3. WHY CAPITAL MARKET EXIST
The capital Markets Facilitate the transfer of
Capital (i,e Financial) assets from one owner to
another.
They provide liquidity .
. Liquidity Refers to how easily an asset can be
transferred without loss of value.
A side benefit of capital market is that the
transaction price provide a measure of value of
asset
4. GROWTH OF CAPITAL MARKET IN
INDIA
Origins of trading -East India company
Post independence-capital issues control ACT.
Only nationalized companies allowed to raise
capital .
The
securities contract regulation ACT 1956
Only stock exachange recognized by the
government of India permitted to function
Foreign exchange regulations ACT 1973.
5.
6. HISTORICALLY SPEAKING
Started in 1850 Front of TOWN-HALL IN BOMBAY
currently known as HORNIMAN CIRCLE.
Formed in1875 as Bombay stock exachange
In1986 launched it's first stock index name SENSEX
with base year 1978-79.
Non profit association and evaluated as the Premier
stock exachange.
Old Stock exachange of Asia
Account for 75%listed Capital and 75%of shares in
terms of market capitalization securites in India.
It's turnover is1/3Eddie of the total turnover Is
securities in India..
7.
8. ROLE OF CAPITAL MARKET
Mobilization of savings and acceleration of
capital formation.
promotion of industrial growth
Raising of long term capital
Ready and continues market
Proper channalisation of fund
Provision of a variety Of services
9. Factors contributing to growth of
Indian capital market
Establishment of development banks and industrial
financial institution
Legislative measures
Growing public confidence
Increasing awareness of investment opportunities
Growth underwriting business
Setting of SEBI
mutual funds
Credit rating agencies
10. INDIAN CAPITAL MARKET-
CHRONOLOGY
1994-Equity trading Commences On NSE
1995- All trading goes Electronic
1996-depository comes in to existence
1999- FIIS participation -Globalization
2000- over 80% trandes in demat Form
2001-major stock move to Rolling Sett
2003-T+2 Settelment in all stocks
2003-Demutalisation of exchange
11. CAPITAL MARKET REFORMS
IN INDIA
The 1990's witness the Emergence of the securities
market as a major source of finance for trade and
industry in India
A growing number of companies have been
accessing the securities market rather than
depending on loons from financial institutions
/banks
The corporate sector is increasing depending on
external Sourcess for Meeting it's funding
requirements.
12. Companies free to raise funds from securities
market after filling prospects with SIBI
NSE establishment as a stock exchange With
national wide electronic trading
BSE introduces screen based trending
NSCCL Set up NSE
13. MARKET STRUCTURE [JULLY
31,2005]
22 stock Exachange
Over 1000 Electronic terminals over 400 locations
all over India
9108 stock brokers and 14582 sub brokers
9644 listedCompanies
2 Depositories and 483 Depository participants
128 Merchant bankers 59 underwriters
34 Debenture Trustees 96 portfolio managers
83 Registors and transfer agents 59bankers to
issue , 4credit rating agencies
14. CONCLUSION
The lack of an advanced capital market can
lead to underutilization of financial resources
The developed capital market also provide
access to the foreign capital for domestic
industry
This capital market definitely plays a
constructive role in the over all development
of economy.
15. Evaluation1. When capital market started
(a)1865 (b)1856
(c)1850 (d) 1852
2. In which place capital market
Started
(a)Kolkata. (b)Mumbai
(c) Bombay (d)Delhi
3. Which are the right Roles of capital
Market
① Promotion of industrial growth
② Provision of long term capital
③ Raising of long term capital
16. (a)All Of them (b)None of them
(c) A andB (d) C and D.....
18. REFERENCE
https//www.citeman.com---sree Rama,History of
Indian capital market.
https//www.slides share. Net {project on capital
market }««Alina Ali 2009-10--------Role and
Growth of capital market
Shodhaganga in flib net ac. in(pdf)-india capital
market chronology.
https//www.all subject journal. Companies>pdf--
reforms and other topic
