In general, the financial market divided into two parts, Money market and capital market.

Securities market is an important, organized capital market where transaction of capital is facilitated by means of direct financing using securities as a commodity. Securities market can be divided into a primary market and secondary market. primary market is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. The secondary market is an on-going market, which is equipped and organized with a place, facilities and other resources required for trading securities after their initial offering. It refers to a specific place where securities transaction among many and unspecified persons is carried out through intermediation of the securities firms, i.e., a licensed broker, and the exchanges, a specialized trading organization, in accordance with the rules and regulations established by the exchanges. The origin of the stock market in India goes back to the end of the eighteenth century when longterm negotiable securities were first issued. However, for all practical purposes, the real beginning occurred in the middle of the nineteenth century after the enactment of the companies Act in 1850, which introduced the features of limited liability and generated investor interest in corporate securities. An important early event in the development of the stock market in India was the formation of the native share and stock brokers 'Association at Bombay in 1875, the precursor of the present day Bombay Stock Exchange. This was followed by the formation of associations/exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently. Stock exchanges are intricacy inter-woven in the fabric of a nation's economic life. Without a stock exchange, the saving of the community- the sinews of economic progress and productive efficiencywould remain underutilized. The task of mobilization and allocation of savings could be attempted in the old days by a much less specialized institution than the stock exchanges. But as business and industry expanded and the economy assumed more complex nature, the need for 'permanent finance' arose. Entrepreneurs needed money for long term whereas investors demanded liquidity the facility to convert their investment into cash at any given time. The answer was a ready market for investments and this was how the stock exchange came into being. The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock Exchanges. However, the BSE and NSE have established themselves as the two leading exchanges and account for about 80 per cent of the equity volume traded in India.

Bombay Stock Exchange is the oldest stock exchange in Asia What is now popularly known as the BSE was established as "The Native Share & Stock Brokers' Association" in 1875. In the year 1850, stock brokers would gather under banyan trees in front of Mumbais Town Hall. As the number of brokers kept increasing this location kept changing and finally they moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. BSE is the first stock exchange in the country which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. .
The organization introduced BSE Sensex in the year 1986, facilitating to compute the general performance of the exchange. In 2000, BSE employed this alphabetical listing to make a foray into its derivatives market and buying and selling of Sensex futures agreements. The expansion of Sensex alternative besides equity derivatives trailed in the years 2001 and 2002.

Profile of BSE In the history of 135 years, Bombay Stock Exchange has assisted the expansion of Indian corporate industry by offering it with adequate fund raising platform from both national and international market. At present, BSE is top most stock exchanges in the world in context of the number of firms cataloged under it. In context of number of business deals managed via its hi-tech trading set-up, BSE is the 5th most active in the globe. As per WFE 2009 Market Highlights, BSE is among the 10 major international exchanges in context of market investment of the firms registered under it. The total amount of investment dominated by the cataloged firms under BSE as on 31st March, 2010 was USD 1.36 Trillion.

Landmarks Achieved by BSE Some of the landmarks achieved by the BSE are mentioned as under:

The stock exchange procured Marketplace Technologies in the year 2009 to augment its domestic machinery expansion competence and to permit greater duration to trade for latest products. It introduced a treatment display place for company bonds recognized as Indian Corporate Debt Market(ICDM) BSE procured 15% venture in United Stock Exchange (USE) to trigger the expansion of the exchange and interest rate derivatives It introduced BSE Star Mutual Fund buying and selling platform to allow its associates to make use of the prevailing infrastructure for business deals in the sectoral plans. The stock exchange even provides a AMFI Authorization for Mutual Fund Consultants via BSE Training Institute (BTI)

BSE Indices In an attempt to offer an enhanced demonstration of the expanding number of registered firms, bigger investments and new corporates, BSE introduced DOLLEX-200 and BSE-200 on 27th May, 1994. In the process it has achieved a lot in standardizing itself to the diverse requirements of the shareholders and market players. In an attempt to satisfy the requirement of more extensive and industry specific indices, BSE has incessantly been triggering the assortment of its indices. Other indices launched which followed are; BSE-500 in 1999, BSEPSU and BSE TECk in 2001. Later the unit altered all its indices to free-float technique. BSE broadcasts data on the Value-Yielding Ratio, the Cost to Book Value Ratio and the Dividend Return Ratio on the basis of daily index transactions. The worth of all BSE indices is upgraded on statistical basis during transaction hours and is exhibited via its website, news cable intermediaries and BOLT set-up.

The indices are analyzed sporadically by the BSE Index Committee which comprises renowned autonomous finance experts who draw the comprehensive policy rules for the expansion and sustenance of the indices.

National Stock Exchange of India

The National Stock Exchange (NSE India) is the worlds third largest stock exchange in terms of transaction volumes. NSE India is based out of Mumbai. NSE is the largest stock exchange in India in terms of daily turnover and number of trades, for both equities and derivative trading. National Stock Exchange (NSE India) was promoted by leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities eliminating any conflict of interest. National Stock Exchange (NSE India) was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the India. NSE India commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in FNO segment commenced in June 2000. NSE India pioneered commencement of Internet Trading in February 2000, which led to the wide popularization of the National Stock Exchange (NSE India) in the broker community. The year 2008 saw introduction of Stock and Currency derivatives by the NSE India. Interest Rate Futures was introduced for the first time in India by National Stock Exchange (NSE India) on 31st August 2009, exactly after one year of the launch of Currency Futures : Equity Futures and Options Retail Debt Market Wholesale Debt Market Currency futures