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VSRD-IJBMR, Vol. 2 (7), 2012, 387-399
RESEARCH COMMUNICATION RESEARCH COMMUNICATION
Indian Capital Market : An Overview with Its Growth
1
Juhi Ahuja*
ABSTRACT
This paper presents a review of Indian Capital Market & its structure. In last decade or so, it has been observed that there has been a paradigm shift in Indian capital market. The application of many reforms & developments in Indian capital market has made the Indian capital market comparable with the international capital markets. Now, the market features a developed regulatory mechanism and a modern market infrastructure with growing market capitalization, market liquidity, and mobilization of resources. The emergence of Private Corporate Debt market is also a good innovation replacing the banking mode of corporate finance. However, the market has witnessed its worst time with the recent global financial crisis that originated from the US sub-prime mortgage market and spread over to the entire world as a contagion. The capital market of India delivered a sluggish performance. Keywords : Indian Capital Market; Developments; Regulatory mechanism; Private Corporate Debt Market.
1. INTRODUCTION
Capital Market : A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Two types of Markets : Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange,
VSRD-IJBMR, Vol. 2 (7), 2012, 387-399
RESEARCH COMMUNICATION RESEARCH COMMUNICATION
Indian Capital Market : An Overview with Its Growth
1
Juhi Ahuja*
ABSTRACT
This paper presents a review of Indian Capital Market & its structure. In last decade or so, it has been observed that there has been a paradigm shift in Indian capital market. The application of many reforms & developments in Indian capital market has made the Indian capital market comparable with the international capital markets. Now, the market features a developed regulatory mechanism and a modern market infrastructure with growing market capitalization, market liquidity, and mobilization of resources. The emergence of Private Corporate Debt market is also a good innovation replacing the banking mode of corporate finance. However, the market has witnessed its worst time with the recent global financial crisis that originated from the US sub-prime mortgage market and spread over to the entire world as a contagion. The capital market of India delivered a sluggish performance. Keywords : Indian Capital Market; Developments; Regulatory mechanism; Private Corporate Debt Market.
1. INTRODUCTION
Capital Market : A capital market is a market for securities (debt or equity), where business enterprises (companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Two types of Markets : Capital markets may be classified as primary markets and secondary markets. In primary markets, new stock or bond issues are sold to investors via a mechanism known as underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange,
References: [1] Stock Exchange Official Directory, Vol.2 (9) (iii), Bombay Stock Exchange, Bombay [2] http://business.mapsofindia.com/india-market/debt.html [3] Bank for International Settlements, 2006 [4] RBI; National Stock Exchange of India Limited [5] http://www.equitymaster.com [6] http://www.businessdictionary.com/definition/stock-exchange.html [7] http://www.yeahindia.com/c-india1.htm [8] http://en.wikipedia.org/wiki/Capital_market [9] http://kalyan-city.blogspot.com/2010/09/reforms-developments-in-indian-capital.html [10] http://www.pwc.com/in/en/publications/india-captial-market-11-feb.jhtml [11] http://business.gov.in/business_financing/capital_market.php [12] http://www.economywatch.com/market/capital-market/indian.html 399