The Indian capital market has one of the longest histories of all times. It is the oldest stock market in Asia. It has witnessed a radical transformation after the liberalization of the economy, and adoption of sophisticated infrastructure and technology led Indian capital markets to a higher platform. But the major area of concern is that the level of investment by the investors has not grown significantly over a decade. The market constitutes of less than 2 percent of investor population and lack of investor awareness and investor protection are the most important factors causing such a low level of participation of investors. The study projects the present scenario of the investors’ awareness in India. It forecasts the grey areas in the financial sector that is leading to the slow growth of the economy. It focuses the need of increasing the financial literacy to increase the investor base in the country. This study looks from various perspectives to figure out the main lagging factor that has kept the different reforms and laws of security market from protecting the investors’ interest. A survey is conducted in Bhubaneswar city to establish the level of awareness among the investors and understanding of capital market. The results of the study indicate that there exists a huge need of financial literacy among the investors about the various aspects of Indian Financial Market.