Explain any four problems of capital market in India.

Answer: Problems of the Indian capital market:

1. Insider trading: Persons with inside information about a company use it to make profits on the stock exchange, which harms ordinary investors.
2. Lack of transparency: Some companies do not disclose correct and full information, so investors cannot judge risk properly.
3. Price manipulation and scams: Brokers and operators artificially raise or lower share prices; scams reduce investor confidence.
4. Speculation and volatility: Excessive speculation causes sharp fluctuations in share prices.
5. Limited participation of small investors: Lack of awareness and financial literacy, especially in rural areas, keeps small savers away.
6. Inadequate supply of long-term funds: Low savings and dominance of a few large institutions restrict the depth of the market.