FINANCIAL INNOVATION IN INDIAN CAPITAL MARKET: CONCEPT AND IMPLICATIONS

Commerce

Financial innovation has emerged as life blood of efficient and responsive capital market. The Financial innovation comprises of advances over time in the financial instruments and payment systems used in the lending and borrowing of funds. These changes includes innovations in technology, risk transfer and credit and equity generation, have increased available credit for borrowers and given banks new and less costly ways to raise equity capital, are integral part of financial innovation. The present paper aims to limelight the conceptual framework of financial innovations and also the various innovative financial products that are traded in Indian capital market. The paper also dealt with the implications of financial innovations on financial market. Secondary data is used for this study, which is gathered from various sources such as Research papers, websites, Articles etc. In the end, the paper concludes with that the growth of the financial innovations in the financial sector should be promoted in every possible manner for continued growth and development as these innovation and technologies drives economic growth and economic development of the country, only then it will play an important role in promoting global growth, especially in emerging markets and developing countries like India.

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