Stock Market in India

The Stock Market in India like other stock markets across the world provide for the trade of equity shares, and commodities pertaining to public companies in India as well as of the world. The shares actually provide information about the performance of the company. Higher the value of the share means that the company is making profit. The Stock Market in India is an important part of the Indian economy and the yardstick for the growth of the economy of the country.

The Mumbai (Bombay) Stock Exchange is the oldest stock exchange pertaining to the stock market in India. It was set up in the year 1875. There are around 6000 companies shares listed under the Mumbai (Bombay) Stock Exchange.

Presently there are about 22 stock exchanges in the stock market in India. There are other stock exchanges in the stock market in India such as Calcutta, Bangalore, Chennai, Ahmedabad, Delhi, etc. The stock market in India also has a National Stock Exchange (NSE) situated in Mumbai. The stock market in India comprises of an Over The Counter Exchange of India (OTCEI) for the listing of the medium sized and small sized organizations. The Securities and Exchange Board of India (SEBI), which is a regulatory organization overseeing the working of the stock exchanges in India.

The National Stock Exchange can be contacted at:

National Stock Exchange
Mahindra Towers "A" Wing, 1st Floor,
Worli, Mumbai.
Tel : 022-4960525, 4932555.
Fax : 022-4935631

The Stock Market in India serves as a platform for infrastructural development and expansion plans of the new companies. The companies may raise funds through the distribution of their equity shares to the public. Transparency is a very important factor for a company to trade in the stock market. The major fundamentals of the company which influences the investors are income, liabilities, revenues, assets, infrastructure, etc and the company has to be very transparent about these facts.

Opportunities for foreign investors in Stock markets in India

• Direct Investment opportunities for foreign investors in Stock markets in India: The stock market in India now allow the foreign companies to hold majority shares of the India companies apart from some restricted companies. Some companies the foreign stake may be 100%.
  
  
• Investment through Stock Exchanges in Stock markets in India: The Foreign Institutional Investors (FII) may operate in the Stock markets in India being registered with the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI)