The
Hyderabad Stock Exchange (HSE) was a
stock exchangeA stock exchange is an entity which provides "trading" facilities for stock brokers and traders, to trade stocks and other securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment...
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 MinisterThe 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 ministry.-External links:*...
, 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.
NizamNizam , a shortened version of Nizam-ul-Mulk , meaning Administrator of the Realm, was the title of the native sovereigns of Hyderabad State, India, since 1719, belonging to the Asaf Jah dynasty...
’s government as a company limited by guarantee. It was the 6th Stock Exchange recognized under Securities Contract Act, after the Premier Stock Exchanges,
AhmedabadAhmedabad 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...
,
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,
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,
MadrasThe 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 ExchangeBangalore 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
SecunderabadSecunderabad lies on the north of the city of Hyderabad. Both the cities are collectively known just as Hyderabad outside the state and together they form the fifth largest metropolis in India. Even, officially, the capital city of the state of Andhra Pradesh is referred to just as Hyderabad....
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 was the ninth President of India serving from 1992 to 1997. Prior to his presidency, Dr. Sharma had been the 8th Vice President of India under President Ramaswamy Venkatraman...
inaugurated the Stock exchange's own building at Himayathnagar, 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 ;
SomajigudaSomajiguda 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. Somajiguda has gained importance because of its proximity to city centres such as Begumpet, Punjagutta and...
, Hyderabad - 82, with a six storied building and a constructed area of about (including cellar of ).
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
croreA crore is a unit in the Indian numbering system equal to ten million , or 100 lakh. It is widely used in Bangladesh, India, Nepal, and Pakistan...
s 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.
Derecognition of Stock Exchange
Securities and Exchange Board of IndiaSEBI is the regulator for the securities market in India. 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"