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  • Writer's pictureNLR Journal


Poorvi Priyadarsani Parida, KIIT Law School


Major reforms were observed in Indian Capital Market in during 1990. Several steps were taken for modernising and developing the working structure of stock exchange. From establishment of Security Exchange Board of India to setting up of credit agencies followed by growth of derivative transactions. Foreign Investment Policies in India has always played a pivotal role in developing economic growth as well as providing immense opportunities to every individual. It has always been observed that the main source of Industrialization and development in modern tools are because of Foreign Institutions.

Since 1947 it is the Foreign Investment Policies that subjugate the Capital market in India. Post- Liberalization there were several changes observed in ownership, majorly the institutional investors increased their holding in private sector management that control companies’ segment. Corporate ownership in India is concentrated in the hands of domestic individuals, multinational parents or promoters’ group.

Towards the end of 1980’s India was facing a Balance of Payment crisis due to unsustainable borrowing and high expenditure. Balance of Payment includes the current market, the capital market and the financial market. The Balance of payment crisis threatened the International credibility of the country. The aim of this Research Paper is to understand the concept of capital market reforms and the various changes in ownership structure after liberalization.

Key Words- Liberalization, Foreign Institutions, Capital market, Credit agencies, Ownership.


Journal Details
Abbreviation: NLR 

ISSN:   2582-8479 (O)

Year of Starting: 2020

Place: New Delhi, India

Accessibility: Open Access

Peer Reviewer: Double Blind



​All research articles published in NLR and are fully open access. i.e. immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution, and reproduction in any medium provided the original work is properly cited.

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