Question

Explain the capital market reforms in India.

Answer 1

The major reforms undertaken in capital market of India includes:-

• Establishment of SEBI:The SEBI was set up with the fundamental objective, "to protect the interest of investors in securities market and for matters connected therewith or incidental thereto."
  
• Increasing of Merchant Banking Activities: It has proved as a helping hand to factors related to the capital market
• Growing Mutual Fund Industry:The growing of mutual funds in India has certainly helped the capital market to grow. Public sector banks, foreign banks, financial institutions and joint mutual funds between the Indian and foreign firms have launched many new funds
  
• Investor's Protection :It works in educating and guiding investors. It tries to protect the interest of the small investors from frauds and malpractices in the capital market.