Personalities and Institutions

Following is the collection various NISM Study Material of Indian Securities Market. The NISM Study Material may be downloaded from the provided pdfs.

The article traces the evolution of SEBI from its conceptualization in the G.S. Patel Committee Report, 1985 to its establishment in the year 1988, its empowerment through legislation as a statutory body in the year 1992 and beyond. Accordingly, this article highlights the salient features of Acts such as the SEBI Act, 1992, the Depositories Act, 1996, the Securities Contracts [Regulation] Act, 1956, and the Companies Act, 2013. The article also delves into the details of the important legislative empowerment of SEBI through legislative amendments in the years 1995, 1999, 2002, 2004, 2014, 2015 and 2019.

The article explores SEBI's role in fostering the growth of the Indian securities market through transformative reforms, including derivatives trading, dematerialization, insider trading regulations, and the introduction of various investment products.

Following is the collection various Handbook of Statistics of Indian Securities Market. The Handbook of Statistics may be downloaded from the link provided.

The 1990s was a decade of significant change and transformation in India. This period witnessed economic liberalization, political developments, technological advancements, and cultural transitions.

Calcutta (now known as Kolkata), the political and commercial capital of British India till 1911, boasted a thriving stock market activity that served as the nation's first financial hub. The establishment of the Calcutta Stock Exchange (CSE) was a response to the growing need for an official stock exchange. During its heyday, Calcutta provided a plethora of trading opportunities through three distinct stock exchanges, namely the Calcutta Stock Exchange, the Bengal Share and Stock Exchange, the Stock Exchange Association of Bengal and informal exchanges at Gudri and Katni. However, with the change in time, only CSE continued its operations, and the other exchanges vanished/discontinued their operations. The CSE enjoyed the status of one of the most prominent stock exchanges for a long time and also modernised its operations with the introduction of electronic trading system. However, the challenges emerged from the payment crises of 2001 and the emergence of national-level electronic trading platforms offered by BSE and NSE, as a result of which CSE struggled to keep afloat. This eventually culminated in its trading suspension in 2013.

The Securities and Exchange Board of India was established in 1988 following recommendations from various committees and the need for regulatory oversight in the Indian capital markets

Madras Stock Exchange, established in 1920, was the first in the southern part of India. MSE played a notable role in the growth of industries in the southern region. By observing strict rules of conduct and ensuring high professional standards, MSE earned its esteem among the investing public as well as the entrepreneurs. In 1957, the Exchange registered itself under the Companies Act, 1955 and became a company limited by guarantee. The exchange was converted into a company limited by shares and obtained re-registration on November 18, 2005. MSE ensured to keep up with the technological advancements happening in the sphere of business. However, the expansion of national stock exchanges and the spread of their terminals all over India affected MSE, as did any other regional stock exchange. In 2001, MSE established its subsidiary company, MSE Financial Services Ltd. and acquired membership of NSE and BSE, through a provision provided by SEBI to the regional stock exchanges to revive their business. However, MSE decided to exit the stock exchange arena in 2014 and the same was stamped by the exit order passed by SEBI on May 14, 2015.

The BSE is the oldest stock exchange in Asia and its origins can be traced back to the 1850s. The establishment of the BSE was influenced by various factors related to trade and business in Bombay (now Mumbai), which was a prominent commercial centre during British rule in India.

SEBI previously followed a two-step process for registering market intermediaries, involving initial and permanent registration. However, to streamline the process and reduce compliance costs, SEBI decided to grant a one-step permanent registration to market intermediaries like merchant bankers, registrar to an issue and share transfer agent, bankers to an issue, underwriters, credit rating agencies, debenture trustees, depository participants, and KYC registration agencies.

History comes alive. Watch an interesting discussion of Mr. Pratip Kar, SEBI‘s longest serving Executive Director with Ms. Latha Venkatesh of CNBC. It is a rare insider‘s account of SEBI‘s origin, its initial struggles, its battles against major market scams, lots of untold stories and a candid take on its landmark successes you don‘t want to miss.

Listen to an in-depth conversation with Mr. Sundararaman Ramamurthy, MD and CEO of BSE, Asia’s first and fastest stock exchange. Established in 1875 as The Native Share and Stock Brokers’ Association, BSE has a rich legacy. This conversation covers a range of topics, from the evolution of stock exchanges to present-day market dynamics, including the role of technology, regulations, and more.

Interview with Shri Nehal Vora, MD and CEO of CDSL: Discover how decades of SEBI-led reforms turned a 19th-century, floor-traded market into a fully digital, AI-enabled ecosystem. Whether you’re an investor, policymaker or fintech enthusiast, this conversation with Shri Nehal Vora charts India’s unique journey from paper to pixels and previews what’s next for inclusive capital-market growth.

This video briefly tells the journey of SEBI

Interview with D R Mehta, Former Chairman of SEBI

This video is the first part of two video series showing the personalities which shaped the Indian securities market.

In continuation of earlier part, this video presents the personalities which shaped the Indian securities market.

