This article evaluates the impact of financial liberalisation on the growth, development and efficiency of the Indian stock market vis-Ã -vis other select Asian markets. Though the expansion of the Indian stock market in the post-liberalisation period is truly impressive, in terms of quality there has been a regress. Trading has become increasingly concentrated in some sectors and companies, and the higher volatility in the market, without a corresponding higher return, portends greater risk and more instability for investors.
