MAHARASHTRA NATIONAL LAW UNIVERSITY

ECONOMICS SYNOPSIS

TOPIC – CAPITAL MARKET OF INDIA AND IT’S

IMPORTANCES

NAME – Kamran Tamboli

SECTION - A

ENROLMENT NO - 2020 043

GROUP MEMBERS – No Group Members

SUBMITTED TO - Prof. Rohit Jadhav

 Introduction
The capital market is a long-term loan market. It supplies fixed and working
capital to industry and finances central, state and local governments' medium-term
and long-term borrowings. The ordinary stock capital markets are stocks and
debentures of corporations, as well as government bonds and securities.

Capital funds are provided by investors who have savings, trading banks, trade
banks and non-bank intermediaries, for instance insurance companies, financial
firms, trusts, investment trusts, venture capital, lease finance, mutual funds,
building companies, etc.

In addition, there are emitting companies which don't provide capital but subscribe
to companies' shares and debentures and help to sell their new share and debenture
issues. For a range of expenditures and assets, requests for funds come from joint
stock companies for work and fixed capital assets and inventories and local, state
and central government, improvement trusts, port trust etc.
In the stock market, the capital market functions. A stock market is a market that
allows for shares, stocks, bonds, securities and debentures to be bought and sold. In
fact, the capital market is related to the supply and demand for new capital, and the
stock exchange facilitates such transactions.

The capital market therefore comprises a complex of institutions and mechanisms,

which collect and make available medium-term and long-term money to
individuals, businesses and governments. The process also includes the transfer of
already outstanding securities.
Research Problem

The main research problems of my research paper are as follows :

After analyzing the capital market , the main problem which is going to get
discussed way forward is :-

1. What are the main function of capital market?

2. What is capital market in now days in india?

3. Importances of capital market in india ?

 Literature Review

Miss. KiranGangawani 2015 in her paper titled “Emerging trends in

Indian Capital market” (2015) has explained the capital market takes an
important role in the economic development of a country. It provides
financial support to the sectors of the economy. To improve the market,
the efciency and to enhance the transparency of the capital market
where the main objective to develop the capital market. Implementation of
the repeal of capital issues contract Act, Qualied Institution
Placement(QIP), and other major reforms have strengthened the Indian
capital market that resulted in an effective regulatory framework

(Anitha and A. Praveen 2012) –”Capital market reforms in India”

(2012) have stressed on the capital market reforms that took place to the post
introduction of new economic policy 1991. The authors have identied the
major capital market reforms to the post introduction of LPG. SEBI and the
Indian government have taken various steps for the growth of Indian stock
exchanges. Establishment of Investors Protection Fund (2001), CCIL (2001),
NSDL (1998), and other institutions have resulted in a productive and
transparent capital market.

Parray Firdous Ahamad and Tiwari Anshiya 2015) through their

research paper titled “Indian Capital Market: A Review” (2015)
identied the growth of the capital market since the last decade. Authors have
explained the growth of the mutual fund industry; the insurance sector and
the stock exchanges have resulted in the speedy growth of the Indian
economy, which has attracted foreign institution investors (FII) directly and
dimensionally.

Research Objectives

The objectives of my research paper are as follows :-

1. What is capital Market and Type, Functions

2. To Highlight the Role and Importance of Capital market in India.

3. To know the Factors Responsible for Growth and Development of

 capital market

4. Reforms in capital market since 1991.

Research Methodology

The research is based on secondary information sources published by various

institutions, organisations, published newspapers, online and printed journals,
magazines, websites, and books.
The data are gathered from libraries and websites. The literature is verified for the
latest information and checked

Chapterization of the research paper

First chapter – In the first chapter discussed about capital market. What is Capital
Market and function of capital market and instrument of Capital Market.

Second chapter – In second chapter I discussed Role of Capital Market in India and
its Importance.

Third chapter – In third Chapter discussed the factor responsible for development
of capital market in India.

Fourth Chapter – In fourth Chapter discussed the Reform era In Capital Market.

Sources and references

1. https://www.yourarticlelibrary.com/banking/capital-market-meaning-features-and-
importance-of-capital-market/11128

2. https://theqna.org/role-of-capital-market-in-india/
3. http://brijesh-mishra.blogspot.com/2009/07/factors-responsible-for-growth-of.html

4.
https://www.researchgate.net/publication/337676067_Capital_Markets_in_India_A_Con
ceptual_Framework