The document discusses the capital market in India. It defines a capital market and explains that it consists of primary and secondary markets. It outlines the importance of the Indian capital market in mobilizing savings and channeling funds. It then discusses the structure of the Indian capital market including stock exchanges, SEBI, money markets, and classifications of financial markets. Recent reforms and trends in the Indian capital market are also summarized such as introduction of derivatives, increased institutionalization, and globalization.
The document summarizes ABC Ltd issuing bonds to raise further funds for expansion. ABC Ltd plans to issue bonds worth Rs. 1000 each with a face value of Rs. 1000. The bonds will have a tenure of 5 years and offer an annual interest rate of 10% paid yearly. For example, if an investor invests Rs. 50,000 by buying 50 bonds, they will receive annual interest of Rs. 5000. The bonds allow ABC Ltd to raise funds without diluting ownership, and investors receive periodic interest payments as well as return of principal after 5 years.
This document provides an overview of secondary markets, including:
1) It defines a secondary market as a market where securities are traded after being initially offered to the public, and describes how it comprises equity and debt markets.
2) Key characteristics of secondary markets are discussed, including trading on exchanges and over-the-counter, realizing capital gains, and providing liquidity.
3) The roles of brokers and sub-brokers in facilitating secondary market trades are outlined.
4) Risk management processes used by SEBI like varying margins and circuit breakers are summarized.
The capital market is where buyers and sellers trade financial securities like stocks, bonds, and other long-term investments. It has two segments: the primary market where new stock is issued, and the secondary market where previously issued stocks and bonds are traded. The capital market helps raise long-term funds for companies and governments through instruments like equity, credit market products, debentures, and foreign exchanges. It mobilizes savings, forms capital, provides investment opportunities, and regulates funds.
This document provides an overview of the Indian capital market. It defines capital markets as markets for trading long-term financial securities, where individuals and institutions can buy and sell debt and equity instruments. The capital market has a primary market for new security issuances and a secondary market for trading existing securities. It discusses the key participants in the market - issuers who raise capital, investors who provide capital, and intermediaries who facilitate transactions. The document also outlines the roles and functions of the capital market in facilitating capital formation, savings mobilization, and economic growth.
What is Financial Market :
Mechanism that allows people to buy and sell financial securities (such as stocks and bonds) and items of value at low transaction cost.
Markets work by placing many interested buyers and sellers in one โplaceโ, thus making easier for them to find each other.
The document provides an overview of the debt market in India. It discusses that the Indian debt market is dominated by government bonds and is an important source of funds for the central and state governments to finance activities and manage budgets. It describes various debt instruments like government securities, corporate bonds, commercial papers, and certificates of deposits. It also outlines participants, regulatory bodies, and risks associated with the debt market while highlighting advantages like assured returns and disadvantages like lower returns compared to equity markets.
The document provides an overview of the capital market in India. It defines the capital market as the market for medium to long term financial instruments, including shares and bonds. The capital market has three main elements - financial assets/instruments, financial intermediaries, and financial markets. It then discusses the stock market and bond market in India, as well as the size and growth of the Indian economy and capital markets. Finally, it provides reasons for investing in the Indian capital markets, such as their regulation and integration with international standards.
The document discusses the Indian capital market. It has two segments - the primary market where new securities are first issued to investors, and the secondary market which is the stock exchange where existing securities are traded. The key functions of the capital market are to mobilize savings, facilitate capital formation and economic growth. It discusses various instruments like equity shares, bonds, and methods of issuance like IPO, right issue, bonus issue etc. Important participants include brokers, banks, mutual funds. The regulator is SEBI and it oversees raising of capital and trading according to guidelines.
The document summarizes ABC Ltd issuing bonds to raise further funds for expansion. ABC Ltd plans to issue bonds worth Rs. 1000 each with a face value of Rs. 1000. The bonds will have a tenure of 5 years and offer an annual interest rate of 10% paid yearly. For example, if an investor invests Rs. 50,000 by buying 50 bonds, they will receive annual interest of Rs. 5000. The bonds allow ABC Ltd to raise funds without diluting ownership, and investors receive periodic interest payments as well as return of principal after 5 years.
