The market function is there so that the satisfaction of the buyers and sellers during a transaction can be ensured.. Various functions and significance of capital market are discussed below: 1. A financial system is a network of financial institutions, financial markets, financial instruments and financial services to facilitate the transfer of funds. The place can be a market place or a street market. The long-term funds or fixed capital are raised by companies by the issue of shares, debentures and bonds in the capital market. The level of economic growth largely depends upon and is facilitated by the state of financial system prevailing in the economy. Importance 4. When they work well, democratic governments make laws to protect people from harmful things that they cannot prevent on their own. The year 1933 saw two important pieces of legislation pass through Congress. Regulation, however, is sometimes insufficient in preventing a financial market crash. The system consists of savers, intermediaries, instruments and the ultimate user of funds. 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. Objectives of Capital Market 3. Functions. 21 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. In order to understand the Meaning of Market the market function is an important issue to delve into. Importance of Capital Market. The Glass-Steagall Act was established to keep banks from tying themselves up in the stock market … Definition of Capital Market 2. Link between Savers and Investors: Capital market plays an important role in mobilising resources, and diverting them in productive channels. 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. Market Functions. It is only with the help of capital market, long-term funds are raised by the business community. An agency has quasi-legislative functions, executive functions, and judicial functions. The net effects of the experience of market-based policies and deregulation surely has been and will continue to be positive. 1. Lets look at some of the importance of capital market in economy. The Role of Regulatory Agencies. In this way, it facilitates and promotes the process of economic growth in the country. 2. 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