A comprehensive, authoritative account of the history of stock market in India — when stock market started in India, who started it, the first share market milestones, the sensex launch, NSE & SEBI reforms, demat, derivatives and the retail surge up to 2025.

History of Stock Market in India – Complete Timeline 2025

Executive summary — what you will learn

This guide covers the timeline from informal broker meetings in the 19th century to the formal establishment of the first exchange, regulatory milestones, the creation of benchmark indices, the dematerialisation era, the rise of derivatives, and the retail-led growth phase up to 2025. It resolves common search queries such as when did stock market start in India, share market started in India, and history of Indian stock exchange.

Why this topic ranks — search intent and content gaps

People searching for history of stock market in India want firm dates, founder names, and credible sources. They also want context: how historical events affect trading today. This article fills gaps by combining dates, explanations and practical takeaways for traders and students.

Origins: informal trading and the first gatherings (1850s–1875)

Trading activity in then-Bombay began informally. Brokers and indigenous financiers gathered near the Town Hall and under banyan trees to exchange instruments and cotton-related securities. These meetings were the earliest signals of organised market activity. The term used in historical records, often appearing in archives, points to the Native Share & Stock Brokers' Association as the natural institutional successor to these gatherings.

1875 — The Native Share & Stock Brokers' Association and the birth of the first share market in India

In 1875, broker-organisers consolidated operations more formally, which historians consider the practical start date for a structured exchange in India. That association later evolved into the exchange located on Dalal Street — which with time came to be recognised as the Bombay Stock Exchange. Many queries such as share market started in India and the first share market in India was established point to this era.

Early institutionalisation and growth (late 19th to mid-20th century)

Throughout the late 1800s and early 1900s, the market matured slowly. Broker houses, merchant banks and trading firms set up practices for membership, brokerage and settlement. While operations were still localised, these developments laid the foundation for modern rules and practices that appear in later legislation.

Legislative foundation: Securities Contracts (Regulation) Act, 1956

The Securities Contracts (Regulation) Act of 1956 provided a legal framework for recognition of exchanges and regulation of trading practices. The act is a turning point in the formal history of the stock exchange in India because it enabled proper recognition, oversight and dispute resolution mechanisms.

Sensex: India’s first major benchmark (1986)

In 1986, BSE introduced the Sensex — a 30-stock benchmark that allowed market participants to measure aggregate performance and sentiment. The Sensex's launch is often cited in searches for history of stock exchange in India and history of Indian stock market because it symbolised professionalisation of market analytics.

Liberalisation and the NSE revolution (1991–1994)

The economic liberalisation of 1991 dramatically altered India’s financial landscape. This era saw new institutions, foreign capital inflows and a drive to modernise market infrastructure. In 1992, SEBI obtained statutory authority under the SEBI Act, giving it stronger regulatory power. Also in the early 1990s, the National Stock Exchange was established with an electronic, screen-based, nationwide trading system, which changed how orders were matched and executed across India.

Dematerialisation and NSDL/CDSL (mid-1990s onward)

The creation of demat systems removed the need for physical certificates, reducing settlement risk and speeding transfers. NSDL (and later CDSL) were set up to hold securities in electronic form. This transformation addressed one of the major bottlenecks in the history of share market in India and laid the groundwork for scalable retail participation.

Derivatives, rolling settlements and market sophistication (late 1990s–2000s)

The late 1990s saw the introduction of derivatives (futures and options), index-based products and rolling settlement cycles (T+2). These innovations allowed traders to hedge risk and facilitated complex trading strategies. Many learners asking about history of stock market will find that derivatives mark a key leap from a purely cash market to a layered financial ecosystem.

Technology, algorithmic trading and high-frequency strategies (2000s)

As technology matured, algorithmic trading and automated order routing began to appear. Exchanges implemented co-location services, and institutional participants adopted systematic strategies. These changes explain why modern market behaviour can differ sharply from earlier decades.