This document provides an overview of secondary markets, including:
1) It defines a secondary market as a market where securities are traded after being initially offered to the public, and describes how it comprises equity and debt markets.
2) Key characteristics of secondary markets are discussed, including trading on exchanges and over-the-counter, realizing capital gains, and providing liquidity.
3) The roles of brokers and sub-brokers in facilitating secondary market trades are outlined.
4) Risk management processes used by SEBI like varying margins and circuit breakers are summarized.
The capital market is where buyers and sellers trade financial securities like stocks, bonds, and other long-term investments. It has two segments: the primary market where new stock is issued, and the secondary market where previously issued stocks and bonds are traded. The capital market helps raise long-term funds for companies and governments through instruments like equity, credit market products, debentures, and foreign exchanges. It mobilizes savings, forms capital, provides investment opportunities, and regulates funds.
This document provides an overview of the Indian capital market. It defines capital markets as markets for trading long-term financial securities, where individuals and institutions can buy and sell debt and equity instruments. The capital market has a primary market for new security issuances and a secondary market for trading existing securities. It discusses the key participants in the market - issuers who raise capital, investors who provide capital, and intermediaries who facilitate transactions. The document also outlines the roles and functions of the capital market in facilitating capital formation, savings mobilization, and economic growth.
What is Financial Market :
Mechanism that allows people to buy and sell financial securities (such as stocks and bonds) and items of value at low transaction cost.
Markets work by placing many interested buyers and sellers in one โplaceโ, thus making easier for them to find each other.
The document provides an overview of the debt market in India. It discusses that the Indian debt market is dominated by government bonds and is an important source of funds for the central and state governments to finance activities and manage budgets. It describes various debt instruments like government securities, corporate bonds, commercial papers, and certificates of deposits. It also outlines participants, regulatory bodies, and risks associated with the debt market while highlighting advantages like assured returns and disadvantages like lower returns compared to equity markets.
The document provides an overview of the capital market in India. It defines the capital market as the market for medium to long term financial instruments, including shares and bonds. The capital market has three main elements - financial assets/instruments, financial intermediaries, and financial markets. It then discusses the stock market and bond market in India, as well as the size and growth of the Indian economy and capital markets. Finally, it provides reasons for investing in the Indian capital markets, such as their regulation and integration with international standards.
The document discusses the Indian capital market. It has two segments - the primary market where new securities are first issued to investors, and the secondary market which is the stock exchange where existing securities are traded. The key functions of the capital market are to mobilize savings, facilitate capital formation and economic growth. It discusses various instruments like equity shares, bonds, and methods of issuance like IPO, right issue, bonus issue etc. Important participants include brokers, banks, mutual funds. The regulator is SEBI and it oversees raising of capital and trading according to guidelines.
The document discusses key aspects of secondary markets. It defines secondary markets as markets where securities are traded after being initially offered to the public in primary markets. The majority of trading occurs in secondary markets, which comprise equity and debt markets. Secondary markets offer both sellers and buyers advantages, such as sellers recouping a portion of the original purchase price, though they can also reduce sales for original sellers. Key products traded in secondary markets include equity shares, government securities, debentures, and bonds.
This document provides an introduction and overview of a research project on comparative analysis of mutual fund schemes. It includes sections on the certificate, declaration, acknowledgement, index, and beginning of the introduction. The introduction provides background on mutual funds in India, including the structure of the Indian financial system and history of the mutual fund industry. It discusses advantages of mutual fund investment, importance of mutual funds, types of mutual funds, and risks associated with mutual funds.
This document provides an overview of capital markets, including the primary and secondary markets. It defines capital markets as markets for trading long-term investment instruments like bonds and stocks. The primary market involves new securities being issued, while the secondary market is where existing securities are traded. Key participants in the secondary market are stock exchanges, clearing corporations, and brokers. The Securities and Exchange Board of India (SEBI) regulates capital markets and aims to protect investors while promoting fair practices.
