Corporate Laws

Indian Capital Market : Meaning, Importance, Instruments , Primary and secondary Market.

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In this article we will discuss about Indian Capital Market : Meaning, Importance, Instruments , Primary and secondary Market.


Also Read : Difference between Capital Market and Money Market with its comparison chart

Meaning of Capital Market :

Indian Capital Market : Meaning, Importance, Instruments , Primary and secondary Market.

Capital Market is a place where long term funds are raised through trade on debt and equity securities.Capital Market also known as securities market, and it deals in long term loan. It supplies with fixed and working capital and long term and  medium term borrowing.

Importance of Capital Market :

1). Mobilizing savingIndian Capital Market : Meaning, Importance, Instruments , Primary and secondary Market.

2).Providing capital market

3).Economic development

4).Encouragement of Investment

5). Encouragement of savings

⇒ Difference between Primary and Secondary Market :

            Basis                                                         Primary Market              Secondary Market                                                  
MeaningPrimary market is a place where new shares are issues or it is a market for new shares  Secondary market is a place of trading of existing shares
Types of Purchasing                          Direct             Indirect
Imtermediary                          Underwriters             Brokers

 

Instruments of Capital Market :

       Stock
      Bonds
  Debentures
   Treasury bills
 Foreign exchange
   Fixed deposits


SECURITY MARKET :

Security Market is a place where securities are buy and sell between subject of economy.

Role of SEBI [ Security Exchange Board of India ]

  • SEBI controls capital market
  • SEBI also protect interest on investors
  • Opening New stock exchange in india
  • Power to make rules for controlling stock exchange
  • Providing licence to dealers and brokers
  • Stop frauds in capital market

So we have discussed Indian Capital Market : Meaning, Importance, Instruments , Primary and secondary Market. For any query comment below.

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