Вы находитесь на странице: 1из 1

Steps taken by Indian Government to enhance the Capital Market?

Before talking about the steps taken by Government to strengthen / improve the Capital Market, million dollar question is, what is Capital market?
Page | 1

Ans- Now here is the list of reforms initiated for Capital Market. Anyways, to put this in crude words, Capital market is a place where companies and Governments borrow money from others via Debt (Bonds) or Equity (IPO, Shares) for long term projects. So why would Government want to strengthen this market or facilitate investment here? you can guess the answer! Now whatre the reforms initiated in Capital Market of India? First, the QFIs, are allowed to access Indian Equity Markets, corporate bonds and mutual fund debt schemes. (weve discussed this more than once). Secondly, External Commercial Borrowings (ECB) mechanism has been liberalized to finance Rupee debt of existing power projects. 3. Financial Stability and Development Council (FSDC) has been setup. (already talked about this in the Why Mohan wants Indian Juntaa to be financially educated?) 4. Financial Action Task Force (FATF) has been setup. 5. Permitting two-way fungibility in Indian Depository Receipts 6. Dedicated trading platforms for small and medium scale enterprises 7. Reducing transaction cost in Securities markets. 8. Reduction in the rate of long-term capital gains tax in the case of other non-resident investors, including Private Equity from 20% to 10% on the same lines as applicable to FIIs 9. Providing the levy of Securities Transaction Tax (STT) at the rate of 0.2 per cent on sale of unlisted securities in the course of IPO . 10. Tax exemption to Angel investors investing in in start-up companies 11. Extending the lower rate of withholding tax to funds raised through long term infrastructure bonds in addition to borrowing under a loan agreement 12. Removal of Restriction on Venture Capital Funds to invest only in nine specified sectors 13. Financial Sector Legislative Reforms Commission (FSLRC) 14. Rajiv Gandhi Equity Saving Scheme 15. Mandatory offer of electronic voting facility (for shareholders) 16. Income tax exemption to the Beneficial Owners Protection Fund (BOPF) set up by the Depositories. Epilogue Weve already discussed some of these topics such as QFI, Rajiv Gandhi Equity Saving Schemes, Financial Stability and Development Council etc.

For rest you can google. Ill try to add articles on them, in future but cannot make a commitment like Wanted Salman Khan.

Вам также может понравиться