The document discusses capital markets and the roles of primary and secondary markets. It defines capital markets as markets for trading long-term investment instruments like bonds and stocks. The primary market involves new issuances of securities to raise capital, while the secondary market allows existing securities to be traded among investors, bringing liquidity. SEBI regulates India's capital markets to protect investors, curb fraud, and promote fair and efficient functioning of the markets.
The capital market is where long-term investment instruments like stocks, bonds, and mortgages are traded. It connects investors with surplus funds to those who need funds. The capital market trades both long-term and short-term financial instruments like equities, bonds, insurance products, currencies, and derivatives. It helps companies and governments raise cash by selling securities and allows investors to invest their excess funds and earn returns while channeling funds from savers to borrowers. The primary market involves new security issues being sold for the first time, while the secondary market involves the subsequent trading of existing securities.
The primary market involves the initial sale of securities to investors, allowing companies to raise capital directly. It has no single location and uses various methods like public issues and private placements. The secondary market involves subsequent trading of existing securities between investors through stock exchanges. It provides liquidity for securities and encourages new investment in companies. Some key differences are that the primary market deals with new issues while the secondary market trades existing securities in a centralized location like an exchange.
The primary market refers to the market for new issues of securities. Companies raise funds directly from investors through primary market mechanisms like initial public offerings, rights issues, and preferential allotments. The primary market allows small and medium businesses to raise money from the public and accelerates capital formation. It consists of new equity capital being issued for the first time. The secondary market refers to the subsequent trading of existing securities between investors. The major difference is that primary market issues are new securities offered by companies, while secondary market involves trading of existing securities between investors.
The primary market deals with the issuing of new securities by companies, governments, or public institutions to raise funds. This is typically done through an investment bank or syndicate of securities dealers through processes like initial public offerings (IPOs) of stock, follow-on public offerings (FPOs), private placements, rights issues, and bonus issues. The primary market creates long-term instruments through which corporate entities can borrow capital. It allows companies to attract new capital, transfer assets into financial assets, and invest money for short or long term goals.
The document provides an overview of the derivatives market in India. It discusses key concepts like forwards, futures, options, and swaps. It outlines the evolution of the derivatives market in India, from the first steps taken in 1995 to remove prohibitions on options trading, to the establishment of a regulatory framework by SEBI and the launch of index futures and options trading on exchanges like NSE and BSE in 2000. The needs served by derivatives markets are also summarized, such as risk transfer, price discovery, and increasing market volumes. Common participants like hedgers, speculators, arbitrageurs and spreaders are defined. Examples of popular derivatives products available on Indian exchanges are also provided.
The financial system of a country is crucial to its economic development by providing necessary financial inputs. It consists of institutions that mobilize savings from surplus units and transfer them to deficit units through financial markets and services. Financial markets can be classified as money markets which deal in short term assets, and capital markets which include primary markets for new securities and secondary markets for existing securities. Together these markets and their instruments such as shares, bonds, and deposits help circulate funds in an economy.
The document provides an overview of the Indian capital market. It discusses key concepts like primary and secondary markets, types of financial instruments traded (equity shares, bonds, etc.), participants (issuers, investors, intermediaries), regulatory body SEBI and its roles, sources of long-term financing like equity, debt, retained earnings, and venture capital. The capital market helps raise long-term funds for businesses and channels savings of individuals into productive investments. SEBI regulates and develops the capital market to protect investors and ensure its orderly functioning.
This document discusses derivative instruments such as futures and forwards. It defines derivatives as instruments whose value is derived from an underlying security such as a stock, commodity, currency, or index. Future contracts obligate the buyer and seller to transact at a predetermined price on a future date, while forward contracts are similar but not standardized. Reasons for using derivatives include hedging against volatility and speculation. Key concepts discussed include short selling, holding long positions, and offsetting forward contracts before expiration to realize gains or losses.
Presentation on Brief introduction to Indian financial markets (Indian Financial System). This presentation broad classification of the financial system into financial institutions, financial markets, financial instruments and financial services.
