Capital market in India has undergone radical changes in recent times. Under the liberalization policies Indian stock market is forced to follow certain improvement policies so as to compete foreign mega based MNC’s and venture capital of the units. National security exchange board and Stock exchange boards of India(SEBI) played a dominant role in regulating the activities of the capital market and also safe guarding the interest of the investors of the stock market. Under the threats of global melt down and financial crisis in all over the economies, Indian stock market is in a position to follow and introduce certain modification procedures and updating the functioning system of capital market with the proper policies and programs. In this context the role of NRI investors is appreciable under the control of FERA and FEMA acts. The author focuses in this paper the need for following improvement measures on Indian capital market with some policies and program measures.