinoor Mills, Century Textiles, Bombay Dyeing and NationalRayon. The Securities Contracts (Regulation) Act, 1956 was enacted by theGovernment of India.
inancial institutions and state financial corporationwere developed through an established network.In the 60s, the market was bearish due to massive wars and drought.
orward trading transactions and 'Contracts for Clearing' or 'badla' were