Clearing and settlement involves matching trades, determining obligations, and exchanging securities for cash. It is facilitated by clearing members, clearing banks, depositories, and the clearing corporation. Key risks include counterparty default and liquidity issues. The clearing corporation manages these risks through activities like trade confirmation, multilateral netting to determine obligations, collecting margins, and imposing limits. It acts as the central counterparty to assume default risk and ensure settlement is completed as required by market rules.
The document provides an overview of how stock exchanges work. It discusses that a stock exchange is a regulated market where brokers can buy and sell stocks, bonds, and other securities. It also describes the two phases of trading that occur - brokers first execute orders for their clients, then securities and cash are exchanged between traders using clearing houses and depositories. The document then discusses different types of trading systems, order types, speculators, and the basic process an investor follows to trade securities through a broker.
The document provides information about the Indian financial system and markets. It discusses:
1) The nature and functions of financial markets, which provide a mechanism for trading financial assets and claims, and help promote savings and investment.
2) The key components of the Indian financial system - financial assets/instruments, financial institutions, and financial markets (money markets and capital markets).
3) The roles and participants in the primary and secondary markets. The primary market provides channels for new securities issues, while the secondary market facilitates trading of existing securities and promotes liquidity and price discovery.
The document provides an overview of the Indian financial system. It discusses the key components of the financial system including financial assets, institutions, markets, and their various functions. It describes the major financial institutions in India like banks, mutual funds, insurance companies. It also explains various financial instruments in the money market and capital market that enable raising and deployment of funds. The document presents diagrams to illustrate the structure and flow of funds within the Indian financial system.
This document discusses factoring, which is an arrangement where a firm sells its receivables to a financial institution called a factor. The factor then provides financing to the firm, maintains accounts/ledgers related to receivables, collects on receivables from customers on behalf of the firm, and assumes the risk of payment defaults by customers. There are different types of factoring arrangements depending on whether the firm retains liability for unpaid receivables. The key entities involved are the client firm, its customers who owe payment, and the factor.
The document provides information about factoring and HSBC's factoring services. It defines factoring as the financial transaction where a business sells its accounts receivable to a third party called a factor. It then discusses the key parties and processes involved in factoring transactions, as well as the types of factoring services offered by HSBC, including domestic and international factoring. HSBC aims to be an active partner in managing customers' supply chains and receivables through these factoring products.
The document discusses key aspects of secondary markets. It defines secondary markets as markets where securities are traded after being initially offered to the public in primary markets. The majority of trading occurs in secondary markets, which comprise equity and debt markets. Secondary markets offer both sellers and buyers advantages, such as sellers recouping a portion of the original purchase price, though they can also reduce sales for original sellers. Key products traded in secondary markets include equity shares, government securities, debentures, and bonds.
This document provides an introduction and overview of a research project on comparative analysis of mutual fund schemes. It includes sections on the certificate, declaration, acknowledgement, index, and beginning of the introduction. The introduction provides background on mutual funds in India, including the structure of the Indian financial system and history of the mutual fund industry. It discusses advantages of mutual fund investment, importance of mutual funds, types of mutual funds, and risks associated with mutual funds.
This document provides an overview of capital markets, including the primary and secondary markets. It defines capital markets as markets for trading long-term investment instruments like bonds and stocks. The primary market involves new securities being issued, while the secondary market is where existing securities are traded. Key participants in the secondary market are stock exchanges, clearing corporations, and brokers. The Securities and Exchange Board of India (SEBI) regulates capital markets and aims to protect investors while promoting fair practices.
The document discusses capital markets and the roles of primary and secondary markets. It defines capital markets as markets for trading long-term investment instruments like bonds and stocks. The primary market involves new issuances of securities to raise capital, while the secondary market allows existing securities to be traded among investors, bringing liquidity. SEBI regulates India's capital markets to protect investors, curb fraud, and promote fair and efficient functioning of the markets.
The capital market is where long-term investment instruments like stocks, bonds, and mortgages are traded. It connects investors with surplus funds to those who need funds. The capital market trades both long-term and short-term financial instruments like equities, bonds, insurance products, currencies, and derivatives. It helps companies and governments raise cash by selling securities and allows investors to invest their excess funds and earn returns while channeling funds from savers to borrowers. The primary market involves new security issues being sold for the first time, while the secondary market involves the subsequent trading of existing securities.
The primary market involves the initial sale of securities to investors, allowing companies to raise capital directly. It has no single location and uses various methods like public issues and private placements. The secondary market involves subsequent trading of existing securities between investors through stock exchanges. It provides liquidity for securities and encourages new investment in companies. Some key differences are that the primary market deals with new issues while the secondary market trades existing securities in a centralized location like an exchange.
The primary market refers to the market for new issues of securities. Companies raise funds directly from investors through primary market mechanisms like initial public offerings, rights issues, and preferential allotments. The primary market allows small and medium businesses to raise money from the public and accelerates capital formation. It consists of new equity capital being issued for the first time. The secondary market refers to the subsequent trading of existing securities between investors. The major difference is that primary market issues are new securities offered by companies, while secondary market involves trading of existing securities between investors.
The primary market deals with the issuing of new securities by companies, governments, or public institutions to raise funds. This is typically done through an investment bank or syndicate of securities dealers through processes like initial public offerings (IPOs) of stock, follow-on public offerings (FPOs), private placements, rights issues, and bonus issues. The primary market creates long-term instruments through which corporate entities can borrow capital. It allows companies to attract new capital, transfer assets into financial assets, and invest money for short or long term goals.
The document provides an overview of the derivatives market in India. It discusses key concepts like forwards, futures, options, and swaps. It outlines the evolution of the derivatives market in India, from the first steps taken in 1995 to remove prohibitions on options trading, to the establishment of a regulatory framework by SEBI and the launch of index futures and options trading on exchanges like NSE and BSE in 2000. The needs served by derivatives markets are also summarized, such as risk transfer, price discovery, and increasing market volumes. Common participants like hedgers, speculators, arbitrageurs and spreaders are defined. Examples of popular derivatives products available on Indian exchanges are also provided.
The financial system of a country is crucial to its economic development by providing necessary financial inputs. It consists of institutions that mobilize savings from surplus units and transfer them to deficit units through financial markets and services. Financial markets can be classified as money markets which deal in short term assets, and capital markets which include primary markets for new securities and secondary markets for existing securities. Together these markets and their instruments such as shares, bonds, and deposits help circulate funds in an economy.
The document provides an overview of the Indian capital market. It discusses key concepts like primary and secondary markets, types of financial instruments traded (equity shares, bonds, etc.), participants (issuers, investors, intermediaries), regulatory body SEBI and its roles, sources of long-term financing like equity, debt, retained earnings, and venture capital. The capital market helps raise long-term funds for businesses and channels savings of individuals into productive investments. SEBI regulates and develops the capital market to protect investors and ensure its orderly functioning.
This document discusses derivative instruments such as futures and forwards. It defines derivatives as instruments whose value is derived from an underlying security such as a stock, commodity, currency, or index. Future contracts obligate the buyer and seller to transact at a predetermined price on a future date, while forward contracts are similar but not standardized. Reasons for using derivatives include hedging against volatility and speculation. Key concepts discussed include short selling, holding long positions, and offsetting forward contracts before expiration to realize gains or losses.
Presentation on Brief introduction to Indian financial markets (Indian Financial System). This presentation broad classification of the financial system into financial institutions, financial markets, financial instruments and financial services.
Clearing and settlement involves matching trades, determining obligations, and exchanging securities for cash. It is facilitated by clearing members, clearing banks, depositories, and the clearing corporation. Key risks include counterparty default and liquidity issues. The clearing corporation manages these risks through activities like trade confirmation, multilateral netting to determine obligations, collecting margins, and imposing limits. It acts as the central counterparty to assume default risk and ensure settlement is completed as required by market rules.
The document provides an overview of how stock exchanges work. It discusses that a stock exchange is a regulated market where brokers can buy and sell stocks, bonds, and other securities. It also describes the two phases of trading that occur - brokers first execute orders for their clients, then securities and cash are exchanged between traders using clearing houses and depositories. The document then discusses different types of trading systems, order types, speculators, and the basic process an investor follows to trade securities through a broker.
