Correspondence: Arindam Banerjee, SP Jain Center of Management, Dubai, Singapore. E-mails: researchicfai@yahoo.com; arin_006@yahoo.com

¹is an assistant professor in SP Jain Center of Management, Dubai and teaches at both its Dubai and Singapore campuses. He has done his MBA from ICFAI Business School, Hyderabad and is presently pursuing his Doctoral programme. At SP Jain, he conducts advanced finance courses namely, Wealth Management, Venture Capital and Private Equity, Risk Management and Corporate Valuation for both its Global Management programme and Executive Management programme. Prior to SP Jain, he was a faculty member at Institute of Chartered Financial Analyst of India (ICFAI) where apart from his normal teaching assignments, he was a consulting Editor for Portfolio Organizer, a monthly publication pertaining to areas of Investments, Personal Finance and Global Economy. He has also been a visiting faculty to the Hyderabad chapter of 'Institute of Companies Secretaries of India'. He has edited several books namely 'Islamic Investments', 'Global Stock Exchanges: Dawn of a New Era' and 'Capital Markets in the BRIC Economies'. He has more than 40 published articles, case studies and several published research papers in finance-related areas in international and leading Indian and international journals.

Received 17 January 2008; Revised 17 January 2008.

Abstract

Information about private transactions is often limited; hence, analysing their developments in the emerging markets becomes more difficult. The paper tries to establish a threefold relationship. It examines the importance of emerging markets in the global context within the realm of the BRIC economies, the role of capital market in the overall development of an economy and the relevance of private equity (PE) in boosting a country's capital market. It examines the various reasons for the PE market's explosive growth over the past 15 years in a phased manner and highlights the main characteristics of that growth. The paper aims to understand in a comprehensive manner the importance of PE investments in boosting the size of a nation's capital market and its overall impact in the context of developing nations, with an added focus on India. The paper draws the data primarily from trade journals.