Stock Market Story

Established as an association in 1875, Mumbai Stock Exchange was born as an association in the year 1875, named ‘Native Share and Stock Broker Association’. Before this the deal for shares had started. In 1840 stock brokers would buy and sell shares while standing under a tree. From there the framework for forming the association came into shape and from this idea a historical event was realized. India was under British rule during that time. On January 18, 1899, British high official J. S. The words pronounced by Mechlin for the native stock brokers of Mumbai are still remembered with pride. Mechlin’s theory meant that Mumbai’s native stock brokers are an integral part of the society, who do not get proper respect, but their faults are only assessed. These stock brokers have been authentic, with no exceptions. No matter how much loss he has suffered, he has paid every penny to his customers. This is the largest market of capital in India. It has been helpful in raising institutions like Mumbai Post Trust and Mumbai Municipal Corporation from the bottom up. At present this native stock brokers have a remarkable role in the creation of Mumbai. This theory has been a reality for Mumbai stock brokers even in the 21st century. However, exceptions always appear in some form or quantity.

World’s first stock exchange

It is believed that the world’s first stock market was born in Belgium. In the Belgian city of Antwerp, many merchants had gathered for the main expansion of the market in the year 1531. He used to speculate in shares and commodities. The world’s first organized stock exchange was established in Amsterdam in the 1602nd year. The New York Stock Exchange existed in the late 18th century
Aya, which is counted among the powerful exchanges of the world today. During this time in India, buying and selling of Hundi and Bill of Exchanges was considered to be the general trend of the merchant class.

First share mania

In 1850, the Government of India passed the Companies Act-1850 and a new route of share trading opened. New because even before that shares were traded, but only nominally. It was not possible to accelerate this trend without a large number of shares available for trading. In those days, only a few shares like commercial banks, chartered banks, main bank stocks like The Oriental Bank and Bank of Bombay were available. People also had no interest in investing in shares. The evidence of share trading trend also remained low and it was being run by just 6 stock brokers. At that time there was neither a trading hall nor a stock exchange house. There was no necessary capital for this. Despite this, by the year 1860, the number of stock brokers had reached 60. One such in 1860 Individuals came to light who gave birth to the ‘Share Mania’. His name was Premchand Roychand. He was the first Indian stock broker who could read and write English.

Premchand Roychand had helped in setting up many companies including many land reclamation. The trend of stock deals increased and so did the number of stock brokers, from 200 to 250. After this, as a result of the end of the American Civil War in 1865, the flow of capital coming into India for its development decreased and ‘share mania’ also came to an end. Stock prices fell dramatically overnight. As a result, the workings of the stock brokers came to a standstill, due to which the idea of an association of stock brokers came to his mind and the stock brokers united and formed a non-formal association between 1868 and 1873. In 1874 these brokers discovered a site for making regular deals, today famous as ‘Dalal Street’.

On December 3, 1887, stock brokers gave formal form to this association and of ‘The Native and Stock Brokers Association Was born. In this way, in July 1875, only 318 persons formed the institution of Stock Market, Mumbai with an entry-fee of 1 rupee. They passed a resolution, in which it was decided to construct a hall or house for the use of the members of the association to protect the interest, status and appearance of the Native Share and Stock Brokers. This decision could not be carried out until 1887, but a trust deed was definitely made and the words written in this trust deed in 1887 became the foundation stones of the present Mumbai Stock Exchange. Thus today’s Bombay Stock Exchange (b. S. E.) The establishment of the famous Virat Sanstha was possible due to the meaningful efforts of these people. Thus, this journey, which started under a tree, is today moving towards development by making an important place on the global stage in the modern corporate form. This organised stock trading was started in the 18th century by trading term papers issued by the British East India Company for its diverse trends and capital raising, which was accompanied by trading in shares of banks such as Commercial Bank, Mercantile Bank of Bombay.

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