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Synopsis Capital markets play a crucial and effective role in the economic development a nation. It provides the financial resources needed for the long term and sustainable development of the different sectors of the economy. The health of the economy is reflected in the two wings of the capital market, i.e. New Issue market and the secondary market. The present study makes an endeavour to outline the theoretical, legal and operative framework and present position of New Issue market and have a detailed study of its emerging dimensions so as to discover the strengths and weakness of the market and to help in understanding the future trends and tendencies of New Issue market. An effort is being made here to examine the conceptual, legal and policy framework governing the operations of the New Issue market which is an important constituent of the corporate financial system in India and highlights the drawbacks and malpractices with special reference to the small equity investors and makes suggestions to develop the equity cult on the sustainable path.