9 Juhi Ahuja 812 Research Communication

Available ONLINE www.vsrdjournals.com

VSRD-IJBMR, Vol. 2 (7), 2012, 387-399

R R E ES SE EA AR R C CH H C CO OM MM MU UN NIIC CA AT TIIO ON N

Indian Capital Market : An Overview with Its Growth 1

Juhi Ahuja*

ABSTRACT This paper presents a review of Indian Capital Market & its structure. In last decade or so, it has been observed that there has been a paradigm shift in Indian capital market. The application of many reforms & developments in Indian capital market has made the Indian capital market comparable with the international capital markets. Now, the market features a developed regulatory mechanism mechanism and a modern market infrastructure with growing market capitalization, market liquidity, and mobilization of resources. The emergence of Private Corporate Debt market is also a good innovation replacing the banking mode of corporate finance. 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. Keywords : Indian : Indian Capital Capital Market; Market; Developments; Developments; Regulatory Regulatory mechanism; mechanism; Private Private Corporate Corporate Debt Market. Market.

1. INTRODUCTION Capital Market : A capital market is a market for securities (debt or equity), where business enterprises

(companies) and governments can raise long-term funds. It is defined as a market in which money is provided for periods longer than a year, as the raising of short-term funds takes place on other markets (e.g., the money market). The capital market includes the stock market (equity securities) and the bond market (debt). Two types of Markets : Capital markets may be classified as primary markets and secondary markets. In

primary markets, markets, new stock or bond issues are sold to investors investors via a mechanism mechanism known as underwriting. underwriting. In the secondary markets, existing securities are sold and bought among investors or traders, usually on a securities exchange, over-the-counter, or elsewhere. ____________________________ ________________________ ____ 1

Assistant Professor, MBA Department, *Correspondence : [email protected]

Shri

Balwant

Institute

of

Technology,

Sonepat,

Haryana,

INDIA.

Juhi Ahuja / VSRD International Journal of Business & Management Research Vol. 2 (7), 2012

INDIAN Capital Market

Evolution : Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago.

The Bombay Stock Exchange was inaugurated in 1899 when the brokers formally established a stock market in India. Thus, the Stock Exchange at Bombay was consolidated. After that more & more stock exchanges have emerged in India & this forms a huge capital market in India.

2. EQUITY MARKET IN INDIA The Indian Equity Market is more popularly known as the Indian Stock Market. The Indian equity market has become the third biggest after China and Hong Kong in the Asian region. According to the latest report by ADB, it has a market capitalization of nearly $600 billion. As of March 2009, the market capitalization was around $598.3 billion (Rs 30.13 lakh crore) which is one-tenth of the combined valuation of the Asia region. The market was slow since early 2007 and continued till the first quarter of 2009. Stock Exchange : Stock Exchange is an Organized and regulated financial market where securities (bonds,

notes, shares) are bought and sold at prices governed by the forces of demand and supply. The Role of Stock Exchanges : Stock exchanges have multiple roles in the economy. This may include the

following : Raising Capital For Businesses : The Stock Exchange provide companies with the facility to raise capital for

expansion through selling shares to the investing public. Facilitating Company Growth : A takeover bid or a merger agreement through the stock market is one of the

simplest and most common ways for a company to grow by acquisition or fusion. Creating Investment Opportunities For Small Investors : As opposed to other businesses that require huge

capital outlay, investing in shares is open to both the large and small stock investors because a person buys the number of shares they can afford. Therefore the Stock Exchange provides the opportunity for small investors to own shares of the same companies as large investors. Barometer of the Economy : At the stock exchange, share prices rise and fall depending, largely, on market

forces. Share prices tend to rise or remain stable when companies and the economy in general show signs of stability and growth. An economic recession, depression, or financial crisis could eventually lead to a stock market crash. Therefore the movement of share prices and in general of the stock indexes can be an indicator of the general trend in the economy. Speculation : The stock exchanges are also fashionable places for speculation. In a financial context, the terms

"speculation" and "investment" are actually quite specific. For instance, although the word "investment" is typically used, in a general sense, to mean any act of placing money in a financial vehicle with the intent of producing returns over a period of time, most ventured money—including funds placed in the world's stock markets—is actually not investment but speculation.

