India - News
over 20 million shareholders, India has the third largest investor base
in the world after the USA and Japan. Over 9,000 companies are listed on
the stock exchanges, which are serviced by approximately 7,500 stockbrokers. The Indian
capital market is significant in terms of the degree of development, volume of trading and
its tremendous growth potential.
Worldwide Stock Markets
Source: ETIG, November 2010/ August 2007
||% of world m-cap 2010
||Market cap (US$ b)
Stock Exchange (BSE), one of the oldest in the world,
accounts for the largest number of listed companies and has also started a screen-based
trading system with the introduction of the Bombay On-Line Trading system.
are 23 recognized stock exchanges in India, including the Over the Counter Exchange of
India (OTCEI) for small and new companies and the National Stock Exchange (NSE) which was
set up as a model exchange to provide nation-wide services to investors. NSE, which in the
recent past has accounted for the largest trading volumes, has a fully automated screen
based system that operates in the wholesale debt market segment as well as the capital
market capitalization was amongst the highest among the emerging markets. Total market
capitalization of the BSE as on July 31, 1997 was Rs 5,573.07 billion
growing by 18 percent over a period of twelve months and as of August 2007 was over
$1090 billion (over Rs 43 lakh crores).
emerged as the world’s 10th largest equity market after it added
several companies to the billion dollar club in terms of capitalization,
taking the total to 81 companies. India has become
the third largest Asian market (excluding Japan and Australia) after having
toppled Korea, China and Singapore that have 80, 50 and 47 firms with
billion-dollar market capitalization respectively. India is also inching
closer to outpacing Taiwan that has 84 such companies but lags far behind
Hong Kong which has 107, the highest in Asia.
Assets under management (AUM)
by the Indian Mutual Fund industry
Rs 7,20,000 crore
Rs 6,00,000 crore
Rs 1,13,005 crore
In India, there are 33 registered
Mutual Fund houses. While income funds accounted for 49% of the total assets
and equity or growth funds had 26% of the total assets. Balanced funds,
gilt funds, ELSS and
money market funds
accounted for the rest (2008).
number of companies listed on the BSE at the end of December 1994 was 4,702. This was more
than the aggregate total of companies listed in 9 emerging markets (Malaysia, S.Africa,
Mexico, Taiwan, Korea, Philippines, Thailand, Brazil and Chile). The number of companies
was also more than the that in developed markets of Japan, UK, Germany, France, Australia,
Switzerland, Canada and Hong Kong.
is a large presence of FIIs in the Indian capital market with over 451 FIIs and 38 foreign
brokers registered with SEBI.
FII's have pumped in $100
billion into Indian markets (2010-11), compared to $8.5 billion in
entire 2004 and $6.6 billion in entire 2003.
capital markets in India are regulated by the Securities and Exchange Board of India
(SEBI) under the provisions of the Securities Contracts (Regulations) Act, 1956 and
Securities and Exchange Board of India Act, 1922. SEBI has issued detailed guidelines for
capital issues, disclosure by public companies and investor protection.
- India has the third largest investor base in the world.
India's BSE has the second most number of companies listed in the world
after the NYSE.
- India is
world's 8th largest equity market (2010).
- In August 2007, total m-cap of the Indian stock exchanges was over
Indian Mutual Funds hold Rs. 7,20,000 Cr. in assets as of 31st
Total FII investment in India stood at $12 billion by April