Capital Markets 2.0: From a Banyan Tree to Billion-Dollar Trades

From open street gatherings to today's tech-driven markets handling crores in daily turnover, India's capital markets have truly come a long way. But the transformation isn't over yet. In this story, Mandar Wagh explores the next wave of evolution reshaping India's financial landscape, highlighting SEBI's progressive reforms, the rise of a strong digital backbone, and the key companies positioned to benefit from this structural shift

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Long before towering terminals and lightning-fast trading algorithms defined India's financial landscape, the heart of Indian capital markets beat under the open sky.

On a dusty stretch of road, what we now know as 'Dalal Street', indigenous brokers huddled beneath banyan trees, shouting bids and striking deals in a swirl of paper slips and hand signals. There were no screens, no structured regulations, just a chaotic but spirited bazaar of commerce.

Over the decades, this informal street-level hustle transformed into a full-fledged marketplace for wealth creation. From the founding of the Bombay Stock Exchange in 1875, the oldest in Asia, to the digital revolution that now enables same-day settlement, India's capital markets have travelled a remarkable journey. And now, something even more interesting is happening: India is no longer just a compelling domestic story, but is becoming a global magnet.

When a firm like Jane Street, known for its hyper-efficient, quantitative trading models, sets its sights on India, the implications are noteworthy. These are institutions that operate on razor-thin margins and demand seamless execution, minimal latency, and ultra-reliable post-trade systems. Their presence signals trust; not just in the markets, but in the ecosystem that supports those markets.

And this interest is not limited to Jane Street alone. Over the last few years, India has quietly become a testing ground for global trading strategies. It's no longer just about scale; it’s about sophistication, stability, and transparency. For Indian investors, both institutional and retail, this development opens up a range of new opportunities and challenges. Let’s explore this further.

SEBI’s Silent Revolution in Indian Capital Markets