There is no enhancement of economic efficiency to speak of.” Hence it is necessary to keep the context of economic efficiency in view while talking about market efficiency. Indian equity market & the derivatives 11. Financial markets in India in the modern sense of the term have had a short history and are in a way in their nascent stage.
You will recall that post-independence, in the planeconomy era, we had what has been called a regime of financial repression where the key economic variables were determined by fiat rather than through a market process. The financial markets evolved into their present form following the liberalization that started in the early nineties.