Ifs

Growth Of Indian Financial System After independence the mixed economy theory was adopted for the growth of the financial system and also for fulfilling socioeconomic & political objectives. Following were the significant changes that took place after independence: 1. The govt. started creating new financial institutions to supply finance both for agriculture & industrial development. 2. A number of other institutions also participated in industrial financing by mobilizing public savings through introduction of insurance schemes and mutual funds. 3. In order to promote industries in the state, various SIDC were established to promote medium scale industrial units. 4. The financial system was focusing more towards the development of capital market after the entry of private sector was allowed into banking and insurance sector. 5. The secondary market was strengthen with the establishment of various regional stock exchanges in different parts of the country. 6. With the development of the various credit rating agencies it has provided a lot of help to the investors to make decisions of their investments in different instruments and also protect them from risky ventures. 7. With the increase in the size and number of financial institutions it has led to considerable increase in the financial instruments, which thereby helps to meet the diversified needs of the investors. 8. The international capital market needs are catered with the introduction of more transparency in the trading and settlement practices in the various stock exchanges. 9. One of the most significant developments in the Indian financial system is the introduction of derivative trading which includes stock, interest, futures and options.