The Indian stock market has a rich history dating back to the 19th century. The earliest known securities trading in India took place in the late 1700s in Bombay, where shares of East India Company were traded. The first stock exchange in India, the Bombay Stock Exchange (BSE), was established in 1875. The BSE is the oldest stock exchange in Asia and one of the first in the world.
In the first section we will look at the history and then briefly check out how to open a DEMAT account to invest in the stocks.
- In the early days, stock trading in India was mostly restricted to the wealthy elite. However, over time, the Indian stock market has grown and evolved to become more accessible to a wider range of investors. The National Stock Exchange (NSE) was established in 1992, and it quickly became one of the largest stock exchanges in the world, rivalling the BSE in terms of trading volume. The NSE introduced electronic trading, which made it much easier for investors to buy and sell shares, and it also helped to increase transparency and reduce the cost of trading.
- The Indian stock market has been through its fair share of ups and downs over the years. The market experienced a major crash in 1992, which was caused by a combination of factors including economic liberalisation, high interest rates, and a lack of investor confidence. However, the market recovered quickly, and by the late 1990s, the Indian economy was growing rapidly, which helped to boost the stock market.
- In the early 2000s, India’s economy continued to grow, and the stock market reached new highs. This was followed by the global financial crisis of 2008, which had a significant impact on the Indian stock market. However, the market has since recovered, and in recent years, it has been one of the fastest-growing stock markets in the world.
- One of the most significant developments in the Indian stock market in recent years has been the introduction of a new way of trading shares, called the DEMAT account. A DEMAT account is an electronic account that holds shares in a Dematerialized form, rather than in physical form. The DEMAT account allows investors to buy and sell shares quickly and easily, and it also reduces the risk of fraud and errors associated with physical share certificates.
How to open Demat Account?
If you are interested in investing in the Indian stock market, it is essential to open a DEMAT account. It is relatively easy to open a DEMAT account, you need to approach any of the Depository Participants (DP) like banks, brokerage firms, etc that are registered with National Securities Depository Limited (NSDL) or Central Depository Services Limited (CDSL). You will need to fill out an application form and provide proof of identity and address. You will also need to link your bank account to your DEMAT account so that you can transfer funds to buy shares. Once your account is set up, you can start buying and selling shares on the stock exchange.
In conclusion, the Indian share market has a rich history dating back to the 19th century. It has grown and evolved over time to become more accessible to a wider range of investors. The introduction of DEMAT account has made it easy to trade shares and reduce the risk of fraud and errors.