The beginning of the seventh century B.C. was a significant time in Ancient Indian history.

Two
significant faiths, Buddhism and Jainism, were created around this period.1

Both religions attracted followers in India. They also affected commerce greatly

Elements that would have led to an increase in commerce, EXPANSION OF ECONOMY as

well as escalate the necessity for joint efforts and organizational structures are:

1. No emphasis on caste division: Both faiths did not emphasize caste divisions, allowing
for better interchange across social groupings, which aided in the expansion of
commerce, invention, and manufacturing.
2. Transactions were made simple: Furthermore, there was extensive urbanization (as in
the Indus region) and the use of coins as payment was widespread, making transactions
simpler.
3. Use of Iron: Furthermore, increasing usage of iron at this period would have aided in the
development of agricultural implements (e.g., iron ploughs, axes), crafts, and
transportation and storage.

All of the fundamentals for the corporate entity were then in place. Indeed, there are several
written documents attesting to the presence and significance of the sreni at this point in Indian
history. According to these sources, the sreni were numerous, worked in a variety of fields, and
were nomadic from one location to another. The sreni were evidently influential in society since
they were frequently invited to official state gatherings. By this time, they were also actively
engaged in commerce, manufacturing (crafts), and primitive financial services.

Their significance is emphasised further by the fact that the Bhandagarika (an arbiter for inter-
sreni conflicts) became a government official during this period.2

However, aside from allusions to the sreni's role in society, we only have a few nuggets of
information about how it was organized and managed.

 Membership: sreni had headmen and that sreni might have a considerable number of
members. Although headmen are named, executive officials are not, which is odd
considering that some sreni were fairly substantial.
1
Roughly in the 6th Century B.C Siddhartha Gautama, who later became Buddha, and Mahavira, founder of the Jain faith, was born. See
THAPLYAL, supra note 18, at 24 – 27.
2
JATAKA IV, supra note 63, at 37.
  Dharmas and laws3: Historians also have allusions to the sreni setting down their sreni
dharma and law texts recommending that the monarch obey these regulations. This shows
that by this point, individuals had spent some time contemplating the governance of the
sreni.

This is to be expected given the sreni's growing prominence and size. However, there are no
allusions to what was contained in the sreni dharma of the period. This makes evaluating the
operation of these companies more challenging.

Nonetheless, we can claim with certainty that by this point, the sreni had increased in number
and prominence, played an important role in society, and that the writers of the period were
aware of the concept of governance in these groups.

3
GAUTAMA DHARMASUTRA XI, supra note 85, at 23