Much has happened in the Indian capital market in the last 17 years. With its foundations laid in socialist based economy of four decades, with strict government control over private sector participation, foreign trade and foreign direct investment, India opened its gates to the outside world in the early 1990s. Since then its economy and financial markets underwent radical changes, largely in response to the economic crisis of the late 1980s. The government control on foreign trade and investment were loosened and the barriers to entry in the days of the license raj were relaxed. The emergence of Securities and Exchange Board of India (SEBI) as the supreme capital market regulator showed India’s commitment to come across as a strong economic force, through establishing market best practices of enhanced corporate disclosure and increased investor protection. The establishment of National Stock Exchange (NSE), a state-of-the art exchange, with sophisticated technology to improve trading practices and reduce unethical dealings, supported by a strong legal framework and technological base to strengthen the governance structure, has been the highlight of the Indian capital market in the last decade. The opening up of the economy has increased the flow of Foreign Direct Investment (FDI) and has put India on the global map, as a new-age economic force to reckon with.rnThis paper attempts to discuss the journey of the Indian capital market from the pre- reform era to the current era of liberalization and enhanced governance.