Indian Stock Markets
Indian stock markets are among the oldest in Asia, with a history dating back to almost over two hundred years ago. In those days, the East India Company was the dominant institution and the earliest records of security dealings are meager and obscure. In Delhi, two stock exchanges - Delhi Stock and Share Brokers' Association, Limited and the Delhi Stocks and Shares Exchange, Limited - were created, and in 1947, they joined forces, creating the Delhi Stock Exchange Association, Limited. The Delhi Stock Exchange Association, Ltd. Is one of the premier stock exchanges in India. Throughout Northern India, the Delhi Stock Exchange has terminals in more than fifty cities. Trading in Indian stock exchanges is really limited to listed securities of public limited companies. They are divided broadly into specified securities and non-specified securities. Two types of transactions can be carried out on the Indian stock exchange: spot delivery transactions and forward transactions. The latter is only permitted in the case of specified shares. Brokers who carry over the outstanding pay carryover charges, which are usually determined by prevailing rates of interest. In an Indian stock exchange, like the Delhi Stock Exchange, a member broker can act as an agent, buy and sell for his client on a commission basis, and can also act as a trader or dealer as a principal, buy and sell securities on his own account and risk. This is in great contrast with the practice prevailing on New York and London exchanges, where a member can act as a broker only. Some of the more notable features of the Delhi Stock Exchange are a modified "carry forward" system, a trade guarantee fund that guarantees all transactions through the exchange (in which, should a member fail to honor his settlement commitment, the Trade Guarantee Fund undertakes to fulfill that commitment and complete the settlement without any disruption), a shortened settlement cycle of specified shares, dematerialized trading, and a unified mode of settlement of trades. The nature of trading on the Delhi Stock Exchange is that of age-old, conventional style face-to-face trading, complete with bids and offers being made by open cry. There is, however, a great effort to modernize the Indian stock exchange in very recent times.