capital markets

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capital markets

  1. 1. CAPITAL MARKET Presented By: Ajay Singh (060) Ashish Garg(050)
  2. 2. CAPITAL MARKET • The market where investment instruments like bonds, equities and Securities are traded is known as the capital market. • The primary role of this market is to make investment from investors who have surplus funds to the ones who are running a deficit. • The capital market offers both long term and short term.
  3. 3. Types of financial Instruments  Equity instrument  Credit market instruments  Foreign exchange instruments  Derivative instruments.
  4. 4. Nature of Capital Market  It has two segments  It deals in long-term securities  It helps in capital formation  It helps in creating liquidity
  5. 5. Types of Capital Market Primary Market Secondary Market
  6. 6. Primary Market  The primary market is that part of the Capital Markets that deals with the new securities.  It is that market in which Shares, Debentures and other securities are sold for the first time for collecting long-term capital.  This market is concerned with new issues. Therefore, the primary market is also called New Issue Market.
  7. 7. Features of Primary Market  It is related with new issues  It has no particular place  In a primary issue, the securities are issued by the company directly to investors.  Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue.
  8. 8. Methods of Issuing Securities  Initial Public Offer  Offer For Sale  Private Placement  Right Issue  Book building
  9. 9. Secondary Market  The secondary market is that market in which the buying and selling of the previously issued securities is done.  The transactions of the secondary market are generally done through the medium of stock exchange.  The chief purpose of the secondary market is to create liquidity in securities.
  10. 10. Features of Secondary Market  Creates liquidity  Comes after primary market  Has a particular place  Encourage new investments
  11. 11. INDIAN CAPITAL MARKET “The Indian Capital Market is one of the oldest capital markets in Asia which evolved around 200 years ago”
  12. 12. Chronology Of Indian Capital Market  1994-Equity Trading commences on NSE  1995-All Trading goes Electronic  1996- Depository comes in to existence  1999- FIIs Participation- Globalization  2000- over 80% trades in Demat form
  13. 13. ROLE OF CAPITAL MARKET IN INDIA’S INDUSTRIAL GROWTH  Promotion of industrial growth  Raising long-term capital.  Ready and continuous market  Proper channelization of funds  Provision of a variety of services
  14. 14. Broad Constituents in the Indian Capital Markets Fund Raisers • Public Company • Private Company Fund Providers • Domestic, Foreign Investors • Retail Investors Intermediaries • Stock Brokers, Sub Brokers • Merchant Bankers, Underwriters
  15. 15. ORGANISATION • BSE, NSE • NSDL, CDSL MARKET REGULATORS • SEBI, RBI
  16. 16. 40% 15% 37% 9% Sources of External Finance Bank Loans Non Bank Loans Bonds Stock
  17. 17. S W I F T Society For Worldwide Interbank Financial Telecommunication
  18. 18. THANK YOU

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