Role of Capital Market Instruments towards Development of Indian Economy: A Study with Special Reference to Bombay Stock Exchange (BSE)

Abstract

The basic reason for this study is to investigate how capital market instruments contribute towards the development of the Indian economy by making the relationship between the money market and capital market instruments. Indian capital market plays a vital role in the monetary development of the country. Stock market professionals have given numerous opinions concerning functions of the stock market such as improving fluid position in the economy, gathering and assembling capital, observing supervisors and applying business control, giving hazard pooling and allocation, and supervision including speculation levels. This paper focuses on, how shareholders, brokers, intermediaries and speculators involve themselves in trading on stock exchange activities. The existing review of the literature indicates that there is a considerable contribution from stock exchanges towards the economic development of the country. The segregation of the market as primary and secondary enhances the capital market instruments. The different capital market instruments are depicted in the present study. It is also focused on, how significantly the capital market instruments try to enhance the development of a country’s economy. The impact of foreign investors and companies towards strengthening of financial assets of the country is also highlighted in the present study