Question

history of stock market in india

Answer 1

Few informal groups of Stock Brokers organized themselves in 1875 and were formally organized as Bombay Stock Exchange (BSE). In 1956, the Government of India recognized the Bombay Stock Exchange as the first Stock Exchange in the country under the Securities Contracts (Regulation) Act.

But still there was no means to measure the overall performance of the exchange. So, in 1986, Bombay Stock Exchange developed BSE Sensex (Sensex = Sensitive Index), an index of top 30 companies, which gave a means to measure the overall performance of the Exchange.
Until late 1980s, BSE ran with low transparency and an unreliable clearing and settlement systems. Towards the end of the 1980s, new economic forces, the economic growth and currency crisis emphasized the need for modernization of the financial system. Government created the Securities and Exchange Board of India (SEBI) in 1988.