While Indian subcontinent was cheering its independence in the year 1947, stock market suffered depression owing to partition. Lahore stock exchange was shut down and then merged with the Delhi Stock Exchange. The impact of world economy which was struggling post World War II, was also visible on Indian Stock Market too.
In the year 1947, the Capital Issues (Control) Act was enacted, which controlled securities that were introduced during World War II. The Act was governed by the office of Controller of Capital Issues (CCI) which came under Ministry of Finance.
Securities Contract (Regulation) Act was introduced in 1956 and all eight recognized stock exchanges came into its purview. Those 8 stock exchanges were - Bombay, Delhi, Calcutta, Madras, Ahmedabad, Hyderabad, Manglore and Indore. All the members, contracts in securities came under this Act. Also restrictions on issuing securities was enforced.
Both of these Acts were abolished in the year 1992 as a part of the liberalization and economic reforms in India. Securities and Exchange Board of India (SEBI) emerged as the absolute regulator of Stock Exchanges and members and all the activities carried on by and in the exchanges.
There were as many as 500 brokers at the time of independence registered with Bombay Stock Exchange. The number remain more-or-less same as the government policies which were Socialist and the strict regulations on the capital markets did not render positive for the stock market. Therefore the decade after the independence did not witness any major changes in the market and brokering was considered no serious occupation but gambling. Stock Market too was majorly dependent on speculations and hunches or brokers and were also manipulated a lot. Companies like Bombay Dyeing, Birla, Scindia, TELCO etc were investors/brokers favorites in those times.
Read more about the following decades !
The coming decades paved the way to a more structured markets and reforms that created the present day Stock Exchanges operating in India.
1950s
In the year 1947, the Capital Issues (Control) Act was enacted, which controlled securities that were introduced during World War II. The Act was governed by the office of Controller of Capital Issues (CCI) which came under Ministry of Finance.
Securities Contract (Regulation) Act was introduced in 1956 and all eight recognized stock exchanges came into its purview. Those 8 stock exchanges were - Bombay, Delhi, Calcutta, Madras, Ahmedabad, Hyderabad, Manglore and Indore. All the members, contracts in securities came under this Act. Also restrictions on issuing securities was enforced.
Both of these Acts were abolished in the year 1992 as a part of the liberalization and economic reforms in India. Securities and Exchange Board of India (SEBI) emerged as the absolute regulator of Stock Exchanges and members and all the activities carried on by and in the exchanges.
There were as many as 500 brokers at the time of independence registered with Bombay Stock Exchange. The number remain more-or-less same as the government policies which were Socialist and the strict regulations on the capital markets did not render positive for the stock market. Therefore the decade after the independence did not witness any major changes in the market and brokering was considered no serious occupation but gambling. Stock Market too was majorly dependent on speculations and hunches or brokers and were also manipulated a lot. Companies like Bombay Dyeing, Birla, Scindia, TELCO etc were investors/brokers favorites in those times.
Read more about the following decades !
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