Business Ethics and Corporate Governance, Second Edition

DEVELOPMENT OF THE INDIAN CAPITAL MARKET

The Indian capital market, as pointed out earlier, has undergone many significant changes since independence. The important factors that have contributed to the development of the Indian capital market are given below:

1. Legislative measures: Laws such as the Companies Act, the Securities Contracts (Regulation) Act and the Capital Issues (Control) Act had empowered the government to regulate the activities of the capital market with a view to assuring healthy trends in the markets, protecting the interest of the investor, efficient utilization of the resources, etc.
2. Establishment of development banks and expansion of the public sector: Starting with the establishment of the Industrial Finance Corporation ...