Reformation of capital market & review of capital formation-An analytical approach

The capital market provides funds for long term purpose. Indian Stock markets contribute to the generation of funds through the IPO's. It has undergone rapid transformation and attracted a large number of investors. The foreign Institutional Investors (FII's) participate in the stock market. The capital market is reformed after the establishment of National Clearing & Settlement Corporation. The Badla market is been replaced by Options Market. Derivatives are freely traded. Thus there is a refinement and transparency in the functioning of stock exchanges. The number of investors has increased but also there is a requirement to make changes in the management of stock exchanges. The Indian Capital Market has a great future, provided, there is a steady economic growth.