A STUDY ON CAPITAL MARKETS AND ITS INSTURMENTS IN INDIA

  • Unique Paper ID: 166865
  • Volume: 5
  • Issue: 10
  • PageNo: 524-530
  • Abstract:
  • Financial systems are of crucial signification to capital formation. That adequate capital formation is indispensable to a speedy development. The main function of financial system is the collection of savings and their distribution for industrial investment, their by stimulating the capital formation and, to that extent accelerating the process of economic growth. Financial innovation is the act of creating new financial instruments as well as new financial technologies, institutions, and markets. India’s capital market was dormant till the mid-1980s. The long term needs of the corporate sector were by and large, met by the DFIs as well as other investment institutions namely LIC and UTI. Activities in the capital market were limited mainly due to the administered structure of interest rates and easy availability of credit loans from banks and financial institution. From being a marginal institution in the mid eighties, the securities market has emerged as the most important mechanism for allocating resources in the economy through numerous changes in financial innovation. The emerging significance of the security markets is eloquently borne out by the rapid expansion in the quantum of funds raised and the number of investors.

Cite This Article

  • ISSN: 2349-6002
  • Volume: 5
  • Issue: 10
  • PageNo: 524-530

A STUDY ON CAPITAL MARKETS AND ITS INSTURMENTS IN INDIA

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