388


The Indian market has 22 stock exchanges. The larger companies are enlisted with BSE and NSE. The smaller and medium companies are listed with OTCEI (Over The counter Exchange of India). Bombay Stock Exchange (BSE) : BSE is the oldest stock exchange in Asia. The extensiveness of the

indigenous equity broking industry in India led to the formation of the Native Share Brokers Association in 1875, which later became Bombay Stock Exchange Limited (BSE). BSE is widely recognized due to its pivotal and pre-eminent role in the development of the Indian capital market. In 1995, the trading system transformed from open outcry system to an online screen-based order-driven trading system. 

The exchange opened up for foreign ownership (foreign institutional investment).



Allowed Indian companies to raise capital from abroad through ADRs and GDRs.



Expanded the product range (equities/derivatives/debt).



Introduced the book building process and brought in transparency in IPO issuance.



Depositories for share custody (dematerialization of shares).



Internet trading (e-broking).

BSE has a nation-wide reach with a presence in more than 450 cities and towns of India. BSE ha s always been at par with the international standards. It is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certifications. The equity market capitalization of the companies listed on the BSE was US$1.63 trillion as of December 2010, making it the 4th largest stock exchange in Asia and the 8th largest in the world. The BSE has the largest number of listed companies in the world. As of June 2011, there are over 5,085 listed Indian companies and over 8,196 scrips on the stock exchange, the Bombay Stock Exchange has a significant trading volume. Though many other exchanges exist, BSE and the National Stock Exchange of India account for the majority of the equity trading in India. National Stock Exchange (NSE) : With the liberalization of the Indian economy, it was found inevitable to lift

the Indian stock market trading system on par with the international standards. On the basis of the recommendations of high powered Pherwani Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India (IDBI), Industrial Credit and Investment Corporation of India (ICICI), Industrial Finance Corporation of India (IFCI), all Insurance Corporations, selected commercial banks and others. Trading at NSE takes place through a fully automated screen-based trading mechanism which adopts the principle of an order-driven market. Trading members can stay at their offices and execute the trading, since

389


they are linked through a communication network. The prices at which the buyer and seller are willing to transact will appear on the screen. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member. NSE has several advantages over the traditional trading exchanges. They are as follows : 



NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhere in the country since inter-market operations are streamlined coupled with the countrywide access to the securities.



Delays in communication, late payments and the malpractice’s prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations, with the support of total computerized network.

Over The Counter Exchange of India (OTCEI) : The traditional trading mechanism prevailed in the Indian

stock markets gave way to many functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long settlement periods and benami transactions, which affected the small investors to a great extent. To provide improved services to investors, the country's first ring less, scrip less, electronic stock exchange OTCEI - was created in 1992 by country's premier financial institutions - Unit Trust of India (UTI), Industrial Credit and Investment Corporation of India (ICICI), Industrial Development Bank of India (IDBI), SBI Capital Markets, Industrial Finance Corporation of India (IFCI), General Insurance Corporation and its subsidiaries and CanBank Financial Services. Compared to the traditional Exchanges, OTC Exchange network has the following advantages : 

OTCEI has widely dispersed trading mechanism across the country which provides greater liquidity and lesser risk of intermediary charges.



Greater transparency and accuracy of prices is obtained due to the screen-based scrip less trading.



Since the exact price of the transaction is shown on the computer screen, the investor gets to know the exact price at which she/he is trading.



Faster settlement and transfer process compared to other exchanges.

Derivative Markets : The emergence of the market for derivative products such as futures and forwards can be

traced back to the willingness of risk-averse economic agents to guard themselves against uncertainties arising out of price fluctuations in various asset classes. This instrument is used by all sections of businesses, such as corporate, SMEs, banks, financial institutions, retail investors, etc. According to the International Swaps and Derivatives Association, more than 90 percent of the global 500 corporations use derivatives for hedging risks in interest rates, foreign exchange, and equities. Three broad categories of participants—hedgers, speculators, and arbitragers—trade in the derivatives market.

390




Hedgers face risk associated with the price of an asset. They belong to the business community dealing

with the underlying asset to a future instrument on a regular basis. They use futures or options markets to reduce or eliminate this risk. 

Speculators have a particular mindset with regard to an asset and bet on future movements in the asset’s

price. Futures and options contracts can give them an extra leverage due to margining system. 

Arbitragers are in business to take advantage of a discrepancy between prices in two different markets. For

example, when they see the futures price of an asset getting out of line with the cash price, they will take offsetting positions in the two markets to lock in a profit.

