Business Ethics and Corporate Governance, Second Edition

PRIMARY MARKET REFORMS

The primary capital market plays an important role in the overall functioning of securities market. Vibrancy of primary market, among other things, is a function of macro economic factors, industrial output and demand. Over the years, the Securities and Exchange Board of India, the market regulator, has taken several initiatives to improve the operational efficiency and transparency of the primary market, which provides investors with issues of high quality and for firms a market where they can raise resources in a cost-effective manner. However, despite these measures the primary market remained lackluster in recent years.

Bonds have been the primary instruments for the resource mobilisation in the primary market followed ...