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India at 75: 20 milestones for Indian markets between 1995 and 2002

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1. March 14, 1995: The On-Line Trading (BOLT) system is launched because the begins to lose market share to the within the institutional and retail segments. It units the tempo for algorithm or computer-based buying and selling, now a norm however revolutionary in these days. It ends the century-old open-cry methodology of worth bids within the fairness market, making the method of promoting and shopping for shares quicker and extra clear.


2. April 1995: India’s first Clearing Corporation, NSCCL (an entirely owned subsidiary of the NSE), is established. It shortens the settlement cycle and ensures that securities are delivered to patrons earlier than the due date. This additional enhances investor confidence in fairness as a viable asset class in India.


3. July 1995: The is established with the target of compensating buyers within the occasion of defaulters’ property not being adequate to satisfy the admitted claims of buyers, and to advertise investor schooling, consciousness and analysis.

Also learn: India at 75: 18 biggest moments for Indian markets from 1947 to 1993


4. October 1995: The turns into India’s largest . The buying and selling volumes on it surpasses that on the BSE, demonstrating the success of electronic-based buying and selling. It pushes the to corporatise itself and undertake fashionable buying and selling practices.


5. April 22, 1996: The Nifty50 index is launched. In the following few years, it might change into essentially the most tracked and traced index in India. Its reputation results in the launch of exchange-traded fund (ETF), setting the stage for the ETF business.


6. November 1996: The first depository of India, National Securities Depository Limited (NSDL), co-promoted by the NSE, is about up. kick-starts the method of digitisation of share certificates and different securities, eliminating one other layer of complexity in possession and sale of shares. It additionally lowers the price of fairness possession.


7. 1997: The BSE’s BOLT system is expanded nationwide. This turns the BSE right into a nationwide on the strains of the NSE, additional boosting the tradition of on-line share buying and selling and investing.


8. October 11, 1999: The crosses the 5,000 mark for the primary time, primarily on the again of the Bharatiya Janata Party (BJP)-led coalition profitable a majority within the thirteenth Lok Sabha elections. This is the start of the dotcom increase out there, which might finish in a 2000 crash.

Read extra: India at 75: 16 events that impacted Indian markets between 2003 and 2014


9. February 2000: Internet Trading on the commences. This is the following step for the NSE digital buying and selling platform. This allows buyers to commerce and make investments with out having to go to a dealer’s workplace/or name a dealer as a way to purchase or promote shares.


10. March 2000: After a robust run of over 18 months, the Nasdaq peaks in March at over 5,000 stage. Over the following 30-odd months, it might fall to round 1,100. Popularly referred to as the 2000 dot-com market collapse, it’s triggered by world know-how (web economic system) shares and has a big affect on the Indian inventory market.


BSE


BSE


11. June 9, 2000: The BSE introduces Equity Derivatives. Trading in derivatives had almost vanished on the BSE after the Sebi ban on badla buying and selling. This is one other try by the BSE to get a slice of the fast-growing, NSE-dominated derivatives buying and selling market.


12. 2000: The Dividend restrictions Act is repealed. Companies are actually free to distribute as a lot of their earnings to shareholders by the use of dividend as they need. This units the stage for a dividend increase in later years, with many cash-rich firms distributing almost 90 per cent of their annual earnings as dividend to buyers.

Also learn: India at 75: 12 landmarks for Indian markets between 2015 and 2020


13. March 1, 2001: The Union authorities proposes corporatisation of exchanges. The March 1, 2001, choice to organise into firms is supposed to make sure a separation of possession, administration and buying and selling rights. The new construction addresses the conflict-of-interest concern and additionally allows them to lift bigger quantities of cash wanted for essential actions like modernisation and improve.


14. March 2001: The Ketan Parekh rip-off, the most important after the Harshad Mehta rip-off, is unearthed. Mumbai-based inventory dealer Ketan Parekh is accused of rigging costs of sure securities, also called Okay-10, between 1998 and 2001 utilizing funds borrowed from banks. He can also be accused of insider buying and selling and teaming up with firm administrators to inflate inventory costs. Sebi bans him and his affiliate firms from buying and selling in shares for 14 years.


15. April-May 2001: There is a big redemption in Unit Scheme-1964 (US-64) – Unit Trust of India’s largest and hottest scheme. The inventory market correction within the aftermath of the Ketan Parekh rip-off results in redemption strain on Unit Scheme 64 and an enormous shortfall between what UTI owes shareholders and the mark-to-market worth of the portfolio. There is panic when UTI locations all redemptions on maintain for six months and finally needs to be bailed out by the federal government.


16. July 9, 2001: Stock choices are launched on the BSE. This permits buyers to purchase or promote shares at a selected worth inside a selected date. The launch is the results of studies from two committees headed by L C Gupta and J R Varma, which laid the bottom for regulatory framework for derivatives market in India.


17. September 9, 2001: A terror assault on the World Trade Center (WTC) within the US triggers a pointy fall in (*20*) internationally, and India is not any exception. Ten days after the assault, the worldwide market meltdown results in a pointy correction within the Indian markets. The falls 17.24 per cent on September 21, 2001, earlier than recovering in about 5 months to the touch a brand new excessive.

Also learn: India at 75: 9 most important events for Indian market since 2021


18. November 1, 2001: Stock futures are launched on the BSE. After the J R Varma Committee urged a technique for threat containment measures associated to derivatives buying and selling, Sebi approves its launch. This is adopted by the BSE introducing derivatives buying and selling within the nation in November 2001.


19. December 31, 2001: All securities flip to T+5 (buying and selling plus 5 days) settlement cycle. The T+5 system signifies that purchases or gross sales are to be settled 5 working days later. In the weekly settlement system, the web place of the dealer was settled by the clearing company at the top of the week, whereas within the rolling settlement system every commerce is to be settled individually after 5 working days.


20. January 2002: ETFs are launched on the NSE. ETFs are a basket of securities which might be traded on an alternate and have decrease transaction value. It begins on January 8, 2002, when the primary ETF by Nippon India Mutual fund or the erstwhile Benchmark Asset Management Company is launched in India on the Nifty50 index.



Contributed by Samie Modak, Krishna Kant, Ram Prasad Sahu and Sundar Sethuraman




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