Page 289 - DECO502_INDIAN_ECONOMIC_POLICY_ENGLISH

Unit 21: Capital Market in India and Working of SEBI

• In recent years, mutual funds are the most important among the newer capital market institutions. Notes
Several public sector banks and financial institutions have set up mutual funds on a tax-exempt
basis, virtually on the same footing as Unit Trust of India (UTI).
• Venture capital financing is one of the more recent entrants into the capital market. There is
significant scope for them in the context of emergence of technocrat entrepreneurs who have
technical competence and expertise but lack venture capital. Financial institutions generally
insist on greater promoter contribution to investment financing, in which case, the technorcrat
entrepreneurs need the support of venture capital companies.
21.7 Key-Words

1. Urban infrastructure : Infrastructure is the basic physical and organizational structures needed
for the operation of a society or enterprise, or the services.
2. Monopoly : The exclusive possession, control, or exercise of something: "men don't
have a monopoly on unrequited love".
21.8 Review Questions

1. What do you mean by the term Indian Capital Market? Discuss.
2. Discuss the features of the Indian Money.
3. Explain the reform of the Indian Money Market.
4. Write a short note on the Monetary Policy of India.
5. What are the objectives of Monetary Policy?
Answers: Self-Assessment

1. (i) SEBI (Securities and Exchange Board of India)
(ii) False (iii) Shares (iv) Dividend
(v) Long-term (vi) Sensex (vii) Retail investor
21.9 Further Readings

1. The Indian Economy; S.K. Ray; Prentic, Hall of India Private Limited
New Delhi - 110001.
2. Indian Economy; Gaurav Datt and Aswani Mahajan; S. Chand and Company
LTD. Ram Nagar, New Delhi-110055.

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