Capital Market

Reforms in Indian Capital Markets Ever since the Indian scrimping was l beralized in the early 90s, India has seen a tremendous harvest of its capital merchandises with close to 5,000 Initial Public Offerings (IPOs), second lonesome(prenominal) to the United States. Although the amount of capital brocaded during the period whitethorn create been lower as compared to that of the developed beingness and former(a) BRIC nations, Indian companies have s savings bank managed to attract capital from the world over. In the monetary social class of 2008, India saw the greatest year in Indian capital markets when the total capital raised went northwards of US$9 billion. However, the following years have not been very promising. Notwithstanding the impact of the world-wide financial crisis, Indian capital markets have not been able to gybe the festering story witnessed ever since the liberalization of the economy till 2008. In the preceding financial year 2010, while India ranked 4th with respect to the amount of capital raised, contributing to 3.7% of international IPO share, china (which also includes Hong Kong) contributed to almost 47% of the global capital raised in IPOs.

(Source: Global IPO Trends 2011, published by Ernst and Young) The above statistics provide an interesting insight into the fruit trajectory of the Indian capital markets and its future role in the financial world. From 2008 to 2010, the amount raised by IPOs in China increased by 250%, but in India, there was no substantial increase. (Source: Global IPO Trends 2011, published by Ernst and Young). The written material on the wall seems to indicate that the Indian capital markets is losing its growth momentum in the post-crisis financial world and that China is increasingly becoming popular with respect to attracting foreign capital. Possible Reasons for overtaking in Momentum Pricing: Many capital market experts have blamed the aggressive pricing of IPOs as a major reason for the loss in momentum in the primary market space. The Indian primary market has not yielded favorable returns... If you want to get a full essay, disposition it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper