ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Changing Scenario

Industrial Finance and Capital Market

Given the current state of the financial institutions and banks, it will take many years before they are integrated into the capital market framework thus bridging the artificial gulf that exists today between the two. The basic function of financial institutions and banks and the financial/capital markets is to facilitate the transfer of funds from the surplus to the deficit pockets. The main thrust of policy now should be to create seamless linkages between DFIs/banks and capital markets to facilitate this process of transfer from the ultimate savers to the ultimate users at minimum cost. Such a policy should also ensure a neutral stance towards banks and the capital markets thus making for an environment where there is efficient resource allocation as well as a certain discipline among users of funds.



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