Capital Markets in India: A Conceptual Framework

Abstract

The history of the Indian capital market goes back to the 18th century when the securities of East Indian companies were traded. The contribution of the Indian capital market for the sustainability of the Indian economy is considerable since the year 1890s. The capital market plays a role in terms of wealth distribution and the economic development of a country like India. The capital market acts as a transformer of savings into capital investment. The capital market has witnessed major reforms since the implementation of New Economic Policy 1991 and after that. The Indian government and SEBI have adopted various reforms to enhance the performance of Indian stock exchanges. The present study tries to analyze the recent reforms in the Indian capital market from the year 2010 onwards. The present research is largely based on secondary data. The statistical facts and figures regarding the growth and development of the capital market were available from various journals, publications, and websites.