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Reforming capital markets is an ongoing process, and it requires collaboration between market participants, regulators, and the government to ensure efficient and transparent financial markets that attract both domestic and foreign investment. Examine.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

3. Reforming capital markets is an ongoing process, and it requires collaboration between market participants, regulators, and the government to ensure efficient and transparent financial markets that attract both domestic and foreign investment. Examine. (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-2024 Secure timetable.

Key Demand of the question:

To write about capital market reforms, present issues and possible reforms and 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.