Definition of Present Scenario

Conservatism to Dynamism

The liberalization of financial sector has built the revolutionary changes in the Indian financial system. This reform is made to bring an efficient, competitive and diversified financial system in the country. Present trend of Indian financial services sector is moving towards dynamism.

Emergence of Primary Equity Market

Raising finance through capital market is the major phenomena. Indian primary markets have become very active since the entrance of the private sectors in the financial services industry.

Concept of Credit Rating

The debt instruments are rated by Credit rating agencies. It helps the investors in finding a profitable and safe debt investment. The rating symbols indicate safety and risk of the instruments. Now-a-days, rating service is extended to equity securities also, which helps the investors to cautiously invest their savings.

Process of Globalization

The entry of innovative and sophisticated financial products is possible in our country due to globalization. The obstacles in Indian financial sector are slowly eliminated by the Government of India. It paves the way for introducing innovative financial products.

Process of liberalization

The financial services reform is initiated by Government of India. Reformation is made in the mode of liberalization activities like deregulation of interest rate, privatization of banking and mutual fund sectors and amendment of companies act, MRTP act, Income tax act etc.