Module 25: Reforms in Indian Capital Market

The capital market reforms were initiated in 1991, as part of the structural reforms comprising industrial deregulation, privatization, globalization, and financial reforms through liberalisation of domestic economic policies and foreign exchange policies. It involved abolition of Capital Issues Control Act, 1955, setting up of SEBI and introduction of new instruments. A number of initiatives have been undertaken by the Government which broadly aim to sustain the confidence of investors (both domestic and foreign) in the country's capital market. The Indian capital market has also been opened up to foreign capital.