Financial markets: the recent experience of a developing economy

The financial sector plays a crucial role in economic growth; it allows an efficient transfer of resources from those who save to those who invest. This sector comprises financial institutions, markets and instruments. This study highlights the fact that change has always been the hallmark of financial markets and the regulatory board of the Sudanese financial market. The Sudanese capital market, although an infant, could follow the route of other well-established capital markets of developing countries, keeping in view the so called globalisation, privatisation and liberalisation phenomena of the Sudanese corporate sector and securities market. There is a need for a more responsive and effective regulator to guide primary as well as secondary securities markets. This paper seeks to extend the literature by exploring the issue related to a small emerging capital market; the paper examines the current practices of Khartoum Stock Exchange (KSE) in trading of shares and evaluates the efficiency of the capital market in Sudan, as this area is still virgin in the Sudanese context, since financial markets are not generally the object of such scrutiny.