Abstract

Several factors including legal, regulatory, and macroeconomic considerations, as well as market efficiency, have an impact on the trading liquidity of stock markets. Increasing liquidity, access to finance, and stability are all benefits that result from incorporating developing nations into the global financial system. As a result of the correlation between the development of the stock market and continuous economic growth, regulations that are designed to encourage efficient markets must be maintained. Fair policies that are supportive of small businesses are required in India to maximise the role that the stock market plays in economic progress. SMEs and investors alike. Streamlining procedures allowing small and medium-sized enterprises (SMEs) to get access to financial markets has the potential to increase economic activity. India has the potential to harness its stock market for the purpose of generating wealth and achieving sustainable development if it cultivates an environment that is investor friendly.

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