The Indian capital market: Growth with governance*

This joint study paper released by PricewaterhouseCoopers (PwC) and ASSOCHAM, charts the journey of the Indian capital market from the pre-reform era to the liberalised market of this decade. The study is based on secondary research and internal insights and explores the course of the Indian capital market, primarily under various contexts which include the impact of the global of financial meltdown on the Indian economy, prudent usage of financial products to ensure that they do not snowball into an economic catastrophe, and evolving derivative trading in India. The study also explores the Indian debt capital market which has many advantages like diversification opportunities, efficiency in managing cost of capital and financial stability.

It alludes to the coming of age of the governance structure in India, its past pitfalls and its present strength. The report emphasises the importance of SEBI, as the supreme regulator of the Indian capital market, and the various steps taken by SEBI to maintain investor confidence in the market. The paper states that while, India has achieved the desired acceptability on the global map, however the change must continue, to address the challenges of modern day, newer products needs to be introduced to ensure that innovation continues, while ensuring market best practices to take Indian capital markets to the next level of globalisation. The imperative need to bring forward 2nd generation financial sector reforms will propel the Indian capital markets to possibly double digit GDP growth.

 

 The Indian capital market: Growth with governance*