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. It’s 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 Metha’s. As with the country’s 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 today’s 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 IPOSECONDARY 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 today’s 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.