The document discusses key components of India's financial system and its regulatory bodies. It describes the financial system as comprising financial institutions, assets, services, and markets. It outlines various financial institutions like banks and non-banks. It also discusses important financial assets, services offered, and types of markets. The regulatory bodies that oversee major financial sectors in India are also introduced, including the Reserve Bank of India, Insurance Regulatory and Development Authority, Securities and Exchange Board of India, and Pension Fund Regulatory and Development Authority.

1. FINANCIAL SYSTEM
COMPONENTS AND
REGULATORY BODY
PRESENTED TO : Ms ALKA SOOD
PRESENTED BY : MOHAMMAD YUSAF
MBA 3RD SEM.
19 PBA 014

2. CONTENT
• Meaning of financial system.
• Component of financial system.
• Regulatory body.

3. MEANING OF FINANCIAL
SYSTEM
The Financial System is defined as the composition of
different financial institutions, markets, regulators,
transactions, analytic agencies and fund managers”
Thus the financial system develops a common platform for
borrowers as well as investors may invest their money and
borrowers may arrange funds.

4. COMPONENTS OF FINANCIAL
SYSTEM
1. FINANCIAL INSITUTIONS.
2. FINANCIAL ASSESTS.
3. FINANCIAL SERVICES.
4. FINANCIAL MARKETS.

5. FINANCIAL INSTITUTIONS
The first component of the financial system is a financial
institutions. The financial institutions are private or
government entities which offers several services to the
general public and business for the management of funds.
The financial institutions work as an intermediary between
depositors/ investors and borrowers. Thus financial
institutions fulfil the gap between landers and borrowers.
For instance, commercial banks, cooperative banks,
insurance companies are some examples of financial
insitutions.

6. CONT….
The financial institutions can be of two types.
• Banking Institutions: The banking institutions are those
which accept deposits as well as distribute loans to the
individuals and businesses.
• Non Banking Institutions: Non banking institutions don’t
accept deposits from the public but offer various
financial products and services to their customers. The
insurance companies, mutual funds agencies, stoock
brokers and primary dealers are few examples of non
banking institutions.

7. FINANCIAL ASSESTS
The product which are traded in the Financial Market are called
the Financial Assets. Based on the different requirement and
needs of the credit seeker, the securities in market also differ
from each other.
Some important financial assests have been discussed briefly
below:
• Call Money:- When a loan is granted for one day and is
repaid on the second day, it is called call money. No collateral
securities are required for this kind of transaction
• Notice Money:- When a loan is granted for more than a day
and for less than 14 days. It is called notice money. No
collateral securities are required for this kind of transactions.

8. CONT….
• Term money:- When the maturity period of a deposits
is beyond 14 days. It is called term money.
• Treasury Bills:- Also know as T-Bills, These are the
Government bonds or debt securities with maturity of
less than a year. Buying a T- Bill means lending money to
the Government.
• Certificate of Deposits:- It is a dematerialised form for
funds deposited in the bank for a specific period of time.
• Commercial Paper:- It is an unsecured short term debt
instrunment issued by corporations.

9. FINANCIAL SERVICES
The services offered by the financial institutions for the
management, lending, borrowing and investment of funds
are called financial services.
There are basically four categories of financial services
offered in India.
• General Banking Services:- The services offered by the
commercial bank or other banking institutions such as
deposit of money, granting loans/ advances, Bill
discounting, credit/ debit card, account opening etc.
• Insurance Services:- The various insurance policies like
life insurance, health insurance, car insurance etc. are
sold under these kinds of services.

10. CONT….
• Investment Services:- The various financial institutions
such as stock brokers, merchant and investment
bankers, primary dealers provide investment and assets
management services to the business and corporatios.
• Foreign Exchange Services:- These are the special
services which deals in exchange of foreign currencies.

11. FINANCIAL MARKET
The marketplace where buyers and sellers interact with each
other and participate in the trading of money bonds, shares and
other assets is called financial market.
The financial market can further divided into four types:-
• Capital Market:- It is the market place where the long term
securities like stocks, bonds, debenture are issued and traded
BSE, NSE and NYSE are the some examples of capital market .
The capital market can further be divided into three types:-
(a) Corporate Securities Market.
(b) Government Securities Market.
(c) Long Term Loan Market.

12. CONT….
• Money Market:- It is market place where the short term
securities like treasury bills, repo, commercial paper etc.
are issued and traded over the counter among people.
The money market can further divided into two types:-
(a) Organised Money Market.
(b) Unorganised Money Market.
• Foreign Exchange Market:- One of the most developed
markets across the world, the Foreign exchange market
deals with the requirements related to multicurrency.
The transfer of funds in this market take place based on
the foreign currency rate.

13. CONT….
• Credit Market :- A market where short term and long
term loans are granted to individuals or organisations by
various banks and financial or non financial institutions is
called credit market.

14. REGULATORY BODY
Financial regulators refers to the government bodies which are
responsible for regulating, inspecting, monitoring, the functions
of various financial institutions like banks, insurance companies,
business entities, non banking financial companies etc.
Financial regulators are the apex bodies of financial institutions
of respective sectors which register and functions under these
regulators in india
• RBI (Reserve Bank of India)
• IRDA (Insurance Regulatory and Development Authority)
• SEBI ( Securities Exchange Board of India)
• PFRDA (Pension Fund Regulatory and Development Authority)
• FMC (Forward Market Commission)

15. RBI (RESERVE BANK OF INDIA)
CEO:- SHAKTI KANTA DAS
Established in April, 1935 in Calcutta, the RBI later moved
to Mumbai in 1937. After its nationalization in 1949, RBI is
presently owned by the government of India. It is the
issuer of the Indian rupees. RBI regulates the banking and
financial system of the country by issuing broad guideline
and instructions.

16. IRDA (INSURANCE REGULATORY
DEVELOPMENT AUTHORITY)
CEO:- SUBHASH CHANDRA KHUNTIA
IRDA is an autonomous apex statutory body for regulating
and developing the insurance industry in India .It was
established in 1999 through the act passed by the Indian
parliament. Headquarter in Hyderabad, Telangana. IRDA
regulates and promotes insurance business in india.

17. SEBI ( SECURITIES EXCHANGE
BOARD OF INDIA)
CEO:- AJAY TYAGI
SEBI was established in 1988 but goes legal status in 1992
to regulate the functions of securities market to keep
check on malpractices and protect the investors.
Headquarter in Mumbai, SEBI has its regional offices in
New Delhi, Kolkata, Chennai, and Ahmedabad.

18. PFRDA(PENSION FUND
REGULATORY AND
DEVELOPMENT AUTHORITY)
CEO:- SUPRATIM BANDYOPADHYAY)
Established in October 2003 by the Government of India.
PFRDA develops and regulates the pension system was
launched in January 2004 with the aim to provide
retirenment income to all the citizens. The objectives of
NPS is to set up pension reforms and inculcate the habit of
saving for retirenment amongst the citizen.

19. FMC ( FORWARD MARKET
COMMISSION ) OF INDIA
CEO:- RAMESH ABHIESHEK
Headquartered in Mumbai, FMC is a regulatory authority
governed by the Ministry of Finance, Govt. of India. It is a
statutory body established in 1953 under the Forward
Contracts (Regulation) Act 1952. the commission allow
commodity trading in 22 exchange in India. The FMC is
now merged with SEBI.

20. THANK YOU!!!