Understanding the Impact of Electoral Bonds on the Indian Stock Market
Electoral bonds have been a subject of considerable discussion in Indian politics, with questions arising about their potential impact on various sectors, including the stock market. But how exactly do these bonds influence the financial landscape, and should investors be concerned? Let's delve into this complex topic. Electoral Bonds: A Primer Electoral bonds were introduced in 2018 as a mechanism for individuals and organizations to donate money to political parties. Unlike conventional cash donations, electoral bonds aim to bring transparency to political funding by channeling contributions through banking channels. Potential Impact on the Stock Market One question that often arises is whether the issuance of electoral bonds could sway investor sentiment and consequently affect the stock market. The answer, however, is not straightforward. On the surface, electoral bonds might seem disconnected from the financial markets. After all, their purpose is to fund political activities ...