Despite a seemingly high rate, India faced a severe shortage of investible resources. By early 1990’s it was recognized that it is crucial to raise funds from abroad to fill the gap. Financial sector reforms were needed to remedy the structural weakness and inefficiencies in the stock markets, primary markets, banking and insurance sectors. Reforms were required in order to boost investor confidence and broaden the investor base. The Indian corporate sector demanded these reforms in order to reduce th

The BSE, which was the premier stock exchange at that point in time, was not enthusiastic to these proposals, and as a result without its support the NSMS did not take off. The BSE continued to exploit its preeminent position in the Indian stock markets. As might be expected, BSE also took little steps to put its own house in order. BSE operators opposed regulator’s strictures tooth and nail. They resorted to lawsuits and strikes. Another development at this juncture was the mushrooming of illegal stock exchanges all over the country.

2] Access of foreign institutional investors (FIIs) and non-resident Indians to Indian capital and stock markets.

Recent changes in the Indian stock market:

The major measures recommended by the Narasimhan committee and the Pherwani committee set up to study the implementation of possible measures to strengthen the Indian financial sector, were:

6] Electronic transfer of funds and scrip less trading,

e cost of capital and to enhance its competitiveness. The government seriously deliberated about these reforms in order to facilitate participation by foreign institutions and corporates.

The NSE has transformed the Indian stock markets in several ways. First, it has brought about increased transparency to the Indian stock market. Secondly, it has built up a more efficient settlement and deliver

Some topics in this essay:
NSMS BSE, Exchange NSE, NSE India, FI FII, System NSMS, Stock Exchange, Trading System, stock exchange, Empowerment SEBI, Harshad Kamat, indian stock, stock market, Exchange BSE, stock markets, national stock, indian stock markets, indian stock market, financial sector, national stock exchange, stock exchanges, settlement cycle, changes indian, transformed indian stock, bse premier, bombay stock exchange,