In 1942, Mr. Gulab Mohammed, the Finance Minister, formed a committee for the purpose of constituting rules and regulations of the Stock Exchange.
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 September 1989, the then Vice-President of India, Shankar Dayal Sharma inaugurated the Stock Exchange's own building at Himayatnagar, Hyderabad.
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 28 August 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in terms of section 5(2) of the Securities Contracts Regulation Act, 1956 (SCRA), the recognition granted to HSE was withdrawn with effect from 29 August 2007.