• BSE
  • NSE

Research

OVERVIEW

Capital Market is a market for securities where companies or institutions get a platform to raise long term capital. The capital market can be classified into primary market and secondary market. Primary Market comprises of a market for new issues of shares, and debentures, where investors apply directly to the issuer/company for allotment of securities. Once the issue is closed the securities are listed on Stock Exchanges. Secondary Market, on the other hand, comprises of the buyers and sellers of shares and debentures subsequent to the original issues.

A stock exchange is the single most important institution in the secondary market for securities being the market where trading on the listed securities takes place through stock exchanges.

Indian Capital Market comprises of Cash, F&O, Currency Derivatives, Commodity Derivatives & Debt Market. A large number of intermediaries provide intermediation services in the market. These intermediaries may be grouped as Development Financial Institutions and Financial Market Intermediaries.

Capital markets play a significant role as a source of long-term funds to the government and corporate bodies and comprise of both debt and equity shares. Particularly in a developing economy capital markets help to bridge investment and saving gaps by providing a cost-effective mode of raising finance. On the other hand, capital markets provide an alternative investment platform as an attractive destination to park surplus funds.