The document provides information about the Indian financial system and markets. It discusses:
1) The nature and functions of financial markets, which provide a mechanism for trading financial assets and claims, and help promote savings and investment.
2) The key components of the Indian financial system - financial assets/instruments, financial institutions, and financial markets (money markets and capital markets).
3) The roles and participants in the primary and secondary markets. The primary market provides channels for new securities issues, while the secondary market facilitates trading of existing securities and promotes liquidity and price discovery.
The document provides an overview of the Indian financial system. It discusses the key components of the financial system including financial assets, institutions, markets, and their various functions. It describes the major financial institutions in India like banks, mutual funds, insurance companies. It also explains various financial instruments in the money market and capital market that enable raising and deployment of funds. The document presents diagrams to illustrate the structure and flow of funds within the Indian financial system.
This document discusses factoring, which is an arrangement where a firm sells its receivables to a financial institution called a factor. The factor then provides financing to the firm, maintains accounts/ledgers related to receivables, collects on receivables from customers on behalf of the firm, and assumes the risk of payment defaults by customers. There are different types of factoring arrangements depending on whether the firm retains liability for unpaid receivables. The key entities involved are the client firm, its customers who owe payment, and the factor.
The document provides information about factoring and HSBC's factoring services. It defines factoring as the financial transaction where a business sells its accounts receivable to a third party called a factor. It then discusses the key parties and processes involved in factoring transactions, as well as the types of factoring services offered by HSBC, including domestic and international factoring. HSBC aims to be an active partner in managing customers' supply chains and receivables through these factoring products.
Bill discounting allows banks to purchase bills or notes from customers before their maturity and credit the discounted value to the customer's account. It provides working capital financing to the customer. Factoring involves the ongoing assignment of accounts receivable invoices from a client to a factoring company, which provides working capital financing, invoice collection services, and accounts receivable management. Forfaiting involves the discounted purchase of medium-term bills of exchange associated with international trade transactions by a forfaiter, typically with tenors of 6 months to 10 years.
Factoring is the sale of accounts receivable (book debts) by a firm to a financial institution called a factor. The factor provides upfront cash payment for the receivables, usually 80%, and assumes responsibility for collecting payment from customers and managing credit risk. Factoring provides firms with working capital and credit protection. It involves three main parties - the client firm, its customers, and the financial institution factor. Factoring has grown in importance globally as a source of trade financing and working capital for businesses.
The capital market allows investors to trade investment instruments like stocks and bonds. It serves as a marketplace to transfer funds from investors with surplus capital to those with a deficit. The capital market has two main segments - the primary market where new stock issues are sold, and the secondary market where existing securities are traded, mainly on a stock exchange, to provide liquidity. Investment in the capital market faces risks from stock price volatility and interest rate fluctuations that impact bond prices.
The capital market allows investors to trade various investment instruments like bonds, equities, and mortgages. It connects investors with surplus funds to those with deficits, providing long-term and overnight funding. Financial instruments traded include equities, credit products, insurance, foreign exchange, hybrids, and derivatives. The capital market has two main segments - the primary market where new securities are issued, and the secondary market where existing securities are traded, creating liquidity.
The document discusses various aspects of new issue markets, including the meaning, functions, and methods of floating new issues. It describes the main functions of new issue markets as facilitating the transfer of resources from savers to users and mobilizing funds from savers to borrowers. The key methods of floating new issues discussed are public issues, rights issues, private placements, and preferential issues. It also covers various other topics related to new issue markets such as pricing of issues, offer documents, listing of securities, and participants in securities markets.
The document discusses India's money markets and the key participants and instruments within it. It notes that the main participants are the government, central bank, banks, financial institutions, and corporations. The key money market instruments discussed are treasury bills, commercial paper, certificates of deposits, and money market mutual funds. It also describes the organized and unorganized sectors of the Indian money market as well as some weaknesses such as an underdeveloped bill market and lack of integration between segments.
