The Indian capital market is a crucial component of the country's financial system, playing a vital role in the mobilization of resources and allocation of capital for economic growth and development. It provides a platform for raising capital through equity and debt instruments, enabling companies to fund their expansion and operations while offering investors opportunities for investment and wealth creation. The capital market in India is broadly divided into the primary market, where new securities are issued and sold, and the secondary market, where existing securities are traded among investors.

Over the years, the Indian capital market has evolved significantly, driven by regulatory reforms, technological advancements, and increasing participation from domestic and foreign investors. Key institutions such as the Securities and Exchange Board of India (SEBI), established in 1992, play a pivotal role in regulating and promoting the orderly growth of the market, ensuring transparency, protecting investor interests, and maintaining market integrity.

The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) are the primary stock exchanges in India, facilitating the trading of a wide range of financial instruments, including stocks, bonds, derivatives, and mutual funds. The Indian capital market has also witnessed the emergence of innovative financial products and investment avenues, such as exchange-traded funds (ETFs), real estate investment trusts (REITs), and infrastructure investment trusts (InvITs), catering to the diverse needs of investors.

With a robust regulatory framework, growing investor base, and increasing integration with global financial markets, the Indian capital market continues to play a pivotal role in the country's economic development and offers significant opportunities for both issuers and investors.

It is organized to facilitate the efficient mobilization and allocation of resources, ensuring that capital flows from investors to businesses and government entities that need funding. The Indian capital market is divided into two main segments: the primary market and the secondary market.

Primary Market

The primary market, also known as the new issue market, is where new securities are issued and sold for the first time. This segment includes: