ABSTRACT
With the implementation of liberalization and globalization policies, the Indian capital market had experienced a paradigm shift in its overall practices and initiatives. There were significant reforms both in the primary and secondary market. Presently, as per the SEBI guideline a corporate entity wants to raise capital from the primary market must go either through initial public offering (IPO), follow-on-public offer (FPO), rights issue, private placement or through euro issue
The Indian capital market has emerged as one of the prominent demand driver for more participation of foreign institutional investors (FIIs) and domestic financial institutions (DFIs). Earlier the middle class investors have little option to put their hard earned money in productive investment avenues. They usually preferred the fixed deposit offered by banks or post office. The traditional investment instruments were hugely popular because they were safe, gave decent returns and were easy to invest in. But today, investors find that traditional instruments are more about wealth preservation than wealth creation, when they are better served by investment alternatives like mutual funds and IPOs
Key Words: capital market, primary and secondary market, initial public offering (IPO), foreign institutional investors (FIIs), traditional instruments
Check for Updates
