Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
5. Write a short note on various measures taken to reform capital markets. What are the current issues in the capital market of the country? Suggest possible reforms for the same. (250 words)
Difficulty level: Moderate
Reference: Insights on India
Why the question:
The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2023 (Revision) Secure timetable.
Key Demand of the question:
To write about capital market reforms, present issues and possible solutions to them.
Structure of the answer:
Introduction:
Begin by giving context about the capital markets.
Body:
First, in brief, write about the importance of capital market in the country’s economy.
Next, write about various measures taken in the past to reform the capital markets – The Narasimham Committee (1991), SEBI, Credit Rating etc.
Next, write about the present issues in the capital market in the country and suggest possible measures to resolve them.
Conclusion:
Conclude with a way forward.
