Capital market in india

by Our City Forest
Capital market in india

: Explain the role of capital market in the economic development of a nation?

Ans: SIGNIFICANCE OF CAPITAL MARKETS IN INDIA

*INTRODUCTION:

~ Capital market is the market for leading and borrowing of medium and long term funds.

~ The demand for long-term funds comes from industry, trade, agriculture and government (central and state).

~ The supply for funds comes from individual savers, corporate savings, banks, insurance companies, specialized financial institutions and government.

~ Capital market has three different categories:-

i) Government securities market:

^ It is also called Gilt-edged market.

^ It

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