In recent decades, India progressed in economic development, attaining quick and continuous growth with an average GDP expansion of nearly 7% per year during the last ten years. Similarly, the United Kingdom has seen tremendous economic growth during the same period. In the United Kingdom, the financial industry has been critical to the country's overall economic progress. This industry is well-developed, with well-established financial markets such as the stock and bond markets, which provide enterprises with various funding and investment alternatives. This advancement has enabled firms in the United Kingdom to acquire finance leverage and expand their operations, contributing to the country's overall economic growth. India and the UK have robust capital markets that offer various investment options for individuals and companies. However, there are significant differences in both countries in terms of the size of the markets, regulatory frameworks, and investor behaviour. This paper examines the comparative analysis of the capital markets of both countries.

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Keywords: Capital Markets, Derivatives, Risk and Returns, Financial Leverages.