You are on page 1of 2

Introduction

Securities market has essentially three categories of participants, namely the issuer of securities, investors in securities and the intermediaries and two categories of products, namely the services of the intermediaries, the securities including derivatives. The securities market has two interdependent and inseparable segments, the new issues (primary market) and the stock (secondary) market. The primary market provides the channel for sale of new securities while the secondary market deals in securities previously issued.

History
1850 Shares of banks and securities of East India Company traded in Mumbai under a sprawling banyan tree in front of Town Hall, which is now in the Horniman Circle Park.

1875 Brokers organized an association known as the Native Share Brokers Association, and the countrys first stock exchange the Bombay Stock Exchange (BSE), set up in Mumbai with 318 members. The membership fee gradually increased from Re 1 in 1887 to Rs 1,000 in 1896, and Rs 48,000 in 1920. 1956 Securities Contract Regulation Act passed

1957 The BSE and eight other stock exchanges registered under the Securities Trading Contract Act. 1982 The BSE classifies scripts into Group A for carry forward, and Group B for cash transactions. 1986 The BSE 30-share Sensitivity Index (a.k.a. the Sensex) compiled; updated every two minutes.

1987 Stock Holding Corporation of India set up.

1992 Ordinance promulgated for granting statutory powers to the SEBI. The Over-TheCounter Exchange of India begins operations. The National Stock Exchange incorporated. 1994 The NSEs debt segment begins operations on June 30; and the capital market segment begins on-line script less trading on November 3. 1995 The BSE computerizes its trading operations, signaling the end of 120 years of floortrading with open out-cry system of share-trading and the beginning of screen-based trading on the BSE.

1996 NSE 50 index launched April 22. NSDL set up as the first depository in India, and the NSE commences trading in dematerialized securities on December 26. 2000 The SEBI approves the report on net trading brought out by the SEBI committee on Net based trading and services. Pursuant to the circular, stock exchanges are required to give permission to members to start Net-based trading after ensuring fulfillment of the minimum conditions. The NSE is the first exchange to grant provisional permission to Cochin-based Geojit Securities to commence Net-based trading.