Indian Financial Markets

Topics: Stock exchange, Investment, Stock market Pages: 3 (841 words) Published: July 10, 2013
Financial Markets
Some of the oldest financial markets could be found in India. There are 21 securities exchanges in India including Mumbai, Ahmedabad, Kolkata, National Stock Exchange (NSE), and the Over the Counter Exchange (OTEC) of India. India has the fastest growing and the best financial market within the emerging countries. The Indian’s stock market was very stagnant until the 1990’s due to the lack of competition in many industries. The major industry sectors were controlled by monopolies. Until the 1990’s, many of the industries were controlled by the state. After the industries were opened to competitions, the Indian stock market saw a huge growth in IPOs and new companies. The creation of the new companies resulted in the fast growth in the Indian stock market.

During the period where India saw a huge growth in its stock market, many of countries in the Middle East also saw some growth in their stock markets. Unlike India, which growth was fueled by changing its industries from government owned to public owned, the Middle East countries stock markets were fueled by Foreign Direct Investments.

In the 1990’s, the NSE and OTCE was created to improve transparent and make it easier to trade securities. The NSE was created to trade securities of large scale sector companies and the OTCE was created to trade securities of small scale sector companies. When the NSE and OTCE were created, their growth was slow due the lack of IT. After the integration of IT, the exchanges became profitable and were able to compete with the other global exchanges. The Indian capital market is regulated by the Securities and Exchange Board of India (SEBI). NSE

The NSE is used to trade capital market securities, derivatives, and debt. There are two type of equities traded at the NSE, the primary market and secondary market. The primary market is used to trade new securities and the secondary market is used to trade matured securities. There are 1,300 securities traded...
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