The history of Borsa: the 1970s and the 1980s (1975-1991)
Market Support Interventions
Between the second half of the 1970s and the early 1980s, measures were taken to offset the unfavourable economic climate in Italy and abroad.
In 1977, the index reached its post-war historical low. To revitalise trading, a tax credit system was adopted which put an end to the double taxation of income and in the same year, the Restricted Stock Market was officially set up to widen the range of tradable securities.
In 1983, Law 169 introduced new tax incentives (tax exemption on capital gains made on transfers) aimed at encouraging financial investment.
After over ten years of indecision and paralysis, in 1985 another change was introduced by Law 281 of 4 June which strengthened CONSOB's role in regulating the securities market by granting the commission the status of "public law body" and complete autonomy from the government as an independent regulator.
During the second half of the 1970s, the Milan marketplace took on greater visibility within international stock exchange organisations. The President of the Executive Committee was invited to direct the FIBV (International Federation of Stock Exchanges), an organisation that united the main stock exchanges from around the world. The Milan Committe also promoted the creation of the Federation of European Securities Exchanges (FESE), which responds specifically to the needs and issues posed by the European markets.
The Boom in Mutual Investment Funds
A consistent recovery in the market began to be felt in 1983 when the first mutual investment funds under Italian law were created.
Mutual investment funds under Luxemburg law had already been in existence since the mid-1960s, but the creation of Italian funds had a doubly beneficial effect on the stock market. In the first place, the funds gave rise to massive purchases of securities to form portfolios, with positive effects on the listings. Secondly, the availability of these new investment instruments reached a much wider pool of investors than those who operated directly on the stock market.