Capital Market is one of the important aspects of all financial markets. Therefore, it is necessary to study its correct meaning. In general the capital market is a market for financial assets that have a long term or permanent. Unlike money market instruments instrument the capital markets mature for longer than one year. It is an institutional arrangement to borrow and lend money for a longer period of time. It consists of financial institutions like IDBI, ICICI, UTI, LIC, etc. These institutions play the role of lenders in the financial market. Business units and corporate borrowers are in the capital market. Involves various capital market instruments that can be used for financial transactions. Capital market provides long-term debt and equity for the government and the private sector. Capital market can be classified into primary and secondary markets. The primary market is the market of new shares, while on the secondary market for existing securities are traded. Institutions of the capital market loans in rupees, foreign currency loans, advisory services and underwriting.
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