The capital market facilitates the buying and selling of securities to enable the optimal utilization of resources, continuous availability of funds, proper regulation of funds mobilization, and acceleration of economic growth and development. The Indian capital market has evolved since the 18th century, with the establishment of the Bombay Stock Exchange in 1875 and introduction of regulations in the 1950s. Liberalization in the 1990s led to rapid growth, including the establishment of the National Stock Exchange in 1992 and increased foreign institutional investment. The capital market plays an important role in capital formation and development of the Indian economy.

1. §§

4. Role and Functions of Capital
Market
Capital
Formation
Facilitate
Buying &
Selling of
Securities
Optimum
Utilization of
Resources
Continuous
availability
of funds
Proper
Regulation of
funds
Mobilization of
savings
Speed up
economic
growth &
Development

6. Nature of Capital Market

8. TYPES OF CAPITAL MARKETS

9. FEATURES OF PRIMARY MARKET

16. It dates back to 18th century when British East India
Company’s securities trading in 1830s.
Until 19th century it was unorganized
During the American Civil War(1860-61) Bombay
was an important source of supply for cotton, this
resulting boom in share prices. This boom was the
1st in the history of Indian CM
In 1875 BSE came into existence and Native share
and Stock Brokers association associated.
During post independence period also CM remains
same (1st and 2nd 5 years plan)

17. In the 1950s century Textiles, Tata Steel, Bombay
Dyeing, National Rayon, Kohinoor Mills were the
favourite scripts of speculators. Despite speculation,
non-payment or default were very frequent.
Therefore, the government enacted the Securities
Contract Act 1956.
In 1960s was characterized by the Wars and the
Droughts impact of this led bearish trends, decrease
in capital market of India.
After that some financial institutions took place such
as LIC, GIC etc., led to improve in CM
Bangalore Stock exchange limited was recognized
in 1963

18. Later came buoyancy in the stock market when the
MNCs were forced to dilute their majority stocks in
Indian ventures in favour of the Indian Public under
FERA. 123 MNCs offered share worth Rs. 150
crore, this create 1.8Mn shareholders within 4 years.
In 1977 a little know entrepreneur Dhirubhai
Ambani tapped the Capital Market in the script
Reliance textiles is still a hot favorite and dominants
trading in all the stock exchanges
LPG in 1991 led to massive growth in Indian CM
In 1992 NSE came into existence and FII were
allowed in Indian CM, the Indian companies were
allowed to raise GDR and FCCB.

19. ORIGIN OF CM IN ABROAD
For the first time the concept of CM begun in
Amsterdam by Hendrik De Keyzer of VOC company
World’s first stock exchange is Rokin in 1611
At the 17th century America, France, England and
Russia gained the awareness about secondary
market.
World’s largest stock market is Newyork stock
exchange

20. HISTORY OF BSE
It found in 1875 as 1st stock exchange in India and
oldest in Asia
It is playing very important role in development of
country’s CM with over 6000 listed companies.
Which obtained permanent reorganisation in 1956
from the govt. Of India under Securities contract
Act 1956
Initially BSE adopted ‘Open Outcry’ system
Presently BSE is the world’s number 1 in listed
companies and 5th place in transaction.

21. HISTORY OF BSE
It has wide range in India with 450 cities and town
and 25000 work station
In 2001, BSE introduced world’s first centralized
exchange based internet trading system
The BSE developed the BSE sensex in 1986, to
measure overall performance of the exchange

22. NSE History
NSE of India was incorporated as a joint stock
company under company act
On Nov 27, 1992 the govt of India has granted
recognition as a securities exchange under the
securities contract act 1956, its effect from April
1993 as competitor to BSE
It had been established with the electronic stock
exchange in 1992
After two years of operation NSE become the
largest stock exchange in India

23. NSE History
NSE takes the 14th position in the world
In 1996, NSE launched S & P, CNX, Nifty and CNX
Junior Indices
In 1998 NSE launched its website
For the 1st time India it started trading on internet
in 2000
It has some award, such as Best IT usage award by
Computer Society in India and CHIP web award by
CHIP magazine etc