Business Ethics and Corporate Governance, Second Edition

PHENOMENAL GROWTH OF THE INDIAN CAPITAL MARKET

At the time of Independence, there were very few corporations in India. Notwithstanding the absence of a corporate culture in the post-Independence era, there was an appreciable growth in the capital market especially after 1985. The Indian capital market by 1990 was one of the fastest growing markets in the world. The number of companies listed on the stock exchange, close to 6000, was the second highest after the US and by 1995 the number rose to 8,593. Presently, there are more than 10,000 listed companies in the country’s 25 stock exchanges. Shareholding public is estimated at 20 million. Value of securities traded increased from $5 billion in 1985 to $21.9 billion in 1990, which was the fourth-largest ...