4.1 Brief History of Stock Exchange, Study of Functions of BSE & NSE Stock markets are fascinating entities and not for the least because they help investors make money! They are interesting institutions in themselves and those in India have a rich history. The Securities Contracts (Regulation) Act of 1956defines a stock exchange as “anybody of individuals, whether incorporated or not, constituted before corporatization and demutualization” or “a body corporate incorporated under the Companies Act, 1956 whether under a scheme of corporatization and demutualization or otherwise,” for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. Just to clarify, “corporatization” means the succession of a recognized stock exchange, which was a body of individuals or a society, by another stock exchange, which is an incorporated company. Meanwhile, “demutualization” means the segregation of ownership and management from the tradi...
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