Authors: Bindu Tripati Assistant Professor, Lata Kushwaha
Abstract: Financial markets and institutions are the foundation of every modern economy, facilitating the efficient allocation of financial resources from savers to borrowers. They promote capital formation, economic development, financial inclusion, and investment opportunities while ensuring liquidity and risk management. In India, financial markets have undergone significant transformation due to economic liberalization, technological advancements, regulatory reforms, and digital financial services. This study examines the structure, functions, major participants, regulatory framework, challenges, and future prospects of financial markets and institutions in India. The research is based on secondary data collected from reports of the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), journals, books, and government publications. The study concludes that India's financial system has become more transparent, efficient, and technology-driven, although challenges such as cyber risk, market volatility, financial literacy, and regulatory compliance remain.
