Question

Provide commentary on main features of the India's capital market.

Answer 1

Main features of the India's capital market:

· Deals with long-term debt (over a year) or equity-backed securities (like any other county’s capital market).

· Lenders and borrowers are linked with the help of intermediaries, in addition to over-the-counter trading.

· A major source of capital formation in the country.

· Participants of the capital market in India include foreign investors and non-resident investors.

· Deals with marketable and non-marketable securities.

· Broad Constituents in the Indian capital markets are fund raisers, fund providers, intermediaries, organizations and market regulators.

· Provision of funds for projects in backward areas.

· The Securities and Exchange Board of India (SEBI) and Reserve Bank of India are the two regulatory authorities.