3. DEBT MARKET IN INDIA Debt market refers to the financial market where investors buy and sell debt securities, mostly in the form of bonds. These markets are important source of funds, especially in a developing economy like India. India debt market is one of the largest in Asia. The most distinguishing feature of the debt instruments of Indian debt market is that the return is fixed. This means, returns are almost risk-free. This fixed return on the bond is often termed as the 'coupon rate' or the 'interest rate'. Therefore, the buyer (of bond) is giving the seller a loan at a fixed interest rate, which equals to the coupon rate.

3.1. Classification of Indian Debt Market Indian debt market can be classified into two categories : Government Securities Market (G-Sec Market) : It consists of central and state government securities. It

means that, loans are being taken by the central and state government. It is also the most dominant category in the India debt market. Bond Market : It consists of Financial Institutions bonds, corporate bonds and debentures and Public Sector

Units bonds. These bonds are issued to meet financial requirements at a fixed cost and hence remove uncertainty in financial costs. Advantages : The biggest advantage of investing in Indian debt market is its assured returns. The returns that

the market offer is almost risk-free (though there is always certain amount of risks, however the trend says that return is almost assured). Safer are the government securities. On the other hand, there are certain amounts of risks in the corporate, FI and PSU debt instruments. However, investors can take help from the credit rating agencies which rate those debt instruments. Another advantage of investing in India debt market is its high liquidity. Banks offer easy loans to the investors against government securities. Disadvantages : As there are several advantages of investing in India debt market, there are certain

disadvantages as well. As the returns here are risk free, those are not as high as the equities market at the same

391


time. So, at one hand we are getting assured returns, but on the other hand, we are getting less return at the same time. Retail participation is also very less here, though increased recently. Debt Instruments : There are various types of debt instruments available that one can find in Indian debt

market. Government Securities : It is the Reserve Bank of India that issues Government Securities or G-Secs on behalf

of the Government of India. These securities have a maturity period of 1 to 30 years. G-Secs offer fixed interest rate, where interests are payable semi-annually. Corporate Bonds : These bonds come from PSUs and private corporations and are offered for an extensive

range of tenures up to 15 years. Comparing to G-Secs, corporate bonds carry higher risks, which depend upon the corporation, the industry where the corporation is currently operating, the current market conditions, and the rating of the corporation. However, these bonds also give higher returns than the G-Secs. Certificate of Deposit : These are negotiable money market instruments. Certificate of Deposits (CDs), which

usually offer higher returns than Bank term deposits, are issued in Demat form and also as a Usance Promissory Notes. There are several institutions that can issue CDs. Banks can offer CDs which have maturity between 7 days and 1 year. CDs from financial institutions have maturity between 1 and 3 years. There are some agencies like ICRA, FITCH, CARE, CRISIL etc. th at offer ratings of CDs. CDs are available in the denominations of ` 1 Lac and in multiple of that. Commercial Papers : There are short term securities with maturity of 7 to 365 days. CPs is issued by corporate

entities at a discount to face value. Zero Coupon bonds (ZCBs) : ZCBs are available at a discount to their face value. There is no interest paid on

these instruments but on maturity the face value is redeemed from the RBI. A bond of face value 100 will be available at a discount say at Rs 80 and the date of maturity is after two years. This implies an interest rate on the instrument. When the bonds are redeemed Rs 100 will be paid. The securities do not carry any coupon or interest rate i.e. unlike dated securities no interest is paid out every year. When the bond matures the face value is returned. The difference between the issue price (discounted price) and face value is the return on this security.

3.2. Private Corporate Debt Market The private corporate debt market provides an alternative means of long-term resources (alternative to financing by banks and financial institutions) to corporate. Corporates in India have traditionally relied heavily on borrowings from banks and financial institutions (FIs) to finance their investments. Equity financing was also used, but largely during periods of surging equity prices. However, bond issuances by companies have remained limited in size and scope. Given the huge funding requirements, especially for long-term infrastructure projects, the private corporate debt market has a crucial role to play and needs to be nurtured.

