Which of the following is NOT the feature of the Indian capital market?

Which of the following is NOT the feature of the Indian capital market? Correct Answer Co-promotes state-level venture funds

The correct option is Co-promotes state-level venture funds.

Co-promotes state-level venture funds is not a feature of Indian capital Market
Important PointsFeatures of Indian Capital Market are as follows:

  • Serves as link between Savers and Investment Opportunities: As money is transferred from savers to risk-taking borrowers on the capital market, it forms an essential link between the saving and investing processes.
  • LongTerm Investment :The ability to put their hard-earned money into long-term investments is beneficial to investors.
  • Helps in Capital Formation :The capital market provides chances for those investors who have extra funds and wish to store them in an investment, so they can benefit from compound interest.
  • Helps Intermediaries: It requires the assistance of intermediaries, such as brokers, banks, etc., to transfer shares and money from one investor to another, aiding them in running their businesses.
  • Rules and Regulations : The government regulates and controls how the capital markets operate, giving it a secure environment for trading.

Additional InformationCapital Market: A capital market is a location where funding instruments like shares, bonds, debentures, debt instruments, and E T Fs can be traded. It is a way to raise money for private citizens, businesses, and governments.

Types of Capital Market

Primary Market:

  • New securities that are launched in the stock market for the first time are primarily dealt with in the primary market.
  • As a result, the fresh issue market is another name for it.
  • The primary market's principal purpose is to make it easier for corporations to transfer newly issued shares to the general public.
  • Financial institutions, banks, H N I, and others are the key investors in this type of market.

Secondary Market:

  • Also known as the stock market, this market serves as the actual venue for the trading of securities.
  • Here, securities are bought and sold.
  • Current investors sell the securities, while new investors acquire the securities.

Related Questions

The question given below consists of a statement, followed by three arguments I, II and III. You have to decide which of the arguments is/are ‘strong’ arguments is/are ‘weak’ arguments and accordingly choose your answer from the alternatives given below each question. Statement: The domestic equity market has become supervolatile  and converted the psychology of every market participant into fear. Greed and fear continue to alternate in the market, like the two sides of a coin. To a seasoned player, there seems to be nothing new as such instances of panic-selling often occur time and again. Why? Arguments: I. Since demonetisation, herd mentality had jacked up financials, banks and NBFC stocks to great heights on the pretext of financial inclusion and formalisation of the economy. This caused the financials gain disproportionate share in Nifty50 at 35 per cent of the free float market capitalisation, which was unheard of in the past.  II. The domestic market seems to be deeply oversold and can rebound on any good news. The Nifty50 has taken long-term support at the three-year trend line, which makes a case for the correction to near its end. III. Investors, therefore, should not panic and sell off shares. Instead they should do the reverse and gather the courage to pump in more money into the market by picking quality stocks or investing in ETFs for more stable returns.