Indian Capital Market — Features and Growth

A company that wants to build a new factory does not borrow that money overnight from another bank — it needs funds it can use for years, from investors willing to wait years to be repaid. That is the capital market's job, and it works only because a regulator stands behind it making sure the company, and everyone trading in its shares, plays by the rules.

In two minutes

The Indian capital market is the market for long-term funds — raised through shares, debentures and bonds — organised through the primary market (new issues) and the secondary market (stock exchanges), and regulated principally by SEBI, with the Reserve Bank of India and commercial banks playing supporting institutional roles.

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