392


Significance of the Corporate Debt Market : From the perspective of developing countries, a liquid corporate

bond market can play a critical role in supporting economic development as it supplements the banking system to meet the requirements of the corporate sector for long-term capital investment and asset creation. It provides a stable source of finance when the equity market is volatile. Further, with the decline in the role of specialized financial institutions, there is an increasing realization of the need for a well-developed corporate debt market as an alternative source of finance. Corporate bond markets can also help firms reduce their overall cost of capital by allowing them to tailor their asset and liability profiles to reduce the risk of maturity and currency mismatches. A private corporate bond market is important for nurturing a credit culture and market discipline. In many Asian economies, banks have traditionally been performing the role of financial intermediation. The East Asian crisis of 1997 underscored the limitations of weak banking systems. The primary role of a banking system is to create and maintain liquidity that is needed to finance production within a short-term horizon. The crisis showed that over-reliance on bank lending for debt financing exposes an economy to the risk of a failure of the banking system. Banking systems, therefore, cannot be the sole source of long-term investment capital without making an economy vulnerable to external shocks. In times of financial distress, when banking sector becomes vulnerable, the corporate bond markets act as a buffer and reduce macroeconomic vulnerability to shocks and systemic risk through diversification of credit and investment risks. By contributing to a more diverse financial system, a bond market can promote financial stability. State of the Corporate Debt Market in India : In India, banks and FIs have traditionally been the most

important external sources of finance for the corporate sector. India has traditionally been a predominantly bank-based system. This picture is generally characteristic of most Asian economies. In the 1990s, the equity market in India witnessed a series of reforms, which helped in bringing it on par with international standards. However, the corporate debt market has not been able to develop due to lack of market infrastructure and a comprehensive regulatory framework. For a variety of reasons, the issuers resorted to ‘private placement’ of bonds as opposed to ‘public issues’ of bonds. The issuances of bonds to the public have declined sharply since the early 1990s. From an annual average of Rs.7,513 crore raised by way of public debt issues during 1990-95, the mobilization fell to Rs.5,526 crore during 1995-2000 and further to Rs.4,433 crore during 2000-05. In 2005-06, the mobilisation of funds by public issue of debt shrank to a measly sum of Rs.245 crore, while the resources raised by way of private placement of debt swelled to Rs.96,369 crore. The share of resources raised by private placements in total debt issues correspondingly increased from 69.1 per cent in 199596 to 99.8 per cent in 2005-06. This trend continued in 2006-07 also & further.

3.3. Private Placement Market in India In private placement, resources are raised privately through arrangers (merchant banking intermediaries) who place securities with a limited number of investors such as financial institutions, corporate and high net worth individuals. Under Section 81 of the Companies Act, 1956, a private placement is defined as ‘an issue of shares or of convertible securities by a company to a select group of persons’. An offer of securities to more than 50 persons is deemed to be a public issue under the Act. Corporate access the private placement market because of its certain inherent advantages. First, it is a cost and

393


time-effective method of raising funds. Second, it can be structured to meet the needs of the entrepreneurs. Third, private placement does not require detailed compliance of formalities as required in public or rights issues. The private placement market was not regulated until May 2004. In view of the mushrooming growth of the market and the risk posed by it, SEBI prescribed that the listing of all debt securities, irrespective of the mode of issuance, i.e. , whether issued on a private placement basis or through public/rights issue, shall be done through a separate listing agreement. The Reserve Bank also issued guidelines to the financial intermediaries under its purview on investments in non-SLR securities including, private placement. In June 2001, boards of banks were advised to lay down policy and prudential limits on investments in bonds and debentures, including cap on unrated issues and on a private placement basis. The policy laid down by banks should prescribe stringent appraisal of issues, especially by non-borrower customers, provide for an internal system of rating, stipulate entry-level minimum ratings/quality standards and put in place proper risk management systems. The private placement market in India, which shot into prominence in the early 1990s, has grown sharply in recent years. The resource mobilization by way of private placements increased from Rs.13,361 crore in 199596 to Rs.96,369 crore in 2005-06, recording an average annual growth of over 25 per cent during the decade. Further, the private placement market appears to be growing at the expense of the public issues market, which has some distinct advantages in the form of wider participation by the investors and, thus, diversification of the risk. With the intent of the development of the corporate bond market along sound lines, some initiatives were taken by the SEBI in the past few years. These measures largely aimed at improving disclosures in respect of privately placed debt issues.

