The secondary markets for stocks witnessed more change and reform than most other
components of the financial sector:
• Online trading (the electronic order book) was introduced by the newly set up National
Stock Exchange in 1994 and was quickly copied by the other exchanges. The capital
market was previously confined to Mumbai (where the largest stock exchange was
located) and to a few other centres where smaller exchanges provided poorer execution
quality. Within a few years, this gave way to a national market based on satellite
communications that abolished geographical barriers. Amongst the benefits were superior
liquidity, greater transparency and lower costs.
• The settlement of securities became electronic in the late 1990s. Compulsory
dematerialisation was introduced for deliveries in the stock market for institutional
investors in 1998 and for retail investors in 1999. Today, practically all the securities© Centre for Civil Society, http://www.ccsindia.org. All Rights Reserved.
No comments:
Post a Comment