1. CAPITAL MARKET
Presented By:
Ajay Singh (060)
Ashish Garg(050)

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. Types of financial
Instruments
 Equity instrument
 Credit market instruments
 Foreign exchange instruments
 Derivative instruments.

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. Types of Capital Market
Primary
Market
Secondary
Market

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. 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. Methods of Issuing
Securities
 Initial Public Offer
 Offer For Sale
 Private Placement
 Right Issue
 Book building

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. Features of Secondary
Market
 Creates liquidity
 Comes after primary market
 Has a particular place
 Encourage new investments

11. INDIAN CAPITAL MARKET
“The Indian Capital Market is
one of the oldest capital markets
in Asia which evolved around 200
years ago”

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. 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. 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. ORGANISATION
• BSE, NSE
• NSDL, CDSL
MARKET REGULATORS
• SEBI, RBI

16. 40%
15%
37%
9%
Sources of External Finance
Bank Loans Non Bank Loans Bonds Stock

17. S
W
I
F
T
Society
For
Worldwide
Interbank
Financial
Telecommunication

18. THANK YOU