Impact of Bank Failures on Indian Stock Exchanges: A Case of ‘The Native Share and Stockbrokers’ Association’ (1913-1918)

The history of bank failures dates back to a few centuries but recorded ones are as far back as 17th century. In the early 20th century, the world's financial landscape underwent significant transformation. As nations braced themselves for the impending chaos of World War I, India's economy had to confront multiple challenges. One of the most significant economic events during this period was the series of domestic bank failures between 1913 and 1921, which left an indelible mark on Indian stock exchanges. A notable case during this period was that of a prominent member of the Native Share and Stock Brokers Association (earlier known as Bombay Stock Exchange and now BSE), Mr. Jahangir Byramji, who had a substantial holding in Manekji Petit Mill shares, was adjudicated as an insolvent.