Primary Securities Market & Indian Economy:A Study in the Post Liberalization Era

Soumen Das

doi:10.33516/rb.v37i0.201-210p

Authors

Soumen Das Department of Commerce, University of Calcutta

DOI:

https://doi.org/10.33516/rb.v37i0.201-210p

Keywords:

Economic Development, Index of Industrial Production, New Capital Issue, Primary Securities Market, Private Placement.

Abstract

The size and character of primary market has undergone a rapid transformation and expansion since mid-eighties. Before liberalization, resource mobilization from the primary market was low but in the early nineties it gradually increased and major reforms taken place in the primary market after establishment of the Securities and Exchange Board of India (SEBI).

This paper seeks to address the question of whether primary securities market promotes economic growth in an emerging market like India, during the post liberalization era. The study employ annual time series data from 1991-92 to 2011-12, collected from Annual reports of Reserve Bank of India (RBI), various issues of National Stock Exchange of India, annual reports of SEBI.

The empirical result shows that there is a significant positive impact of primary securities market activity on economic development and industrialization.