Impact of Capital Market Reforms on Indian Stock Market–Pre and Post Globalisation Era

Abstract

This paper discusses about the Indian capital market reforms and its relationship with the Indian stock market is of great significance from the point of view of growth and development of the Indian economy. Pre-globalization capital market reforms did not have major positive impacts on the volatility, liquidity and various other economic indicators of the stock market. However, the post- globalization reforms led to a marked improvement for the stock market development which has led to the economic growth in India and the relationship between them have proved to be long term as well as beneficial to the Indian economy. The paper aims to identify all the capital market reforms since globalization (1991) in India and seeks to determine the impact of these reforms and the direction of the impact of these reforms (viz. positive or negative) on the efficiency, volatility, liquidity and market capitalization in context to the Indian stock market.