Indian Capital Market: Issues and Challenges

Author: Preeti Singh

Abstract:
Capital market deals with medium term and long term funds. It refers to all facilities and the institutional arrangements for borrowing and lending term funds (medium-term and long-term). The demand for long-term funds comes from private business corporations, public corporations and the Government. The supply of funds comes largely from individual and institutional investors, banks and special industrial financial institutions and Government. Modern capital markets are almost invariably hosted on computer-based electronic trading systems, most can be accessed only by entities within the financial sector, but some can be accessed directly by the public. Despite fast economic growth, India still faces massive income inequalities, high unemployment and malnutrition. India needs to follow through with deeper and more wide ranging reforms which will bring the regulatory environment and the framework of the economy to a level which can cope with the challenges of growth. The present paper aims at focusing the issues and challenges of Indian capital market in current scenario and also suggests necessary policy reforms for a relatively effective capital market.

Keywords:Equity-backed securities, SEBI, Bond market, Stock market, SIFMA

DOI:

International Journal of Trade & Commerce (Vol: 6 Issue:1)