Published Paper Details:

Stock markets which function effectively fosters growth of the economy and development of the economy by promoting the channelization and mobilization of financial resources and by integrating those with the need of funds to bring up innovation and to achieve growth, with those who have resources to invest. This function of the stock market is being carried in a regulated environment ,along with secure and transparent trading platforms that also fosters transparent trade by securing the rights of investors and educating their employees to ensure good governance by providing all the information to the investors on timely basis. The NSDL and CDSL along with several depository participants play a major role to facilitate trade. However, despite playing a major role in the economy, the link between stock exchanges and the development of economy is not commonly understood and accepted. A prominent view in this regard is that when the stock markets develop it has a positive impact on the economy. The capital formation in an economy is the direct impact of efficiency in stock market and its development. Capital is required to produce goods and services and thereby leading to overall growth. Due to a predisposition that stock markets harm economic development due to the existence of volatility some theorists believe there is no link between stock markets and economic development. The objective of this study is to review literature and find whether there is a relationship between capital market development and economic development in Indian economy.