Indian Capital Market & It’s Development in Financial Market Reforms

Abstract The purpose of this paper is to provide depth information on the Indian Capital Market. Various factors contributing to the growth of the capital market in India and the various products available in the market to the market participants including the FII’S and providing knowledge of the functioning of the capital market. The objective of this study is to show the present status of Indian Capital Market and how it is gaining world wide acceptance. In the age of stiff competition gaining its momentum to the world financial markets in the race of highly regulated markets around the globe. In last decade or so, it has been observed that there has been a paradigm shift in Indian capital market. The applications of technology in the payment and settlement systems have 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 mobilisation of resources. 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. In this context, it is imperative to conduct empirical analysis to study the performance of Indian capital market. It is with this backdrop, this paper is an attempt to analyze the key market parameters such as market size, market liquidity, market turnover ratio, market volatility, and market efficiency of Indian capital market Key Words : Capital, SEBI, Capital Market, Market Reform