5

The Capital Market

Chapter Objectives

This chapter will enable you to develop an understanding of the following:

  1. Functions of the capital market

  2. Primary capital market and secondary capital market

  3. History of the Indian capital market

  4. Capital market scams

  5. Reforms in the capital market

INTRODUCTION

The capital market is an important constituent of the financial system. It is a market for long-term funds—both equity and debt—and funds raised within and outside the country.

The capital market aids economic growth by mobilising the savings of the economic sectors and directing the same towards channels of productive use. This is facilitated through the following measures.

  • Issue of ‘primary securities’ in the ‘primary market,’ i.e., directing ...

Get The Indian Financial System: Markets, Institutions and Services, 3rd Edition now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.

Start your free trial