There is a thriving market for public issues in India. The instruments commonly offered are equity, debentures, and a variety of convertibles including debentures bundled with warrants. Public issues are made by both private and public sector companies. Every month roughly 130 issues take place. Unlike many other countries, where issues are privately placed, public issues in India are directly marketed to retail investors all over the country. Excluding public issues by the public sector, the following time-series of resources raised from the primary market is displayed :
| Year | Equity
(Rs.bln) |
Debentures
(Rs.bln) |
Total share in
Net Savings (Rs.bln) |
(%) |
| 1984 | 2.5 | 6.6 | 9.1 | 4.6 |
| 1985 | 2.5 | 6.1 | 8.6 | 4.3 |
| 1986 | 9.0 | 8.4 | 17.4 | 7.5 |
| 1987 | 10.1 | 15.6 | 25.6 | 9.4 |
| 1988 | 11.1 | 6.7 | 17.8 | 4.8 |
| 1989 | 10.4 | 2.9 | 32.2 | 6.9 |
| 1990 | 12.3 | 52.8 | 65.1 | 10.1 |
| 1991 | 13.0 | 30.1 | 43.1 | 5.9 |
| 1992 | 17.3 | 40.0 | 57.6 | 6.9 |
| 1993 | 99.8 | 98.4 | 198.3 | 21.7 |
| 1994 | 1 | 97.5 | 201.0 |
In recent years, Euro issues of GDRs and ECBs by Indian companies have taken place on a large scale.
In new guidelines announced on 26th May 1995, Reserve Bank of India (RBI) has allowed for foreign investment in several service sectors, the implication for the capital market is that companies in the finance and leasing sector can issue shares and securities to non-resident Indians and overseas corporate bodies on a repatriable basis. Hitherto, such an allotment was possible only with prior permission from the RBI.
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