Basic Ideas to Increase the Capital Market of India

The last century has ushered in an enormous growth of world economies, and with this has also come a growth of interaction with the rest of the world.  In reference to the Indian capital market, since 1991 the market has been closely linked to global events and it has come a long way, although it still has many miles to go.  Here are some basic ideas to increase the capital market of India:

Transparency

There have been many structural and technological reforms which have assisted the market in growing and expanding.  Due to these and other improvements the financial sector in India has undergone a huge change.  Regulators like SEBI, IRDA, and RBI have done a great job safeguarding the interest of shareholders, in particularly the retail investors.  As a result of all this, transparency in the entire financial system, and thus the Indian stock market as well,has greatly improved.  This is necessary for a better understanding of the Indian capital market by foreign countries and must continue.

Also, SEBI took on a major role in controlling and stabilizing the market so that it could grow in a healthy manner, and the result was that the market  and the stock market have begun receiving a great deal of patronage from investors around the world, such as the United States.

Mutual Fund Industry

The Indian Mutual Fund Industry has changed enormously in recent years by making available low cost or differentiated products to clients.  In order to help shore up the economy and generate future growth the industry must focus on better communications of performance, greater financial awareness, and should also utilize simplified and common KYC processes.

While it is a fact that the global financial meltdown has taken its toll on the domestic market, but the economy is not down and out yet.  It still continues displaying positive signs.  The stimulus the finance minister placed in the budget intended to help reduce the fiscal deficit will be of great assistance to the economy struggling to gain back its growth rate of 8%, and thus the Indian capital market should see swifter growth than it has in the past.

Of course none of this is guaranteed.  Unexpected situations come up every day in the global market and anything could occur to derail expectations.  But as of right now there is still plenty of light at the end of the tunnel for India's financial market.

Jake Hyet is a professional writer about the stock market and the global financial market.  He is considered an expert on the Indian Stock Market and the capital market.