Interview with Prashant Saran, Former WTM of SEBI

Interview with Mr. Sayeed Cassim, Scripophilist

Interview with Raman Uberoi, Senior Advisor Government & Regulatory Relations, Crisil and Member of SEBI's Market Data Advisory Committee

Development finance institutions have played a constructive role in establishing India's industrial base. However, these institutions seem to have moved away from their developmental role and are getting entangled deeper in management and control of private sector industries. Corporate circles have been pleading for a re-examination of the role and appointment of nominee directors to avoid day-to-day interference in company operations. Furthermore, some argue that financial institutions should keep their funds rolling by disposing of shares with a ready market. The concept of growth or mutual funds has yet to take root in the country, but such funds could prove successful in mobilising and canalising community savings for industrial development.

The unrepentant tone of the letter sent by Mr. Harshad Mehta to the CBI focuses attention on reforms urgently needed to make financial markets level playing fields for all. While big operators liquidated positions before prices fell, India lacks laws against such insider trading, allowing operators to take markets sky high with unauthorised bank accommodation. Furthermore, Mr. Mehta accused the Reserve Bank of India of quietly countenancing unconventional practices now called into question. What is now needed is enlightened leadership with the foresight to direct reform along correct lines

The Bombay Native Share and Stock Brokers' Association has formally applied for recognition under the Bombay Securities Contracts Control Act, 1925. The Association has submitted rules for the regulation and control of transactions in securities other than ready delivery contracts for sanction by the Governor-in-Council. Membership is restricted to British subjects or natives of India resident in the Presidency for ten years, with strict solvency requirements to ensure the integrity of the exchange

In a historic shift for the 122-year-old institution, Deena Mehta has been elected as the first woman director of the Bombay Stock Exchange. Seated in her office at Podar Chamber, 35-year-old broker Deena Mehta dismisses current political uncertainties, asserting that once the budget passes, it will signal to investors that economic reforms are irreversible regardless of who holds power at the Centre. She has a number of plans for improving the conditions at BSE including the speedy expansion of BOLT (Bombay On-line Trading) which will help attract more investors.

A report by Dr. P.J. Thomas calls for the establishment of a National Investment Commission, modelled after the US SEC, to suppress objectionable practices on Indian stock exchanges. Identifying "violent fluctuations" caused by reckless speculation as a major evil, Thomas recommends strict regulation of blank transfers, the abolition of "kerb" trading, and the enforcement of compulsory margins. He argues that only an independent quasi-judicial authority can effectively police the market.

Presidents of major Indian stock exchanges have proposed paying a lumpsum amount, shared equally between the exchanges and their members, to raise funds for SEBI. This counter-proposal, which opposes a turnover tax, suggests contributing Rs 50 lakhs for 1988-89 to the Union government for approval. BSE is expected to contribute the highest amount, while an earlier proposal for company contributions based on listing fees was rejected due to fears of delisting. Officials stated this funding formula would not burden investors. Ultimately, the goal is to evolve an elastic formula for funding SEBI until so required.

In an enquiry by the Stock Exchange Committee, Mr. Jamnadas Morarji, a 27-year veteran of the Exchange, put forward several reform suggestions in a detailed written statement. He suggested certain improvements in the building of the Exchange and to ensure the technical efficiency of the Exchange, he wanted to make membership conditional on a two-year apprenticeship. He believed that if members focused on cash rather than share business, they would help control speculation and bring government securities into the market. He also suggested that blank transfers should be done away with and that the managing committee be armed with powers to stop "cornering".

Mr. Meyer Nissim, an investor for 16 years, stated to the Bombay Stock Exchange Enquiry Committee that while the exchange rendered some good service in the past, latterly its conduct has left much to be desired. Dealings have assumed the nature of a deliberate gamble with rank speculation prevailing and working havoc, especially amongst the middle classes. To curb speculation, he suggested the "budlee" transactions should not be carried forward indefinitely and an independent Board of Appeal should be set up to settle disputes. He recommended outsiders be on the Stock Exchange Committee because the institution is for the benefit of the public, and their interests ought to be safeguarded.

The government has constituted a study group led by M.J. Pherwani, Chairman of the Stock Holding Corporation of India, to bring order to the proliferation of stock exchanges. The group will examine the need for establishment of new stock exchanges, keeping in view the requirements of balanced development of the securities in the industry and prescribe criteria for approval of new stock exchanges. With the number of recognized exchanges jumping from five in 1957 to nineteen currently, the group is tasked with establishing strict criteria for approving new bourses. The committee is expected to submit its roadmap by March 31, 1991.

Presiding at the annual general meeting of the Bombay Shroff Association, Kalyandas Bhaidas Shroff, the President made useful suggestions regarding the development of Shroffs’ business. He argued that Shroffs formed a very important and useful link in the banking system of the country are facing a severe setback due to the "unsympathetic and hostile attitude of Government". These institutions have deeply cut into the traditional Hundi business by offering drafts at nominal charges. To survive this onslaught, Mr. Shroff proposed a defensive consolidation: the establishment of a Hundi Clearing House and the standardization of Sharafi Adat.