Retail expansion and the app revolution (2010s–2025)

From 2010 onwards, the rise of mobile apps, zero-commission brokers and fractional investing ushered millions into the market. The growth in demat accounts and ease of access led to record participation, and by 2024–2025 retail volumes became a major component of daily trading activity. This period answers the question of how modern retail influence shaped market microstructure in India.

Major crises and regulatory responses

The market endured several shocks — global financial crises, sharp domestic corrections and liquidity squeezes. Each event triggered changes in surveillance, disclosure requirements and clearing norms. Regulatory bodies implemented circuit breakers, enhanced surveillance and better investor education to strengthen market resilience.

Key dates & facts (concise reference)

1. 1850s–1870s: Informal broker meetings in Bombay.
2. 1875: Native Share & Stock Brokers’ Association formed (precursor to BSE).
3. 1956: Securities Contracts (Regulation) Act passed.
4. 1986: BSE Sensex launched.
5. 1992: SEBI gains statutory power; NSE established (electronic trading).
6. 1996–2000: Demat and NSDL mature; rolling settlements introduced.
7. 2000s: Derivatives and index products expand.
8. 2010–2025: Retail boom, mobile trading, fintech disruption.

Who started the stock market in India?

The institutionalisation owes much to community of brokers and financiers in 19th-century Bombay. Notable individuals and merchant families contributed to formalising exchanges; Premchand Roychand is often noted in historical accounts for his role during the early evolution of trading practices.

How the history affects strategy and trading today

Understanding when stock market started in India and subsequent milestones helps traders interpret liquidity, regulatory constraints and product availability. For example, the rise of derivatives opened opportunities for hedging that did not exist in earlier eras. It also meant that risk management, Greeks and margin discipline became essential skills for participants.

Practical implications for students and beginner traders

Students searching for history of stock market in India often are beginners asking how to start. Historical context suggests three lessons:

• Markets evolve through technology and regulation — stay updated.
• Tools like derivatives exist for hedging — learn them before using them aggressively.
• Regulation protects investors but requires compliance — read official guidance from the regulator.

Smartly placed authoritative references

For verification and deeper reading, official exchange and regulatory pages are the best references. Use the BSE site for historical notes, the NSE site for technology-driven reforms, and SEBI for regulatory timelines and investor guidance.

Official links are placed naturally here for reader follow-up and verification: BSE, NSE and SEBI.

Internal resources and learning pathway

If you want to connect history with practical trading skills, Trading Shastra Academy offers structured programs that cover market basics through advanced options and hedging strategies. Historical lessons are integrated into live market sessions so students learn why rules exist and how to exploit structural advantages responsibly. Visit Trading Shastra Academy for program details and cohort start dates.

FAQ — direct answers to common search queries

When did the stock market start in India?

Formal market organisation began around 1875 with the Native Share & Stock Brokers’ Association in Bombay. This is widely accepted as the practical inception of structured exchanges in India.

When was the first share market in India established?

The first organised exchange activity is traced to 1875 in Bombay, evolving into the Bombay Stock Exchange — commonly cited as the first share market in India.

Who started stock market in India?

It was a community effort of merchants and brokers; prominent figures such as Premchand Roychand played a visible role in organising early broker associations that became formal exchanges.

When did the Indian stock market start accepting electronic trading?

Electronic, screen-based trading arrived with the National Stock Exchange in the early 1990s and spread to other exchanges soon after, marking a major shift from physical trading floors.

How has investor participation changed since the market started?

Investor participation grew slowly in the early decades, accelerated with indices and technology, and surged massively post-2010 with mobile brokerages, low-cost trading and easy demat onboarding.

Closing: the roadmap from past to future

The history of the Indian stock market is a narrative of incremental improvements: institutional formation, legal frameworks, technology adoption, product innovation and retail inclusion. Each phase prepared the market for the next, and each lesson from the past offers practical guidance for traders today. If your goal is to learn both history and actionable strategy, connecting timeline knowledge to live trading can shorten the learning curve.

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