A STUDY ON CAPITAL MARKET REFORMS IN INDIA

Abstract

The Indian financial system's capital market is among its most crucial components. Companies can meet their needs for long-term funding on this market, which is open to them. It refers to all institutional arrangements and borrowing and lending facilities. In other words, it has to do with obtaining funds in order to make long-term investments. The supply and demand for long-term capital and claims on it are channelled through the market, which is made up of numerous people and institutions (including the government). Manufacturing businesses in the private sector, the agricultural sector, commerce, and government agencies are the main consumers of long-term capital. While the majority of the money used to finance the capital market is saved by individuals and businesses, as well as by banks, insurance companies, specialized financing firms, and governments. The Indian financial market has matured during the past ten years. Since 1991, India's governments have made significant efforts to restructure the nation's financial system. Due to ongoing reforms, India's financial industry has grown in terms of institutions, markets, and infrastructure, adding to its depth and vibrancy. The present study deals in the developments in the capital market.