1992, India's Original Fintech Moment

IN CHALLENGING the prevailing notion, one should acknowledge that the genesis of startups, particularly within the technology domain, transcends contemporary narratives and traces its roots back many decades. While the term “startup” may commonly evoke images synonymous with Silicon Valley or Bengaluru and the current digital era, it is essential to recognise that entrepreneurial enterprises have been integral to human ingenuity throughout successive eras.

- Srinath Sridharan

From the industrial revolution to the dot-com era, the underpinning entrepreneurial ethos has consistently propelled advancements. This reorientation of perspective invites a nuanced exploration of the expansive history of startups, refuting the misconception that startup ventures, especially in technology, represent a recent phenomenon. Instead, they embody a dynamic and enduring force shaping the perpetual evolution of corporate landscapes and societal progress.

If you think that fintech in India started just few years ago, think again. For most of GenZ readers, it was actually before your birth! Today we know of stock market investments as easy as a few clicks on our phone.

The inception of the National Stock Exchange (NSE) in 1992, marked a watershed moment in the nation’s financial services sector. It was the first fintech moment in Indian financial services. This groundbreaking endeavour, driven by the visionary leadership of the then-newly formed Securities and Exchange Board of India (SEBI), heralded the advent of fintech in the world of finance. The NSE’s mission was clear: to dismantle the archaic, paper-based system that had long plagued the Indian stock markets and replace it with a transparent and technology-driven alternative.

At the time, the Bombay Stock Exchange (BSE) had been the epicentre of stock trading in India, but it was entangled in a web of nepotism and opacity, largely controlled by old wealth cartels. It had seen the stock market scam, which was essentially a banking scam. Harshad Mehta and others manipulated the banking system, while the narrative makes it to be a securities market issue.