4. REGULATORY FRAMEWORK The Securities and Exchange Board of India (SEBI) is the regulatory authority established under the SEBI Act 1992, in order to protect the interests of the investors in securities as well as promote the development of the capital market. It involves regulating the business in stock exchanges; supervising the working of stock brokers, share transfer agents, merchant bankers, underwriters, etc; as well as prohibiting unfair trade practices in the securities market.

394


Securities and Exchange Board of India

SEBI Bhavan, Mumbai headquarters

4.1. History Initially SEBI was a non statutory body without any statutory power. However in 1995, the SEBI was given additional statutory power by the Government of India through an amendment to the securities and Exchange Board of India Act 1992. In April, 1998 the SEBI was constituted as the regulator of capital market in India under a resolution of the Government of India.

4.2. The basic objectives of the Board were identified as : 

to protect the interests of investors in securities;



to promote the development of Securities Market;



to regulate the securities market and



For matters connected therewith or incidental thereto.

4.3. Responsibilities SEBI has to be responsive to the needs of three groups, which constitute the market:

395




the issuers of securities



the investors



The market intermediaries.

4.4. Role Functions of SEBI The role or functions of SEBI are discussed below : To protect the interests of investors through proper education and guidance as regards their investment in securities. For this, SEBI has made rules and regulation to be followed by the financial intermediaries such as brokers, etc. SEBI looks after the complaints received from investors for fair settlement. It also issues booklets for the guidance and protection of small investors. To regulate and control the business on stock exchanges and other security markets. For this, SEBI keeps supervision on brokers. Registration of brokers and sub-brokers is made compulsory and they are expected to follow certain rules and regulations. Effective control is also maintained by SEBI on the working of stock exchanges. To provide suitable training to intermediaries. To register and regulate the working of mutual funds including UTI (Unit Trust of India). SEBI has made rules and regulations to be followed by mutual funds. The purpose is to maintain effective supervision on their operations & avoid their unfair and anti-investor activities. To promote self-regulatory organization of intermediaries. SEBI is given wide statutory powers. However, selfregulation is better than external regulation. Here, the function of SEBI is to encourage intermediaries to form their professional associations and control undesirable activities of their members. To regulate and control the fraudulent & unfair practices which may harm the investors and healthy growth of capital market. To issue guidelines to companies regarding capital issues. Separate guidelines are prepared for first public issue of new companies, for public issue by existing listed companies and for first public issue by existing private companies. SEBI is expected to conduct research and publish information useful to all market players (i.e. all buyers and sellers). To conduct inspection, inquiries & audits of stock exchanges, intermediaries and self-regulating organizations and to take suitable remedial measures wherever necessary. This function is undertaken for orderly working of stock exchanges & intermediaries. To restrict insider trading activity through suitable measures. This function is useful for avoiding undesirable activities of brokers and securities scams.

396


4.5. Powers For the discharge of its functions efficiently, SEBI has been invested with the necessary powers which are : 

To approve by laws of stock exchanges.



To require the stock exchange to amend their by laws.



Inspect the books of accounts and call for periodical returns from recognized stock exchanges.



Inspect the books of accounts of financial intermediaries.



Levy fees and other charges on the intermediaries for performing its functions.



Delegate powers exercisable by it.



Prosecute and judge directly the violation of certain provisions of the companies Act.

5. EFFECT OF INFLATION ON CAPITAL MARKET Prices of stocks are determined by the net earnings of a company. It depends on how much profit, the company is likely to make in the long run or the near future. If it is reckoned that a company is likely to do well in the years to come, the stock prices of the company will escalate. On the other hand, if it is observed from trends that the company may not do well in the long run, the stock prices will not be high. In other words, the prices of stocks are directly proportional to the performance of the company. In the event when inflation increases, the company earnings (worth) will also subside. This will adversely affect the stock prices and eventually the returns. Effect of inflation on stock market is also evident from the fact that it increases the rates if interest. If the inflation rate is high, the interest rate is also high. In the wake of both (inflation and interest rates) being high, the creditor will have a tendency to compensate for the rise in interest rates. Therefore, the debtor has to avail of a loan at a higher rate. This plays a significant role in prohibiting funds from being invested in stock markets. When the government has enough funds to circulate in the market, the cost of goods, services usually go up. This leads to the decrease in the purchasing power of individuals. The value of money also decreases. In a nut shell, for the economy to flourish, inflation and stock market ought to be more conforming and predictable.

