The economics of financial markets present a concise overview of the organizational structure, role, conduct and performance of the financial markets in India. This book explores whether due to various institutional reforms, huge inflows of foreign capital, current account convertibility and on the verge of capital account convertibility, the different financial sub markets such as domestic market and foreign exchange market are tending towards integration? If yes, to what extent and how? Whether integration of these sub-markets leads to efficiency in the individual sub-markets and also the financial markets as a whole? These topics are also studied with reference to the 'subprime mortgage' crises' that is started in the USA in 2007-08. Stress is laid on the theoretical perspectives of financial development and economic growth and emergence of Basel-III accord on the eve of the 'Global Financial Crisis' with the special focus on the impact assessment of the Indian financial sector.