Hyderabad Stock Exchange
Encyclopedia
The Hyderabad Stock Exchange (HSE) was a stock exchange
established in 1941 located in Hyderabad, India. The exchange was disbanded in 2007.
, formed a committee for the purpose of constituting rules and regulations of the Stock Exchange. Sri Purushothamdas Thakurdas, president and founding member of the Hyderabad Stock Exchange performed the opening ceremony of the exchange on November 14, 1943 under Hyderabad Companies Act. Mr. Kamal Yar Jung Bahadur was the first president of the exchange. The HSE started functioning under Hyderabad Securities Contract Act of No. 21 of 1352 under H.E.H. Nizam
’s government as a company limited by guarantee. It was the 6th Stock Exchange recognized under Securities Contract Act, after the Premier Stock Exchanges, Ahmedabad
, Bombay
, Calcutta
, Madras
, and Bangalore Stock Exchange
. All deliveries were completed every Monday or the next working day.
The HSE was first recognized by the Government of India on 29 September, 1958 as Securities Regulation Act was made applicable to twin cities of Hyderabad and Secunderabad
from that date. In view of substantial growth in trading activities, and for the yeoman services rendered by the exchange, the exchange was bestowed with permanent recognition with effect from 29 September, 1983.
inaugurated the Stock Exchange's own building at Himayatnagar, Hyderabad
. Later, in order to bring all the trading members under one roof, the exchange acquired still larger premises situated at 6-3-654/A ; Somajiguda
, Hyderabad - 82, with a six storied building and a constructed area of about 486842 square feet (45,229.1 m²) (including cellar of 70857 square feet (6,582.8 m²)).
(SEBI) had notified The Hyderabad Stock Exchange Ltd. (Corporatisation and Demutualisation) Scheme, 2005 on August 29, 2005. The Hyderabad Stock Exchange Ltd. has failed to dilute 51% of its equity share capital to the public other than shareholders having trading rights on or before August 28, 2007. Consequently, in terms of section 5(2) of the Securities Contracts Regulation Act, 1956 (SCRA), the recognition granted to HSE was withdrawn with effect from August 29, 2007. After derecognization by SEBI, the company name has been changed to "Hyderabad Securities and Enterprises Ltd"
The number of members of the Exchange was 55 in 1943, 117 in 1993 and increased to 300 with 869 listed companies having paid up capital of Rs.19128.95 crores as of March 31, 2000. The business turnover also substantially increased to Rs. 1236.51 crores in 1999-2000. The Exchange had a very smooth settlement system.
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
established in 1941 located in Hyderabad, India. The exchange was disbanded in 2007.
History
In November 1941, some leading bankers and brokers formed the share and stock Brokers Association. In 1942, Mr. Gulab Mohammed, the Finance MinisterFinance Minister of India
The Minister of Finance, also known as the Finance Minister of India is a cabinet position in the Government of India and heads the Ministry of Finance. He drafts the general budget of the country, and is in charge of the national economy. Currently, Pranab Mukherjee holds the charge of finance...
, formed a committee for the purpose of constituting rules and regulations of the Stock Exchange. Sri Purushothamdas Thakurdas, president and founding member of the Hyderabad Stock Exchange performed the opening ceremony of the exchange on November 14, 1943 under Hyderabad Companies Act. Mr. Kamal Yar Jung Bahadur was the first president of the exchange. The HSE started functioning under Hyderabad Securities Contract Act of No. 21 of 1352 under H.E.H. Nizam
Nizam
Nizam-ul-Mulk of Hyderabad popularly known as Nizams of Hyderabad was a former monarchy of the Hyderabad State, now in the states of Andhra Pradesh , Karnataka , and Maharashtra in India...
’s government as a company limited by guarantee. It was the 6th Stock Exchange recognized under Securities Contract Act, after the Premier Stock Exchanges, Ahmedabad
Ahmedabad Stock Exchange
Ahmedabad Stock Exchange or ASE is the second oldest exchange of India located in the city of Ahmedabad in the western part of the country. It is recognized by Securities Contract Act, 1956 as permanent stock exchange...
