Which development bank assists in the growth of capital markets in Ind...
The Industrial Development Bank of India (IDBI) assists in the growth of capital markets in India. It invests in equity shares, debentures, and mutual funds of various companies listed in India, contributing to the overall development of the capital market.
Which development bank assists in the growth of capital markets in Ind...
Overview of the Industrial Development Bank of India (IDBI)
The Industrial Development Bank of India (IDBI) plays a crucial role in enhancing the capital markets in India. Established in 1964, IDBI was initially set up to provide credit and support for the growth of industries, but it has since evolved to focus on a broader range of financial services.
Key Functions of IDBI in Capital Market Growth
- Financial Assistance: IDBI provides long-term and short-term financial assistance to various sectors, which helps stimulate investment in the capital markets.
- Promotion of Industrial Equity: IDBI actively promotes industrial equity by underwriting new issues and enhancing the participation of institutional investors in the capital markets.
- Development of Financial Institutions: The bank has been instrumental in establishing several financial institutions that contribute to the development of capital markets, thereby facilitating easier access to finance for businesses.
- Expertise in Project Financing: IDBI has developed expertise in project financing, which helps in evaluating and funding viable projects, thereby boosting investor confidence in the capital markets.
Conclusion
Overall, IDBI's multi-faceted approach to financing, developing financial institutions, and promoting equity participation significantly contributes to the growth and stability of capital markets in India, making it a pivotal player in this domain.