Indian Stock Markets
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) 2007
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.
There 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 segment.
India's 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
(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.
under management (AUM) by the Indian Mutual Fund industry
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
funds/ money market funds accounted
for the rest (2008).
The 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.
The 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
- 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 $1090
- Indian Mutual Funds hold Rs.
7,20,000 Cr. in assets as of 31st Juy, 2009.
- Total FII investment in India stood at $12
billion by April 2005