Authors :
Gurunathreddy
Volume/Issue :
Volume 10 - 2025, Issue 7 - July
Google Scholar :
https://tinyurl.com/kyv6kp8y
Scribd :
https://tinyurl.com/msppvd5d
DOI :
https://doi.org/10.38124/ijisrt/25jul1009
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Abstract :
This paper offers an in-depth historical exploration of the Indian stock market, tracing its transformation from
informal trading networks in mid-19th century colonial Bombay to the establishment of technologically advanced
institutions like the National Stock Exchange (NSE) by 2024. With the formation of the Bombay Stock Exchange (BSE) in
1875—Asia’s earliest organized stock exchange—as a pivotal milestone, the study examines how India's capital markets
evolved amid changing political landscapes, economic policies, regulatory shifts, and rapid technological advancements.
Key stages of this evolution include the contributions of native business communities, the impact of colonial financial
structures, post-independence regulatory developments, the liberalization era of the 1990s, and the digital modernization
of trading systems in the 21st century. Viewed through this historical framework, the paper highlights the vital role of
stock markets in mirroring and influencing India’s economic growth. It also emphasizes the enduring strength and
flexibility of Indian financial institutions in adapting to both domestic changes and global economic trends.
Keywords :
BSE, NSE, SEBI, Indian Stock Market, Capital Market Evolution, Financial Reforms, Stock Market History, Colonial Bombay, Economic Liberalization, Regulatory Framework, Financial Institution, Digital Transformation.
References :
- R. Mehta, An Overview of Early Trading Practices in Bombay, Bombay University Press, 1956.
- D. Choksey, “The Role of Merchant Communities in Shaping Indian Capitalism,” Economic & Political Weekly, 1974.
- A. Gupta, Colonial-Era Financial Systems and Indigenous Networks, Oxford University Press, 2006.
- R. Kothari, “Government Regulation and the Development of Indian Capital Markets,” Indian Journal of Economics, 1987.
- S. Ray, The Contribution of Regional Exchanges to Industrial Finance in India, Calcutta University Press, 1992.
- M. S. Ahluwalia, “Post-1991 Economic Policy Changes and Liberalization of Capital Markets,” Planning Commission of India Reports, 2002.
- A. Shah and S. Thomas, “Empirical Analysis of Market Efficiency in the NSE,” Journal of Financial Economics, 2001.
- V. Joshi, Enhancing Accessibility and Transparency in Indian Capital Markets, NSE Working Paper Series, 2008.
- A. Banerjee and S. Roy, “Regulatory Oversight and Investor Trust under SEBI,” Indian Journal of Finance, 2004.
- R. Singh and P. Mehta, “The Impact of Derivative Trading on Market Liquidity in India,” NSE Research Bulletin, 2006.
- K. Sharma and D. Kumar, “Foreign Institutional Investment and Its Influence on Market Volatility,” Journal of Emerging Market Studies, 2007.
- A. Basu and V. Raghunathan, Technology-Driven Participation in Capital Markets by Retail Investors, IIM Bangalore Working Paper Series, 2020.
- S. Sundaram, Contemporary Structural Challenges in the Indian Stock Market Ecosystem, SEBI Research Reports, 2019.
- A. Vohra and M. Bhardwaj, Assessing Financial Awareness Among Small Investors in India, NCAER Reports, 2015.
- Securities and Exchange Board of India, Annual Report 2021–22, Mumbai: SEBI, 2022.
- National Stock Exchange of India, NSE Fact Book 2022–23, [Online]. Available: https://www.nseindia.com
- BSE Limited, Annual Report 2021–22, [Online]. Available: https://www.bseindia.com
- Reserve Bank of India, Handbook of Statistics on Indian Economy, 2021.
- The World Bank, Financial Inclusion and Development Indicators in South Asia, World Bank Publications, 2023.
- P. K. Narayan and S. Sahminan, “Volatility Spillover Effects in South Asian Equity Markets,” Journal of Asian Economics, vol. 75, p. 101330, 2021.
- M. Desai and R. Singh, “High-Frequency Trading and Liquidity Trends in Indian Equity Markets,” Indian Journal of Capital Markets, vol. 15, no. 2, pp. 55–72, 2023.
- A. Tripathi and A. Rajput, “Emerging Trends in ESG Investing within Indian Capital Markets,” Asian Journal of Finance & Sustainability, vol. 11, no. 1, pp. 88–101, 2024.
This paper offers an in-depth historical exploration of the Indian stock market, tracing its transformation from
informal trading networks in mid-19th century colonial Bombay to the establishment of technologically advanced
institutions like the National Stock Exchange (NSE) by 2024. With the formation of the Bombay Stock Exchange (BSE) in
1875—Asia’s earliest organized stock exchange—as a pivotal milestone, the study examines how India's capital markets
evolved amid changing political landscapes, economic policies, regulatory shifts, and rapid technological advancements.
Key stages of this evolution include the contributions of native business communities, the impact of colonial financial
structures, post-independence regulatory developments, the liberalization era of the 1990s, and the digital modernization
of trading systems in the 21st century. Viewed through this historical framework, the paper highlights the vital role of
stock markets in mirroring and influencing India’s economic growth. It also emphasizes the enduring strength and
flexibility of Indian financial institutions in adapting to both domestic changes and global economic trends.
Keywords :
BSE, NSE, SEBI, Indian Stock Market, Capital Market Evolution, Financial Reforms, Stock Market History, Colonial Bombay, Economic Liberalization, Regulatory Framework, Financial Institution, Digital Transformation.
