Question

Discuss about evolution and growth of Indian Capital Market.

Answer 1

1. The period between 1947 and 1973 marked the development of infrastructure for the capital market.
2. During this period Financial institutions such as IFCI, ICICI, IDBI, and UTI, SFCs, and SIDCs were established.
3. These institutions strengthened the capital market.
4. During the period between 1980 and 1992, debenture emerged as a powerful instrument of resource mobilization in the primary market.
5. A number of Stock Exchanges came into existence.
6.  There was tremendous growth in the secondary market.
7. SEBI emerged as an effective regulatory body for the primary and secondary markets and give a measure of protection to small investors.
8.  New financial services such as credit rating were introduced.