1. Which is the oldest stock exchange in India?

The Bombay Stock Exchange (BSE) is the oldest in India, and is also the oldest in Asia. It was formally set up in 1875 as The Native Share & Stock Brokers Association by Premchand Roychand.

2. What is the role of SEBI in the Indian stock market?

SEBI (Securities and Exchange Board of India) is the main regulatory body of the securities market in India. SEBI was established with statutory powers in 1992, and its main objectives include protecting the interests of investors, promoting the development of the Indian financial market and regulating the securities market. It oversees stock exchanges, brokers, mutual funds and other market intermediaries and makes sure that they follow fair and transparent practices.

3. What is the difference between BSE and NSE?

While both of them are the main stock exchanges of India, BSE is much older (established in 1875) with more than 5000 listed companies. Its benchmark Index is Sensex (30 companies). The NSE is relatively new (founded in 1992), and it was the forerunner in setting up electronic trading in India and has a benchmark index, called the Nifty 50 . The NSE has more daily trading volume at present, in the derivatives (Futures & Options) segment.

4. What is the current settlement cycle for equities in the Indian stock market?

The present standard cycle of settlement of Equities is T+1 (Trade + 1 day), which was implemented in January 2023. This means that the funds and securities are settled on the next working day after the trade is conducted, which increases the capital efficiency and mitigates the risk to a great extent.

5. What is Dematerialisation (Demat)?

>Dematerialisation is the process of transforming physical share certificates into electronic or digital format. This system was brought to India in 1996 by the depositories (NSDL, CDSL, etc.) to eliminate the risks associated with physical share certificates, like fake certificates, theft, and delays in stock settlement.

History of the Stock Market in India

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Stock Market

History of the Stock Market in India

Stock Market

History of the Stock Market in India

The Indian stock market has experienced an evolutionary journey in the last 150 years. From the handful of traders under the shade of a Banyan tree in Mumbai, the Indian stock market has grown to one of the most advanced stock markets in the world.