• UGI USER
  • Jul 19, 2024
  • 6 Likes
  • 0 Comments

“INDIA’S CAPITAL MARKET SURGE AND POLICY FOCUS”

Why in the news?

  • Demat accounts have surged from 40 million in 2020 to 160 million today, driven by easy digital onboarding during the COVID-19 pandemic.
  • Monthly new investor accounts rose from 300,000 to 4 million, with 4.2 million new accounts opened last month.
  • Emphasis on smooth tax processes rather than tax breaks to remove bureaucratic hurdles and enhance market efficiency.
source:scribd

Key points:Capital Market

  • Capital Market: Includes equity (stock) and debt (bond) markets; regulated by RBI for government securities and SEBI for corporate debt.
  • Primary Market:
  • Issues new securities.
  • Directly raises capital from savers.
  • Creates financial assets.
  • No secondary trading; prices set by issuers.
  • Secondary Market:
  • Trades existing securities.
  • Enhances liquidity.
  • Both buying and selling occur.
  • Prices based on demand and supply.
About Market Capitalisation:

  • Total company value on the stock market; calculated by multiplying shares by the current share price.
  • Formula: Market Capitalisation = Total number of outstanding shares × Current market price per share.

SEBI Classification:

  • Large Cap: Top 1-100 by market cap.
  • Mid Cap: Rank 101-250.
  • Small Cap: Beyond rank 250.

Associated Article:

https://universalinstitutions.com/10254-2/