The 'Capital market ' is generally understood as the market long term funds. In its broad sense, it embraces the new issues market and money market also. In this sense both primary and secondary markets are covered.in fact the money and capital market are independent .The main indicator of the state of the capital market is the quantum of new capital issues floated or raised the capital market.in India has exhibited some special feasibility features in recent years .Issues of debentures floatation of mega issues ,fast growth of mutual funds leading to larger mobilisation of saving from the capital market etc. The government has recently permitted the financial institution and companies also to become members of the stock exchanges. The consolidation which the market has undergone is a healthy development, since it reflects investors becoming more choosy and cautious in managing their investment portfolio. This is a welcome development as it indicates greater investor maturity. In South Asia, Indian capital market is the only which is capable of growing into an international center. A step towards this is that we have opened up our closed economy on selective basis. We have to cast our sight to a new global horizon.