Recent Development in Capital Market

Depositories for share custody (denationalization of shares). ; Internet trading (e- broking). BASE has a nation-wide reach with a presence in more than 450 cities and towns of India. BASE has always been at par with the international standards. It is the first exchange in India and the second in the world to obtain an ISO 9001 :2000 certifications. The equity market capitalization of the companies listed on the BASE was IIS$I . 63 trillion as of December 2010, making it the 4th largest stock exchange in Asia and the 8th largest in the world.

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The BASE has the largest number of listed companies in the world. As of June 2011, there are over 5,085 listed Indian companies and over 8,196 scrip on the stock exchange, the Bombay Stock Exchange has a significant trading volume. Though many other exchanges exist, BASE and the National Stock Exchange of India count for the majority of the equity trading in India. National Stock Exchange (NOSE) : With the liberalizing of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards.

On the basis of the recommendations of high powered Permian Committee, the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India Prices of stocks are determined by the net earnings of a company. It depends on how much profit, the company is likely to make in the long run or the near future. If it is reckoned that a company is likely to do well in the years to come, the stock prices of the company will escalate. On the other hand, if it is observed from trends that the company may not do well in the long run, the stock prices will not be high.

In other words, the prices of stocks are directly proportional to the performance of the company. In the event when inflation increases, the company earnings (worth) will also subside. This will adversely affect the stock prices and eventually the returns. Len a nut shell, for the economy to flourish, inflation and stock market ought to be more conforming and predictable. A report released by PricewaterhouseCoopers (PWS) and SCHEMAS, charts the journey of the Indian capital market from the pre-reform era to the liberalized market of this decade.

The report emphasis the importance of SIB, as the supreme regulator of the Indian capital market, and the various steps taken by SIB to maintain investor confidence in the market. The report 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 globalization.