After a busy start to the year, capital markets saw a substantial slowdown in the second half of 2018, though SEBI continued to play a significant role in improving the regulatory framework and encouraging a stable and safe capital markets regime India. This update summarises some of the key developments in the past year and gives a brief overview of what can be expected in 2019.

THE YEAR THAT WAS

The year 2018 was an eventful year for the Indian capital markets. The first half of the year saw the primary markets maintain its momentum from last year with growth in volume of funds raised as well as transactions. Companies that came out of initial public offerings (IPOs) in 2018 include Bandhan Bank, Hindustan Aeronautics, ICICI Securities, HDFC AMC etc.

The second half of the year, on the other hand, witnessed a substantial slowdown in capital markets transactions due to a number of factors including changes in the economic scenario of the country, financial scams such as the Nirav Modi fraud case, state assembly election results, regulatory changes, external factors such as US- China trade war and fluctuating crude oil prices.

Nevertheless, even in turbulent times, Indian capital markets have often emerged as stable, safe and sustainable of all emerging markets. In this regard Securities and Exchange Board of India (SEBI) has played an important role in building a strong and robust capital markets and has made strides towards strengthening and improving the regulatory framework, which is likely to have a positive impact.

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