| SMART JOURNAL OF BUSINESS MANAGEMENT STUDIES |
VOL. 1 |
NO. 1 |
PAPER 6 |
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INDIAN CAPITAL MARKET: A RETROSPECT AND ITS PROSPECTS |
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| R.Thamilselvam, S.Rajkumar, S.Swaminathan,* and S.Sekar** |
| * Department of Commerce, P.R.College, Thanjavur, India |
| ** Department of Commerce, U.D.College, Tiruchirappalli,India |
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| Indian Capital Market, after liberalization, has been experiencing
metamorphic changes for the last one decade. The competition has become
very intense and real, thus affecting the industrial sector and
financial services industry. As a result of this, in the area of Capital
Market, companies accessing Capital Markets have introduced more and
more new financial instruments. Capital Market Operations consist mainly
of primary market operations and secondary market operations. When
liberalization measures were started in 1992, Government realized that
corporate sector would require large amounts of funds. which could not
be mobilized from domestic markets alone. Hence Indian companies were
permitted to raise funds from global market through the issue of Global
Depository Receipts or American Depository Receipts. The Nineties had
been a period of vast reforms in India’s stock market. Innovative
initiatives like screen based trading and establishment of National
Stock Exchange (NSE) took place in the first half of this decade. An
attempt made in this paper discusses the recent developments of Indian
Capital Market. The recent development in the capital market includes:
Depository Services, Compulsory Rolling Settlement, Screen Based Trading
and Derivatives Trading |
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