THE STOCK BROKING IN INDIA

The functioning of stock broking in India was started in 1875. The BSE  oldest stock broking of India. History of Indian stocks trading starts with the 318 person taking membership in Stock Brokers Association and Native Share, which is known by name as Bombay Stock Exchange (BSE). In the year 1965, BSE got a permanent acknowledgment from Government of India which was most required. The National Stock Exchange arrives 2nd to the BSE in the terms of status. NSE and BSE represent themselves as the synonyms of the Indian stock market. History of stock market in India is almost same as history of BSE.
An up-beat mood of marketplace was lost abruptly with the Harshad Mehta scam. This came to the public knowledge that Harshad Mehta, who is also called as big-bull and giant of Indian stock market which diverted huge fund from banks by fraudulent means. He also played with millions of shares of many companies. For preventing such frauds, Government formed SEBI, through Act in 1992. The SEBI is statutory body which regulates and controls functioning of brokers, stock exchanges, portfolio manager investment advisors, sub-brokers, etc. SEBI obliged several tough measures to protect interest of investor. Now with inception of the online trade and every day settlements chances for fraud are nil, top official of SEBI says.

Sensex crossed 5000 mark in year 1999 and 6000 mark in year 2000. Foreign institutional investor (FII) is investing in stock markets in India on very large scale. Liberal economic policies pursue by successive Government attracted many foreign institutional investors towards large scale. The impulsive behavior and action of market dedicated it tag - 'volatile market.' The factors which affected market in past were the good monsoon, rise to power of Bharatiya Janatha Party's etc. The result of cricket matches between Pakistan and India also affected movements of stock broking in India. National Democratic Alliance which was led by BJP, in 2004 the public election unsuccessfully tried for riding on market sentiment to power. NDA is voted out of the power and sensex recorded biggest fall in day amidst fears which Congress-Communist coalitions would have stall economic reform.

India, after US hosts the large number of the listed companies. The Global investors now seek India as preferred location for the investment. Stock market now also appeals to the middle class Indians. Most of the Indian working in foreign country now diverts their savings to the stocks. This new phenomenon is result of diminished interest rate from banks and opening of the online trading. Stock brokers based in the India are opening office in different country mainly to cater needs of the Non Resident Indians. They can sell or buy stocks online while returning from work places. The recent incidents which led to the growing interests among all Indian middle class is initial public offer announced by ONGC, Maruti Udyog Limited, Tata Consultancy Services and many big names like such. A bullish run of stock market can associated with steady growth of  6% in GDP, growth of Indian company to MNCs, the large potential of the growth in fields of mass media, telecommunication, education, IT sectors and tourism backed by the economic reforms ensures that  the Indian stock market continue its bull run.