Study shows reforms can triple market size by 2020 | business | Hindustan Times
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Study shows reforms can triple market size by 2020

Indian capital markets can grow three-fold by 2020 if reforms to increase retail participation, reduce cost of trade and enhance investment by pension funds are initiated, says a study by industry chamber Ficci and consultant Mckinsey & Co.

business Updated: Apr 18, 2010 20:55 IST

Indian capital markets can grow three-fold by 2020 if reforms to increase retail participation, reduce cost of trade and enhance investment by pension funds are initiated, says a study by industry chamber Ficci and consultant Mckinsey & Co.

“In order to enable Indian capital market to triple in size by 2020, reforms are needed...,” it said, identifying low depth in equity markets, less retail participation, high costs of trade and insignificant participation by pension funds as major challenges for the markets.

Market capitalisation of prime bourses in India was about Rs 8.63 lakh crore as on April 16 while the share trade quantity on NSE was 1.37 crore and on BSE 1.17 crore.

Although faced with challenges, equity capitalisation in India has grown over six fold, and trading value over 3.5 per cent in the last 10 years following regulatory reforms.