FIS

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FIS 4 mbaIIsem

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FIS

  1. 1. Financial Markets Participants & Instruments
  2. 2. Financial System <ul><li>Financial Institutions </li></ul><ul><li>Financial Markets </li></ul><ul><li>Financial Instruments </li></ul><ul><li>Financial Services </li></ul>
  3. 3. Financial Institutions <ul><li>Regulatory </li></ul><ul><li>Intermediaries (Banking, Non Banking..UTI, LIC, GIC </li></ul><ul><li>Non Intermediaries( NABARD, IFCI) </li></ul>
  4. 4. Financial Markets <ul><li>Money Market </li></ul><ul><li>Capital Market </li></ul><ul><li>Forex Market </li></ul>
  5. 5. Money Market <ul><li>Call Money Market(1 day to fortnight) </li></ul><ul><li>Treasury Bill Market </li></ul><ul><li>Commercial Bill Market </li></ul><ul><li>Commercial Papers (Reputed organisation) </li></ul><ul><li>Short Term Loan Market </li></ul>
  6. 6. Capital Market <ul><li>1 Security Market </li></ul><ul><li>Primary & Secondary (New issue Market) </li></ul><ul><li>2 Long Term Bonds </li></ul><ul><li>- FI Bonds , PSU Bonds , Corporate Bonds </li></ul><ul><li>Broad, Deep, Shallow Financial Markets </li></ul>
  7. 7. Financial Instruments <ul><li>Financial Claims / Assets(Claims to payment of money..Govt.Bonds,Bank Deposits) </li></ul><ul><li>Financial Securities (Primary, Secondary) </li></ul><ul><li>Tax Free Bonds, 91 Day Treasury Bills , Commercial Papers, Zero Coupon Bonds </li></ul>
  8. 8. How Financial Instruments Differ with each other <ul><li>Liquidity </li></ul><ul><li>Security Value </li></ul><ul><li>Marketability </li></ul><ul><li>Maturity Period </li></ul><ul><li>Transaction Cost, Risk, ROI , Price Fluctuations </li></ul>
  9. 9. Money Market <ul><li>Short Duration </li></ul><ul><li>High Liquidity </li></ul><ul><li>High Safety </li></ul><ul><li>Restricted Participants </li></ul><ul><li>Large Volume </li></ul><ul><li>Dealing with or without brokers </li></ul>
  10. 10. Weaknesses <ul><li>Unorganised Money market </li></ul><ul><li>Lack of Integration </li></ul><ul><li>Non emergence of National Market </li></ul><ul><li>Disparity of interest rates </li></ul><ul><li>Limited Bill Market </li></ul><ul><li>Shortage of funds </li></ul><ul><li>Interest rate fluctuations </li></ul><ul><li>Inadequate Elasticity & Stability </li></ul><ul><li>Inefficient Banking Facilities </li></ul><ul><li>Limited supply of instruments, foreign funds </li></ul>
  11. 11. <ul><li>Restricted Secondary Market </li></ul><ul><li>Limited number of participants </li></ul>

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