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[Economy] 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?
Ans- already explained in my earlier articles. 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 (already talked about this).
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.

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