Financial markets provide platform for interaction of investors and borrowers. They provide pricing information of financial instruments to everyone, liquidity and security framework for the dealing of financial assets. Thus it may be concluded that in financial markets money, by its very nature, lands into the pockets of its most efficient users.

With the emergence of information and communication technology the sector which is most affected positively world – wide is the financial sector. The integration of the financial markets throughout globe provides the super fast highways for the free flow of the capital. Financial market integration plays a very significant role in shaping the fortunes of many individual and institutional investors.

Equity market integration is of considerable significance to issuers and investors as it plays a critical role in channeling funds. Stock markets tend to be very efficient in the allocation of capital to its highest-value users. Such integrated markets could also help to increase savings and investment, which are essential for economic development.