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Abstract
The evolution of capital market for formal trading can be traced back to 1861 i.e. during the period of American Civil War. Several companies came to formal existence during this period, which were into the business of exports to the United Kingdom and the United States of America. This triggered need for formal banking system as an outcome good number of banks came into existence creating formal financial system in their respective economies, undertaking various financial transactions for their clients/customers across their trading continents. These financial institutions were commonly registered under the British Companies Act. With the onset of globalization and the subsequent policy reforms, significant improvements have been made in the area of securities market in India. Dematerialization of shares was one of the revolutionary steps that the government implemented. This led to faster and cheaper transactions, and increased the volumes traded by many folds. The adoption of the market-oriented economic policies and online trading facility transformed Indian equity markets from a broker-regulated market to a mass market. This boosted the sentiment of investors in and outside India and elevated the Indian equity markets to the standards of the major global equity markets.