Stock Brokers History
The earliest existence of the stock market dates back to 18th century. The Indian Stock Market has been considered as one of the oldest stock markets in India. In the 1840s and 50s the number of stock brokers was around a dozen stock brokers. Shortly after that a group of 22 stock brokers gathered near a banyan tree after investing Rs.1. The group was controlled by the American War as India provided the demand for the cotton. The Native Share and Stockbrokers Association came into existence in 1875 and were restructured into the Bombay Stock Exchange.
The First Indian Stock Exchange
Premchand Roychand was the stock broker in charge at the time, and some of his practices in running the stock exchange are still being applied today. The Indian Government recognized the Bombay Stock Exchange as Indian first Stock Exchange in 1956. Almost 50 years later, the manner in which Harshad Mehta handled the market, shook the Bombay Stock Exchange and led to the need to bring in reforms. The need to reform gave rise to the National Stock Exchange that started trading on 4 November 1994.
The National Stock Exchange
The Bombay Stock Exchange had reformed but after that, could never match the success of the National Stock Exchange. In less than 12 months, the turnover of the National Stock Exchange exceeded the Bombay Stock Exchange. Although the Bombay Stock Exchange improved, the National Stock Exchange was so far ahead in generating turnover; BSE struggled to keep up. With several attempts that followed, the Bombay Stock Exchange tried to get ahead of the National Stock Exchange. The Bombay Stock Exchange tried to stop their progress. Two years after the installation of the Nse, they wanted to install the equity derivatives trading. The BSE counter attacked this endeavour and blocked equity derivatives trading for about 5 years with a derivatives training expert. The BSE pulled another attempt to dissuade the success of the NSE. Nothing worked as eventually NSE won 100% market share of equity derivatives trading. At present, the NSE continues to dominate the play ground and owns more profitable stock and BSE waits in second place.
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