India’s Market Journey—What Shaped It?

Explore the pivotal moments from 1947 to 1993 that transformed India's financial markets.

The Beginning of Regulations

In 1947, the Capital Issues (Control) Act required government permission to raise money by selling securities.

Birth of Securities Regulation

The Securities Contracts (Regulation) Act was enforced in 1956, recognizing stock exchanges and regulating securities transactions.

First Major Market Scandal

In 1957, the Mundhra scandal shook the market when LIC bailed out Mundhra’s companies, leading to the finance minister's resignation.

Sensex Launches

In 1986, the BSE Sensex was launched as India's first equity index, becoming a vital market indicator.

Harshad Mehta Scam

The 1992 Harshad Mehta scam led to a 12.77% Sensex crash, exposing massive market manipulation and fraud.

NSE Revolutionizes Trading

The NSE, recognized in 1993, brought screen-based trading, democratizing the market and restoring investor confidence post-scam.