The document discusses the Indian financial system. It defines a financial system as the institutions and markets that facilitate trading of money and monetary assets. A financial system mobilizes savings and promotes investment through financial markets. It also provides liquidity and intermediates between lenders and borrowers. The key functions of financial markets are to facilitate the transfer of funds, enable price discovery of financial assets, provide liquidity, and reduce transaction costs. Financial markets can be classified based on the type of financial claim, maturity of claims, whether they involve new or outstanding issues, timing of delivery, and organizational structure.
The document provides an overview of primary, secondary, money, and capital markets in India. It defines each market and describes their key functions and components.
The money market deals in short-term loans up to one year, and includes instruments like treasury bills, commercial papers, and certificates of deposit. The capital market deals in long-term financial assets over one year, and has primary and secondary segments. The primary market involves new issuances of securities, while the secondary market is for trading existing securities. Regulators like SEBI and institutions like stock exchanges govern the functioning of these markets in India.
This document provides an overview of financial markets and the primary market. It defines financial markets as the institutional arrangement for dealing in financial assets and instruments. It then classifies financial markets into organized and unorganized markets. The organized market includes the capital market, which deals in long-term securities, and the money market, which deals in short-term securities. Within the capital market, it describes the primary market, where new securities are issued, and the secondary market, where existing securities are traded. It provides details on the key players and functions in the primary market, including origination, underwriting, and distribution of new securities.
The document provides an overview of the Indian capital market and its key components. It discusses the money market and capital market, their differences, and the major participants in each. It then covers the functions and growth of the Indian capital market, including the role of the primary and secondary markets, key reforms over time, and various regulatory bodies.
The document defines the money market as a market for short-term financial assets that are close substitutes for money, facilitating exchange in the primary and secondary markets. It deals with lending and borrowing of funds with maturities of less than one year. The money market includes various instruments like treasury bills, commercial papers, certificates of deposit, and banker's acceptances. It comprises several sub-markets and plays an important role in facilitating short-term financing for trade, industry and banks, as well as aiding monetary policy transmission and government borrowing. Key segments discussed include the inter-bank call money market, certificate of deposits, commercial papers and treasury bills.
The document defines financial markets as places where those wanting to borrow money are brought together with those having surplus funds. It discusses the location and objectives of financial markets such as mobilizing savings, investment, entrepreneurial growth and national growth. The key functions of financial markets are intermediary functions like facilitating resource transfer, enhancing income and ensuring productive usage of funds as well as financial functions like provision of funds and earning assets. Money markets deal in short term funds and financial assets with maturity up to one year, while capital markets facilitate borrowing and lending of long term funds.
This presentation is about Indian Financial System. It includes introduction about financial system and then it includes classification of financial market.
This document provides an overview of the Indian capital market, including its key participants and regulatory structure. It discusses the primary and secondary markets, as well as the money and capital markets. It outlines the historical regulatory framework, including the Capital Issues Control Act, Companies Act, and Securities Contracts Regulation Act. It then describes the establishment of the Securities and Exchange Board of India (SEBI) in 1992 and its role in integrating regulation, liberalizing the market, and improving transparency and investor protection through new guidelines.
The document discusses the macro economic environment and financial markets in India. It describes the money market and its components like call money, treasury bills, commercial bills, and commercial paper. It also discusses the organized and unorganized segments of the money market. The capital market is described along with the gilt-edged market and corporate securities market. Reforms to strengthen the capital market are also summarized.
The document discusses the Indian financial system, including the formal financial system which is regulated by entities like the Ministry of Finance, Reserve Bank of India, and Securities and Exchange Board of India, as well as the informal financial system consisting of individual money lenders and non-bank financial intermediaries. It also describes various financial markets and instruments in India like equity shares, bonds, and government securities, as well as major stock exchanges like the Bombay Stock Exchange and National Stock Exchange.
