History of Indian Stock Markets
The Indian stock market traces its history back to the late 18th century when the trading floor was under the shade of a sprawling banyan tree opposite the Town Hall in Mumbai. A few people would meet under this tree to informally trade in cotton. This was mainly due to the fact that Mumbai was a busy trading port and essential commodities were traded here often. The Companies Act was introduced in 1850 following which investors started showing an interest in corporate securities. The concept of limited liability also put in an appearance around this time. By 1875, an organization known as ‘The Native Share and Stock Broker’s Association’ came into being. This was the predecessor of the BSE . In 1894, the Ahmedabad Stock Exchange came into being primarily with the objective of enabling dealing in the shares of textile mills in the city. The Calcutta Stock Exchange was formed in 1908 with the intention of facilitating a m...