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INDIAN FINANCIAL SYSTEM

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INDIAN FINANCIAL SYSTEM

  1. 1. INDIAN FINANCIAL SYSTEM PRESENTATION ON
  2. 2.  Introduction The financial system is the system that enables lenders and borrowers to exchange funds. The financial system basically a broader regional system that encompasses all financial institution, borrowers and lenders within the global economy. It is a process and procedures used by an organization’s management to exercise financial control and accountability. These measures include recording, verification and timely reporting of transaction that affect revenues, expenditures, assets and liabilities.
  3. 3.  STRUCTURE OF INDIAN FINANCIAL SYSTEM The basic structure of Indian financial system is derive into four components which are;  Financial services  Financial markets  Financial instruments'  Financial institutions
  4. 4.  FUNCTION OF FINANCIAL SYSTEM The function of financial system are broadly classified into: Saving function Liquidity function Payment function Risk function Policy function
  5. 5.  CLASSIFICATION OF FINANCIAL MARKET The Indian financial system are classified the financial market into: 1) Money market 2) capital market Capital market: Capital market are classified into; Primary markets and Secondary markets
  6. 6.  FINANCIAL MARKET Financial market is a mechanism that allows people to indulged themselves in the buying and selling i.e., trade of financial securities ( stocks and bonds), commodities (precious metals) at price that reflect the market’s effectiveness.
  7. 7.  Primary market: In the primary market, company can raise its capital through issue of shares and debentures by means of Public issue Rights issue Bonus issue Private placement  Secondary market: The secondary market imparts liquidity to the long term securities held by them by providing an auction market for these securities. The secondary market operates through medium of stock exchanges which regulate the trading activities in this market and ensures a measure of safety and fair dealing the investors
  8. 8.  GOVERNMENT SECURITEIS MARKET Types of Government securities  Stock certificate  Promissory notes  Bearer bonds
  9. 9.  FOREIGN EXCHANGE MARKET  The fact resulted in the development of a market which deals specially in currencies, called he foreign exchange market. It is a network of banks, brokers, and dealers spread across the various financial centres of he world. The main players in the foreign exchange market are large commercial banks, FOREX brokers, large corporation and the central banks.
  10. 10. THANK YOU

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