Impact Evaluation: Developing the Capital Market in India

摘要

There is broad consensus on how an efficient modern stock market should operate,211u001eand the United States is the world leader in this area, regarding both market 211u001eoperations and government regulation. USAID/India was able to tap into this 211u001eexpertise and help transfer it to India. Reform of capital markets is critical to 211u001eIndia's long-term development. Past reliance on government investment and bank 211u001elending has produced poor results. These practices clearly will not provide the 211u001eamounts of resources necessary for rapid future growth, nor allocate them as 211u001eefficiently as a capital market--the 'planning office' for a market economy--can. 211u001eGovernment oversight is critical to developing an efficient stock market, by 211u001erequiring disclosure of relevant financial information, limiting transactions 211u001ecosts for securities trading, and promoting transparency of market operation.