, Bombay
Bombay Stock Exchange
The Bombay Stock Exchange is a stock exchange located on Dalal Street, Mumbai and is the oldest stock exchange in Asia. The equity market capitalization of the companies listed on the BSE was 1.63 trillion as of December 2010, making it the 4th largest stock exchange in Asia and the 8th largest...
, Calcutta
Calcutta Stock Exchange Association Limited
Calcutta Stock Exchange located at the Lyons Range, Kolkata, India, was incorporated in 1908 and is the second largest bourse in India.-History:...
, Madras
Madras Stock Exchange
The Madras Stock Exchange is a stock exchange in Madras, , India. The Madras Stock Exchange is the fourth Stock Exchange to be established in the country, and the first in South India...
, and Bangalore Stock Exchange
Bangalore Stock Exchange
Bangalore Stock Exchange is a public stock exchange based in Bangalore, India. It was founded in 1963 and currently has 595 regional and non-regional companies listed. In September 2005, the BgSE announced plans to go public by divesting at least 51% of its ownership...
. All deliveries were completed every Monday or the next working day.
The HSE was first recognized by the Government of India on 29 September, 1958 as Securities Regulation Act was made applicable to twin cities of Hyderabad and Secunderabad
Secunderabad
Secunderabad popularly known as the twin city of Hyderabad is located in the Indian state of Andhra Pradesh north of Hyderabad. Named after Sikandar Jah, the third Nizam of the Asaf Jahi dynasty, Secunderabad was founded in 1806 AD as a British cantonment...
from that date. In view of substantial growth in trading activities, and for the yeoman services rendered by the exchange, the exchange was bestowed with permanent recognition with effect from 29 September, 1983.
Operations
The Hyderabad Stock Exchange Ltd. started its operations in a small way in a rented building in the Koti, Hyderabad area. It moved to Aiyangar Plaza, Bank Street in 1987. In September 1989, the then Vice-President of India, Shankar Dayal SharmaShankar Dayal Sharma
Shankar Dayal Sharma was the ninth President of India serving from 1992 to 1997. Prior to his presidency, Dr Sharma had been the eighth Vice President of India, serving under President Ramaswamy Venkataraman...
inaugurated the Stock Exchange's own building at Himayatnagar, Hyderabad
Himayatnagar, Hyderabad
Himayatnagar is a densely populated part of the southern Indian city of Hyderabad. Himayatnagar developed into the residential and commercial frontier of the city around the mid 1960s. It adjoins the suburbs of Narayanguda, Basheerbagh and Hyderguda. A noted center, Urdu Hall is located here....
. Later, in order to bring all the trading members under one roof, the exchange acquired still larger premises situated at 6-3-654/A ; Somajiguda
Somajiguda
Somajiguda started as a peaceful residential locality. But slowly has transformed into a modern business centre in Hyderabad, India. Popular landmarks are Yashoda hospital and Raj Bhavan road...
, Hyderabad - 82, with a six storied building and a constructed area of about 486842 square feet (45,229.1 m²) (including cellar of 70857 square feet (6,582.8 m²)).
Derecognition of Stock Exchange
Securities and Exchange Board of IndiaSecurities and Exchange Board of India
The Securities and Exchange Board of India is the regulator for the securities market in India.-History:It was formed officially by the Government of India in 1992 with SEBI Act 1992 being passed by the Indian Parliament...
(SEBI) had notified The Hyderabad Stock Exchange Ltd. (Corporatisation and Demutualisation) Scheme, 2005 on August 29, 2005. The Hyderabad Stock Exchange Ltd. has failed to dilute 51% of its equity share capital to the public other than shareholders having trading rights on or before August 28, 2007. Consequently, in terms of section 5(2) of the Securities Contracts Regulation Act, 1956 (SCRA), the recognition granted to HSE was withdrawn with effect from August 29, 2007. After derecognization by SEBI, the company name has been changed to "Hyderabad Securities and Enterprises Ltd"
The number of members of the Exchange was 55 in 1943, 117 in 1993 and increased to 300 with 869 listed companies having paid up capital of Rs.19128.95 crores as of March 31, 2000. The business turnover also substantially increased to Rs. 1236.51 crores in 1999-2000. The Exchange had a very smooth settlement system.