Factors Affecting E-Governance Ecosystem for Capital Market in India

Abstract

The study investigates factors influencing the e-governance ecosystem in India's capital market, recognizing its critical role in the rapidly expanding Indian stock market. The research aims to create an environment that supports legitimate businesses and investors while deterring unethical practices. The descriptive study was conducted by collecting the primary data through purposive sampling. The sample of 500 capital market employees using a structured questionnaire. The reliability test and exploratory factor analysis are used to examine the data. The findings reveal that the Indian capital market significantly impacts corporate governance by enforcing management procedure regulations. While legal frameworks are essential, the capital market can effectively reward or penalize companies based on their governance practices, provided sufficient accountability and transparency exist. The market's governance function can mitigate agency issues by disciplining management and enhancing overall firm governance. This research contributes to the understanding of e-governance in India's capital market, offering insights into its potential for fostering ethical business practices, investor protection, and overall market integrity. The outcomes of the present study have implications for policymakers, regulators, and market participants in shaping effective e-governance strategies for the evolving Indian capital market landscape