Indian Financial System and Capital Market an Overview

Financial activities in the world are fast changing and the borders are widening beyond imagination.  The early form of banking, say, the goldsmith banking, took leap to present day online banking.  In the changing scenario, the definition of banking is also to be revised thoroughly and to be either shortened or widened to suit the present day circumstance. Capital Market, on a wider range, is primarily of two types – primary market and secondary market.  As the very names suggest, primary market is there to subscribe to the IPOs or direct public offers made by the companies from time to time by issuing shares or other instruments of finance.  This is, in other words, direct subscription to the capital/ instrument issues.  Secondary market is a reference, colloquially speaking, to the second hand market i.e., purchase and sale of shares other than by direct subscription.  Stock markets, stock exchanges and other media come under this fold