Capital Market
The capital market plays an important role in mobilising the savings and diverting them in productive investment. It is a medium of transferring the financial resources from surplus and wasteful areas to deficit and productive areas meaning transfer of money or capital from those who have surplus money to those who are in need of investment thus increasing the productivity and prosperity of the country.
It deals in long-term loans. It supplies industry with fixed and working capital and finances medium-term and long-term borrowings of the central, state and local governments. The common instruments used in capital market are shares, debentures, bonds, mutual funds, public deposits etc. The funds which flow into the capital market come from individuals who have savings to invest, the merchant banks, the commercial banks and non-bank financial intermediaries, such as insurance companies, finance houses, unit trusts, investment trusts, venture capital, leasing finance, mutual funds, building societies, etc.
The capital market functions through the stock exchange. A stock exchange is a market which facilitates buying and selling of shares, stocks, bonds, securities and debentures. It is not only a market for old securities and shares but also for new issues of shares and securities. In fact, the capital market is related to the supply and demand for new capital, and the stock exchange facilitates such transactions.
Funds flow into the capital market from individuals and financial intermediaries which are absorbed by commerce, industry and government. It thus facilitates the movement of stream of capital to be used more productively and profitability to increases the national income. It prides incentives to savers in the form of interest, dividend or bonus and transfers funds to investors, thus leading to capital formation.
The capital market encourages economic growth by leading to the development of commerce and industry through the private and public sector. In an underdeveloped country where capital is scarce, the absence of a developed capital market is a greater hindrance to capital formation and economic growth.
Indian Business News
Tuesday September 28, 2021
At least 20 Chinese provinces and regions making up more than 66 per cent of the country's gross domestic product have announced some form of power cuts, mostly targeted at heavy industrial users
Tuesday September 28, 2021
OPEC says that more electric vehicles on the road and the push for alternative and renewable energy will indeed usher in an era of declining demand for oil in rich countries
Tuesday September 28, 2021
Natural gas and coal prices rally to record peaks as traders brace for winter crunch
Tuesday September 28, 2021
Aditya Birla AMC is looking at valuations of Rs 20,500 cr in its IPO-the fourth by a domestic mutual fund house
Tuesday September 28, 2021
Holdings of the SPDR Gold Trust fell 0.3 per cent to 990.32 on Monday
Tuesday September 28, 2021
Tuesday September 28, 2021
Analysts said investors were booking profits in IT stocks after they gave good returns this year
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
Markets regulator Sebi has decided to tweak the criteria for determining 'Fit and Proper Person' and given its approval for the launch of silver exchange-traded funds (ETFs) in the country
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
According to Sebi rules, EGRs will be issued in lieu of physical gold stored in registered vaults
Tuesday September 28, 2021
Experts say that precious metals such as silver, platinum and palladium can be a way to diversify one’s portfolio, away from a single precious metal
Tuesday September 28, 2021
Tuesday September 28, 2021
Zee is witnessing a battle between its largest shareholder and the original promoters
Tuesday September 28, 2021
Markets regulator Sebi on Tuesday decided on a framework for the social stock exchange for fund raising by social enterprises.
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
Related party transactions' rules tightened to prevent abuse; startup founders get more leeway to retain control
Tuesday September 28, 2021
The RBI withdrew liquidity through its 7-day variable rate reverse repo at 3.99%. That’s 57 basis points higher than the previous auction and just a shade lower than the benchmark policy rate of 4%.
Tuesday September 28, 2021
Tuesday September 28, 2021
IPO also has OFS component; proceeds from fresh issuance will be used for setting up 2 Gw solar cell unit and 1 Gw solar PV module plant
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
BSE Sensex bounced back after hitting a low of 59,045 in intra-day deals to finally settle at 59,668, down 410 points
Tuesday September 28, 2021
The euro was down 0.1% versus the dollar at $1.1686.
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
Tuesday September 28, 2021
The instruments representing gold will be called Electronic Gold Receipts (EGRs) and will be notified as securities; Sebi board also approves proposal to amend delisting framework after open offer
Tuesday September 28, 2021
In the Nifty 50 index, 19 stocks ended in the green, while 30 stocks closed in the red in today's trade.
Tuesday September 28, 2021
Tuesday September 28, 2021
The 30-share BSE Sensex closed down 410.28 points at 59667.6
Tuesday September 28, 2021
Tuesday September 28, 2021
In the Nifty pack, 19 stocks closed in the green, while 30 stocks ended in the red.
Tuesday September 28, 2021
The Nifty Bank index closed 0.59 per cent down at 37945.0.
Tuesday September 28, 2021
In the Nifty50 index, 19 stocks closed in the green, while 30 stocks ended in the red.
Tuesday September 28, 2021
The NSE Nifty index closed 106.5 points down at 17748.6
Tuesday September 28, 2021
The 30-share BSE Sensex closed down 410.28 points at 59667.6
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