Capital Market Reforms in India: A New Era of Transparency and Efficiency
Keywords:
Capital Market, Transparency and EfficiencyAbstract
Capital markets play a vital role in economic development by facilitating capital formation, offering investment opportunities, and ensuring efficient resource allocation. Over the years, significant reforms have been implemented to enhance transparency, investor protection, and market efficiency. The establishment of the Securities and Exchange Board of India (SEBI) has played a transformative role in reshaping the Indian financial system. These reforms have led to greater transparency, easier access to international markets, and improved investor protection by restructuring stock exchanges and introducing robust surveillance and monitoring systems. Additionally, the establishment and technological advancements in stock exchanges such as the National Stock Exchange (NSE) and the Over-the-Counter Exchange of India (OTCEI) have revolutionized trading mechanisms, making markets more accessible and efficient. The NSE, with its fully automated screen-based trading system, has significantly enhanced market integrity, while OTCEI has provided a platform for small and medium enterprises to access capital efficiently. This paper explores the major reforms in capital markets .
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