Financial Market plays a very important role in development of any country because it is place where liquidity requirement who needs money like industries to meet their expansion plans and those who want to earn better rate of interest on the surplus funds are met .Individuals and financial institution having surplus money come to earn better rate of interest Financial market is a platform where buyers and sellers are involved in sale and purchase of financial products like shares, mutual funds, certificate of deposit ,bonds and so on. Any industry like reliance ,tatas or government needs money to meet liquidity requirement come to financial market .Financial market act as intermediary between those who need money and who want to invest their money to earn better rate of interest. Financial market are divided in two types depends on duration for which they need money. There are two types of financial market : Money Market Capital Market A market where the trade of financial securities like bonds, stocks etc. take place between buyers and sellers is known as Capital market. The participants of the trade can be either institutions, companies or private individuals. Usually, long-term securities are traded in it. The capital market is comprised of primary and secondary markets. Primary markets are the ones which deal in trading of new securities and stocks while the secondary markets are the ones which are involved in trading of previously-held securities. Capital market can also be divided based on the nature of the security traded i.e. a stock market or a bond market.