A Capital market is a market for securities (Dept or equity), where business Enterprises (companies) and government can raise their long term funds. it is defined as a market in which money is provided for period longer than a year, as the raising of short term fund take place on other markets (example :-the money market) The capital market include the stock market (equity securities) and the bond market (Dept)
The capital market has three component - the equity market, the Dept market and derivative market. it consists of all those connected with issuing and trading in equity shares and also medium and long term debt instruments, namely bonds and debentures. it is well accepted that the tenure less than 1 year are considered as short term; while tenure more than 1 year and up to 3 years may be taken as medium term while more than 3 year can be considered as long term. Both equity and debt market have 2 segments- the primary market dealing with the new issue of of equity and debt instruments and the secondary market which facilitates trading in equity and Dept instrument thereby imparting liquidity to the instruments and making it possible for the people with the different liquidity preferences to participate in the market.
The Capital Market operations are regulated by the security exchange Board of India SEBI
Regulatory Authorities in India
Money Market :-RBI
Capital Market :- SEBI
Telecom Industry :- TRAI
IT Sector :- NASSCOM
Pension Fund:- PFRDA
Insurance Industry:- IRDA
