Capital Markets-Overview

Abstract

It looks like the global uncertain ty a nd even thedisturbing political env ironm e nt for some timenow cannot deter India from its growth trajectoryas the grown up Financial system in the Country inall probability ha s resilience against all odds.Capita l market is an engine of grow th and is aca t alys t for Capi tal forma tion in a Country. The GDPgrow th of a Country is directly linked to a robustCapi tal Market. The Country n ee ds 1 trillion US$ inthe ne xt five years for various infrastructure projects.It mean s that the Market will grow further with strongstrides though it ha s already grown in a big way sincethe liberalisa tion policies were announced in 1991.Broadl y there is a Financial market with twosegments - (i) Capital market (ii) Money market.While Capital Market deals with lon g te rm mark etinstruments, Money market deals with s hort te rminstruments (maturity period o fl ess than 12 months) .Though an in s trum ent that ha s maturit y pe riod ofm ore than 12 months is dealt with in a C api tal market,Instruments with maturity period over 4-5 years willbe id eal for a Capital Market