This ppt includes all the details regarding Financial markets and its Institutions. including money market, capital market and some data of SEBI.

1. Financial Markets &
Institutions
Topic:Money Markets & Capital Markets
Submitted by:-
Kunal Garg

2. Financial Markets
 A Financial Market is a location where buyers &
sellers meet to execute financial transaction at
prices determined by the forces of supply and
demand.
 Financial Markets can be classified in different
ways one of them are – Capital market and
Money Market.

3. Money Market
 Money market is the market where institutions deals in
the assets which can be converted into cash without
loss.
 Some of the features of Money Market are:-
 Dichotomic structure
 Multiplicity of interest Rates
 Limited Instruments

4. Functions Of Money market
 Caters the short term financial needs.
 To provide equilibrium mechanism.
 Helps RBI in implementation of monetary policy.
 Helps in allocation of short term funds through
inter bank transactions.

5. Drawbacks of Money Market
 Absence of Integration
 Multiple rate of interest
 Shortage of investment instruments
 Shortage of commercial bills
 Less numbers of dealers

6. Components of money market
 Call Money Market
 Commercial Bill Market
 Treasury Bill Market
 Certificate of Deposits
 Commercial Papers

7. Capital Market
 Capital Market is the market where securities are issued
to raise medium and long term financing, and where the
securities are traded. It is regulated by Securities and
Exchange Board of India(SEBI).
Some of the features of capital market are:-
 Connects Savers and Entrepreneurial borrowers
 Deals in medium and long term investments
 Regulated by Government Rules & regulations
 Variety of investors

8. Organization of capital Market
 Primary Market- It is the market for the fresh
issuance of securities by new as well as existing
companies, in order to raise capital from investors.
 Secondary Market- It is a market for trading of
securities that have been already issued in its initial
private and public offering.

9. Functions of SEBI in capital markets
 Regulate the business in stock exchanges and other
securities markets.
 Prohibit insider trading securities.
 Prohibits fraudulent and unfair trade practices in securities
markets.
 Regulate substantial acquisition of shares and takeovers of
companies.
 Register and regulate the working of mutual funds.

10. Capital market instruments
 Equity market
 Equity shares
 Preferred shares
 Bonds
 Debentures
 Derivatives

11. Thank you