The Importance of the Capital Market in Strengthening the Indian Financial System

Abstract

The financial system is significantly reliant on capital markets. Capitalism functions exclusively through the capital market. The structure of the Indian stock market has undergone significant changes since its inception. The stock market has been transformed by the ongoing developments in the Indian capital market, particularly the secondary market. These enhancements facilitate the integration of contemporary technology and internet commerce. Investments, loans, and deposits may accumulate currency in the presence of a robust financial framework. It is important to note that this system is composed of interdependent subsystems. The objective of this research is to ascertain the significance and functions of the capital market in the production of capital, as well as the efficiency of the Indian financial system.