Indian Stock Markets are one of the oldest in Asia, its history dates back to nearly 200 years back. The initial records of security dealings in India are meagres and vague. The East India Company was the main institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century.
By 1830's business on corporate stocks and shares in Bank and Cotton presses have taken place in Bombay. Even if the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850.
The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted lots of men into the field and by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton deliver from United States of Europe was stopped; as a result, the 'Share Mania' in India begun, the number of brokers increased to about 200 to 250. But, at the end of the American Civil War, in 1865, a terrible slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87).
At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, established a place in a street (now appropriately called as Dalal Street) where they would easily assemble and transact business. In 1887, they officially established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as “The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899, so, the Stock Exchange at Bombay was consolidated.
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