2. Stock Exchanges
The emergence of Capital Markets can be traced back to the second
half of the eighteenth century when the transactions were limited to loan
stock transactions of the East India Company. By
1830, some corporate stocks had emerged due to the economic boom
and establishment of textile mills.
A Stock Exchange means any body of individuals, whether incorporated
or not, constituted for the purpose of assisting, regulating or controlling
the business of buying, selling or dealing in securities.
The Bombay Stock Exchange was formalised in 1875 with the
establishment of 'Native Share and
Share Brokers Association'. The stock exchanges of Calcutta and
Chennai were established in
1908 and the Delhi Stock Exchange in 1947. There are 23 stock
exchanges in India and their organization varies. Some are public
limited companies (15), while others are limited by guarantees (5) or are
voluntary non-profit making organizations.