397


6. THE INDIAN CAPITAL MARKET : GROWTH WITH GOVERNANCE A report released by PricewaterhouseCoopers (PwC) and ASSOCHAM, charts the journey of the Indian capital market from the pre-reform era to the liberalised market of this decade. The report emphasises the importance of SEBI, as the supreme regulator of the Indian capital market, and the various steps taken by SEBI to maintain investor confidence in the market. The report states that while, India has achieved the desired acceptability on the global map, however the change must continue, to address the challenges of modern day, newer products needs to be introduced to ensure that innovation continues, while ensuring market best practices to take Indian capital markets to the next level of globalisation. The imperative need to bring forward 2nd generation financial sector reforms will propel the Indian capital markets to possibly double digit GDP growth. The capital market plays a vital role in fostering economic growth of the country, as it augments the quantities of real savings; increases the net capital inflow from abroad; raises the productivity of investments by improving allocation of investible funds; and reduces the cost of capital in the economy.

7. REFORMS IN CAPITAL MARKET OF INDIA The major reform undertaken in capital market of India includes : Establishment of SEBI : The Securities and Exchange Board of India (SEBI) was established in 1988. It got a

legal status in 1992. SEBI was primarily set up to regulate the activities of the merchant banks, to control the operations of mutual funds, to work as a promoter of the stock exchange activities and to act as a regulatory authority of new issue activities of companies. Establishment of Creditors Rating Agencies : Three creditors rating agencies viz. The Credit Rating

Information Services of India Limited (CRISIL - 1988), the Investment Information and Credit Rating Agency of India Limited (ICRA - 1991) and Credit Analysis and Research Limited (CARE) were set up in order to assess the financial health of different financial institutions and agencies related to t he stock market activities. It is a guide for the investors also in evaluating the risk of their investments. Increasing of Merchant Banking Activities : Many Indian and foreign commercial banks have set up their

merchant banking divisions in the last few years. These divisions provide financial services such as underwriting facilities, issue organizing, consultancy services, etc. Rising Electronic Transactions : Due to technological development in the last few years. The physical

transaction with more paper work is reduced. It saves money, time and energy of investors. Thus it has made investing safer and hassle free encouraging more people to join the capital market. Growing Mutual Fund Industry : The growing of mutual funds in India has certainly helped the capital

market to grow. Public sector banks, foreign banks, financial institutions and joint mutual funds between the Indian and foreign firms have launched many new funds. A big diversification in terms of schemes, maturity, etc. has taken place in mutual funds in India. It has given a wide choice for the common investors to enter the capital market. Growing Stock Exchanges : The numbers of various Stock Exchanges in India are increasing. Initially the BSE

398


was the main exchange, but now after the setting up of the NSE and the OTCEI, stock exchanges have spread across the country. Recently a new Inter-connected Stock Exchange of India has joined the existing stock exchanges. Investor's Protection : Under the purview of the SEBI the Central Government of India has set up the Investors

Education and Protection Fund (IEPF) in 2001. It works in educating and guiding investors. It tries to protect the interest of the small investors from frauds and malpractices in the capital market. Growth of Derivative Transactions : Since June 2000, the NSE has introduced the derivatives trading in the

equities. In November 2001 it also introduced the future and options transactions. These innovative products have given variety for the investment leading to the expansion of the capital market. Commodity Trading : Along with the trading of ordinary securities, the trading in commodities is also recently

encouraged. The Multi Commodity Exchange (MCX) is set up. The volume of such transactions is growing at a splendid rate. These reforms have resulted into the tremendous growth of Indian capital market.

8. REFERENCES [1] Stock Exchange Official Directory, Vol.2 (9) (iii), Bombay Stock Exchange, Bombay [2] http://business.mapsofindia.com/india-market/debt.html [3] Bank for International Settlements, 2006 [4] RBI; National Stock Exchange of India Limited [5] http://www.equitymaster.com [6] http://www.businessdictionary.com/definition/stock-exchange.html [7] http://www.yeahindia.com/c-india1.htm [8] http://en.wikipedia.org/wiki/Capital_market [9] http://kalyan-city.blogspot.com/2010/09/reforms-developments-in-indian-capital.html [10] http://www.pwc.com/in/en/publications/india-captial-market-11-feb.jhtml [11] http://business.gov.in/business_financing/capital_market.php [12] http://www.economywatch.com/market/capital-market/indian.html



399

9 Juhi Ahuja 812 Research Communication

Recommend Documents