Topic: BusinessCorporate Governance

Last updated: April 4, 2019

Indian stock market as has its impact not only in Asia but also in the global stage. The Bombay Stock Exchange (BSE) is one of the oldest exchanges across the globe, while the National Stock Exchange (NSE) is the best when it comes to complexity and development of technology. The Indian stock market rose after the opening up of the economy in the early nineties. The nineties were used to research and modify an efficient and effective system. The ‘badla’ system was stopped to manage unnecessary volatility and the derivatives segment started in 2000. The corporate governance rules were slowly but surely put in place which initiated the process of grouping the listed companies at a consistent level.

On the global scale, the environment of the economy started taking shift with the ‘dot com bubble burst’, 9/11, and soaring oil prices. The hold back in the US economy and interest rate reduction made the situation more complex. However after 2000 riding on a vigorous growth and a growing economy and relaxed regulations, outside investors- institutional and others got better scope to operate. This opening up of the system led to improved integration with heightened cross-border capital flow, with India budding as an investment ‘hot spot’ ensuing in our stock exchanges being impacted by global cues like never before.

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The study relates to relative analysis of the Indian Stock Market in relation to other international counterparts. Exchanges are now crossing national boundaries to widen their service areas and it has led to cross-border integration. Also, exchanges have started to offer cross-border trading to smooth the progress of overseas investment options for investors. This not only increased the demand of the exchange for investors but also attracts greater volume. Exchanges frequently ask for companies outside their home territory and persuade them to list on their exchange and global struggle has put force on corporations to look for capital outside their home country.

The Indian stock market is the world 3rd largest stock market on the criteria of investor base and has a pool of about 20 million investors. There are 9,000 companies listed on the stock exchanges of the country. The Bombay Stock Exchange, established in 1875, is the oldest in Asia. National Stock Exchange, is a more current establishment which came into existence in 1992, is the major and highly developed stock market in India is also the third biggest stock exchange in Asia when it come to transactions. It is one of the 5 biggest stock exchanges in the world when it comes to transactions volume.New York Stock Exchange (NYSE) originated on May 17, 1792, when the Buttonwood Agreement was signed by 24 stock brokers on the outside of 68 Wall Street in New York under a buttonwood tree. Also known as the “Big Board”, it is the largest stock exchange in the world when it comes to dollar volume and 2nd largest in terms of no.

of companies listed. The Tokyo stock exchange was recognized on May 15, 1878 and the trading began on June 1, 1878. In 1943, this exchange was joined with 10 other stock exchanges in main Japanese cities to shape a single Japanese Stock Exchange. It is the 2nd largest stock exchange market with respect to monetary volume and presently has 2302 listed companies. The Hong Kong stock exchange is the eight largest stock exchange in the world with respect to Market capitalization.

The Hang Sang Index (HIS), originated on November 24, 1969. The Russian stock exchange was started in 1995 by combining the separate regional stock exchanges into one uniformly regulated trading floor. The Korea stock exchange came into existence by the integration of the 3 existing of the Korean Spots and Futures exchanges (Korean stock exchange, Korean futures exchange & KOSDAQ) under the Korea Stock and Futures Exchange Act.3.5.

The names of the countries represent the indices for the purpose of analysis and they need to be interpreted that way. All the analyses have been done with the closing prices. The following table gives the country and the exchange with the name of its indices.


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