India Share Market
It was in 1875 that the India Share Market first started functioning. The first share trading association in India was known as the Native Share and Stock Broker's Association, only to become the Bombay Stock Exchange (BSE) later on. This trading association started off its operations with around 318 members. Main components of India Share Market –

1. Bombay Stock Exchange (BSE)
2. National Stock Exchange (NSE)

Bombay Stock Exchange (BSE)

Bombay Stock Exchange is known to be the oldest stock exchange in the entire Asian region. If someone wants to know about the history of the India share market, it becomes synonymous with the history of the Bombay Stock Exchange. It started functioning in 1875 with the name 'The Native Share and Stock Broker's Association'. Under the Securities Contracts (Regulation) Act, 1956, the association got its recognition as a stock exchange in 1956. When it started, it was just an association of persons but with the recognition it got transferred to a corporate and demutualised entity.

As of today, Bombay Stock Exchange happens to be the number 1 exchange globally in terms of the number of listed companies and ranks 5th in terms of the transactions worldwide. An investor has the option of choosing from more than 4,700 listed companies – which are segmented into A, B, S, T and Z groups for easy reference.

Trading items in Bombay Stock Exchange –

• Equity or Shares
• Derivatives (Futures and Options)
• Debt Instruments

The main index of BSE is known as the BSE SENSEX or simply SENSEX (Sensitivity Index). It is an index which comprises of 30 financially sound company scrips, with an option to be reviewed and modified from time-to-time. The index calculation is based on the 'Free-float Market Capitalization' methodology. Leading bourses like the Dow-Jones also follow this methodology. Currently the Sensex is hovering around the 17,000 mark, all expected to touch 20K by 2010. But then volatility has its important role to spoil the entire game. The market capitalisation of the Bombay Stock Exchange was over one trillion dollars as on May 2009.

National Stock Exchange (NSE)

National Stock Exchange (NSE) is considered to be the leader in the stock exchange scenario in terms of the total volume traded. The market capitalisation the National Stock Exchange touched about $921.31 billion at the end of May 2009.

The National Stock Exchange received the recognition of a stock exchange in July 1993 under Securities Contracts (Regulation) Act, 1956. The products that are traded in the

National Stock Exchange are:-

• Equity or Share
• Futures (both index and stock)
• Options (Call and Put)
• Wholesale Debt Market
• Retail Debt Market

NSE has a fully automated screen based trading system which is known as the NEAT system. The transactions are carried on with speed, efficiency, and are all transparent. The risk management system of the National Stock Exchange is world class and can be considered as the benchmark for other bourses.

The leading index of NSE is known as Nifty 50 or just Nifty. It comprises of 50 diversified benchmark Indian company scrips and is constructed on the basis of weighted average market capitalization method.

Regulatory Authority of Indian Share Market –

SEBI or Securities and Exchange Board of India is the market watchdog and has the responsibility of protecting the investors' interests, develops regulatory norms and helps in the development of the securities market in India.

Indian Share Market is definitely a crystal clear reflection of the overall performance of the Indian Corporates. So, with the Indian Share Market going on a positive path, gives a ready signal that the India Inc. is on a robust growth trajectory.

Why to invest in India share market –

• An investor does not require a lot of money to start investing in India share market unlike buying property and paying off a monthly mortgage.
• Time of trading involved spans from small to big. One can trade for a short period of time or even a lengthy span.
• It helps you to see 'fast' cash if the market is in robust mood and helps in fast liquidation.