In this article we will discuss about Indian Capital Market : Meaning, Importance, Instruments , Primary and secondary Market.
Meaning of Capital 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 saving
2).Providing capital market
4).Encouragement of Investment
5). Encouragement of savings
⇒ Difference between Primary and Secondary Market :
|Basis||Primary Market||Secondary Market|
|Meaning||Primary 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|
Instruments of Capital Market :
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.