THE INDIAN STOCK MARKET THEN

AND NOW.
The Indian Stock market has a major impact on the GDP of our country. They
are one of the sign which shows the effectiveness and the competitive power
over other countries. Stock market is the market place where investors buy
and sell stocks. The concept of market have been developed 200 years ago
where people in those days use to trade through BARTER SYSTEM, which
was merely exchanging one good for another, because of various defects in
barter system the concept of currency have been developed. In the starting
of the market exchange, people use to trade under banyan trees. In 1854
stockbrokers found a permanent address at Dalal Street, Mumbai ,the
markets were physical meeting of places, where buyer and gather together
and trade.
In 1875, the BSE (Bombay Stock Exchange) was established as the Native
Share and Stock Brokers Association. Its the oldest stock exchange in Asia. It
played a prominent role in the development of the Indian Securities market.
Later in 1993, the trading scenario underwent a paradigm shift with the NSE
(National Stock exchange) being introduced as the official Stock Exchange in
India. The major defect in those days was that the shares held by the
shareholders were also physical, which was in written form of papers. There
was a lot of chaos and confusion with the change in market rates. Investors
were often been cheated by the trade brokers in respect of price fluctuations.
Many frauds had taken place like Harshad Methas. As with the countrys
development on IT sector at present the exchange have converted to online
or electronically. There is no physical movement of the shares, and there is
no possibility of fraud because people can check the prices fall or rise with
the help of internet services.
With the ease in access and the mindset of todays generation which id
future oriented, have gained the popularity of investing in shares. The
startup business or an expanding venture can pool money through the
exchange. The goodwill of the company is known by its share price in the
market. Usually the cost of the share is fixed by the market forces. Apart
from shares of the companies, exchange of commodities, currencies,
derivatives, futures, bonds, securities, mutual fund, debts, etc , are also
traded. The market is divided in to forms:

PRIMARY MARKET: Is the channel for sale of new securities called IPO
SECONDARY MARKET: Where securities are traded after being initially
offered to public in the primary market
Market participants
Market participants include individual retail investors, institutional
investors such as mutual funds, banks, insurance companies and hedge
funds, and also publically traded corporations trading in their own shares. A
stockbroker is person who is licensed to trade in shares. They also have
direct access to the share market and can act as your agent in share
transactions. They charge a service fee i.e. brokerage and also can offer
additional services like advice on shares, debentures, government bonds and
listed property trusts and non-listed investment options (cash management
trusts,

property

and

equity

trusts.

Major stock broking firms in todays scenario are KOTAK SECURITIES LTD,
ADITYA BIRLA MONEY, INDIABULLS SECURITIES, RELIANCE MONEY,
SHAREKHAN LTD, ANGEL BROKING LTD.
For anyone who wants to trade, according to the market regulator, the
Securities and Exchange Board of India (SEBI), has made it compulsory to
open the demat account to buy and sell stocks. A person want to buy/sell
stocks in the stock market has to first place his/her order with a broker or can
do themselves using online trading systems. The stocks purchased will be
sent to the demat account. This process is called Rolling Settlement Cycle.
Career opportunity for the younger finance aspirants seems to be very
attractive in terms of money and the growth. As that the stock exchange is
now seen increasingly for what it really is, namely an essential financial
infrastructure for any economy. It is this view of the exchange as
infrastructure that motivated the Indian government to encourage the
establishment of the National Stock Exchange of India at Mumbai, which in a
few short years completely revolutionized the Indian capital market. The
transparency of the price discovery process which results, especially in

technology driven stock exchanges encourages participation in economic

activity and enhances the efficient utilization of resources.