History of the Stock Market in India The history of the stock market in India goes back to the end of the eighteenth century when long-term negotiable securities were first issued. In 1850 the Companies Act was introduced for the first time bringing with it the feature of limited liability and generating investor interest in corporate securities. The first stock exchange in India was set-up in 1875 as The Native Share and Stock Brokers Association in Bombay. Today it is knows as the Bombay Stock Exchange (BSE). This was followed by the development of exchanges in Ahmedabed (1894), Calcutta (1908) and Madras (1937). It is interesting to note that stock sxock exchanges were first set up in major centers of trade and commerce. Until the early 1990s, the Indian secondary market comprised regional stock exchanges with BSE heading the list. After the reforms of 1991, the India secondary market acquired a three tier form. This consists of :
Regional Stock Exchanges
National Stock Exchange (NSE)
Over the Counter Exchange of India (OTCEI ) stock exchange.
What do you mean by a stock exchange?

Explanation

Stock exchange Secondary market is also known as the stock market or stock exchange. In this market, securities are not directly issued by the company to investors but it is sold by existing investor to other investors.
It provides liquidity and marketability to existing securities. It also contributes to economic growth by channelising funds into the most productive investment, through the process of disinvestment by exiting investors and reinvestment by new investors. Securities are cleared and settled within the regulatory framework of SEBI.