The Financial market in India is growing rapidly and is expected to emerge as one of the leaders in the international arena very soon. This booming financial market is stimulating the growth of the Indian capital market. The investors are also encouraged to make huge investment in the securities market.
All these positive changes are responsible for the recent record set by the Bombay Stock Exchange when it touched 18,000 points. The Indian capital market is looking very promising at present. The policies regarding the capital market have been revised and the factor of transparency and investor’s security is considered as the most important aspect of the market.
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Along with these, the introduction of the T + 3 settlement system, has modernized the settlement procedures and also reduced the necessary time needed for the settlements.
Because of these positive efforts, the Indian capital market is gaining pace inspite of several shocks in form of scams. Several new sectors including the service sector, are adding new edges in the Indian capital market.
Along with these, there are the sunrise industries which are also playing a major role in this development. The growth of these sectors are caused mainly by the industrial growth in the country. Indian economy was an agriculture based economy in the past. But now, the country is following the path of industrial economy and this is a major change. This has not only helped to increase the export revenues but also helped the Indian capital markets to become self sufficient.
There are some other factors that are reponsible for the progress of the Indian capital market. The system of administered interest rate was followed in India. But according to the new policies, this system has been demolished. Because of this, the organizations like Provident Fund Organization are looking for new areas where they can invest the accumulated money so that it can grow quickly. The search is destined to end in the Indian stock markets. Although there are some risk factors, but the promises of the Indian capital market are much larger.
Last Updated on : 21st July 2016