1. Importance of Capital Market. When they work well, democratic governments make laws to protect people from harmful things that they cannot prevent on their own. Objectives of Capital Market 3. Lets look at some of the importance of capital market in economy. An agency has quasi-legislative functions, executive functions, and judicial functions. In order to understand the Meaning of Market the market function is an important issue to delve into. Definition of Capital Market: Capital market is an organised market mecha­nism for effective and efficient transfer of money capital or financial resources from the investing class to the entrepreneur class in the private and public sectors of the economy. The system consists of savers, intermediaries, instruments and the ultimate user of funds. If you own a business, you probably know it is subject to a cornucopia of laws. Link between Savers and Investors: The net effects of the experience of market-based policies and deregulation surely has been and will continue to be positive. Capital market plays an important role in mobilising resources, and diverting them in productive channels. misconduct and in supervision of markets and market intermediaries; and • To exchange in formation at both global and regional levels on their respective experiences in order to assist the development of markets, strengthen market infrastructure and implement appropriate regulation. Functions. The year 1933 saw two important pieces of legislation pass through Congress. It is only with the help of capital market, long-term funds are raised by the business community. A financial system is a network of financial institutions, financial markets, financial instruments and financial services to facilitate the transfer of funds. The Role of Regulatory Agencies. In this way, it facilitates and promotes the process of economic growth in the country. Market Functions. Various functions and significance of capital market are discussed below: 1. The market function is there so that the satisfaction of the buyers and sellers during a transaction can be ensured.. Importance 4. The Glass-Steagall Act was established to keep banks from tying themselves up in the stock market … Robert Kolb, author of the book "Lessons from the Financial Crisis," is one of many who purport the mortgage meltdown of 2008 was largely because of the government's lack of oversight. Definition of Capital Market 2. The level of economic growth largely depends upon and is facilitated by the state of financial system prevailing in the economy. The place can be a market place or a street market. 2. The functions and regulations of financial institutions have changed since our most recent recession and will likely continue to be governed at a higher level going forward. 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