The document provides an overview of financial markets and their components. It defines money markets as short-term security markets and capital markets as long-term security markets. It describes various money market instruments like treasury bills, commercial papers, certificates of deposits. It discusses the primary and secondary markets in capital markets. It also outlines the roles and functions of stock exchanges, depository services, and the Securities and Exchange Board of India (SEBI).
The document discusses the secondary market in India, which refers to the market where securities are traded after their initial public offering. It describes the key products traded in the secondary market such as equity shares, bonds, and debentures. It also discusses the role of the Securities and Exchange Board of India (SEBI) in regulating the secondary market and protecting investors. SEBI oversees various departments that regulate trading activities and registration of brokers, sub-brokers, and other market intermediaries.
The Indian money market involves the lending and borrowing of short-term funds less than one year. It includes a variety of financial instruments like treasury bills, commercial paper, certificates of deposit, and repos that are traded by banks, corporations, mutual funds, and other entities. The Reserve Bank of India plays a key role in regulating the money market and influencing liquidity and interest rates through tools like CRR, SLR, and repo rates to align with monetary policy objectives like price stability. The structure of the Indian money market comprises organized sectors of banks, development banks, and financial institutions as well as unorganized money lenders and cooperative sectors.
Capital Markets Development in Bangladesh: The Status of Dhaka Stock ExchangeZafour
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The document summarizes the status of the Dhaka Stock Exchange (DSE) in Bangladesh. It provides background on the establishment of DSE in 1964 and its growth over time. DSE now has 378 listed securities and four markets - public, spot, block, and odd lot. However, DSE faces challenges like price manipulation, delays in settlement, and lack of proper financial reporting by some listed companies. To improve the stock exchange, suggestions include enforcing transparency in company reporting, monitoring for malpractices, introducing electronic settlement systems, and encouraging other financial institutions to participate directly in share trading. Overall capital market development in Bangladesh aims to strengthen regulation, modernize infrastructure, and increase the supply of quality securities.
The document provides an overview of the Indian financial system, including its evolution, structure, and key components. It discusses the various financial markets and instruments in India as well as the regulatory bodies that oversee the financial system. The organized Indian financial system consists of money markets, capital markets, foreign exchange markets, and credit markets. Key reforms since the 1990s have aimed to make the system more efficient, competitive, and integrated.
The document provides an overview of the capital market in India. It defines the capital market and discusses its key elements - financial assets/instruments, financial intermediaries, and financial markets. It describes the primary and secondary markets. It notes that the Indian economy and capital markets have grown rapidly in recent decades. Regulations have also improved, making the Indian capital market one of the best regulated in the world.
The document discusses the introduction of online trading in India by the Securities and Exchange Board of India (SEBI) to reduce uncertainty in the capital market. It aims to study the effect of this transition from an outcry to online trading system on SSKI Ltd. Specifically, the objectives are to analyze changes in trading, study SSKI's departments and functions, understand their online trading system, and examine the impact of changing technology and trends on investors, brokers, and the market. The scope is limited to reviewing SSKI's online trading procedures. It collects primary data from SSKI members and secondary data from publications. The study is confined to the past 2-3 years.
The document discusses the Indian debt market, including government securities market and bond market. It describes the major participants which include central/state governments, banks, financial institutions, companies, and individual investors. It also covers the primary and secondary market structures, issuance and trading processes, clearing and settlement procedures, and debt instruments like STRIPS. The debt market plays a key role in India by facilitating resource mobilization and supporting government/corporate financing needs.
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Microsoftโs Digital Transformation Framework
McKinseyโs Ten Guiding Principles of Digital Transformation
Forresterโs Digital Transformation Framework
IDCโs Digital Transformation MaturityScape
MITโs Digital Transformation Framework
Gartnerโs Digital Transformation Framework
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Design Thinking Framework
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1. Ch. 1 Capital Market
10%
๏ถMeaning
๏ถImportance of Indian C.M.
๏ถStructure of Indian C.M.
๏ถRecent Trends in Indian C.M
Mayur Patel(NIM BBA College)
4. Meaning of Capital Market
๏ A capital market is a market for securities (debt or
equity), where business enterprises (companies)
and governments can raise long-term funds.
๏ It is defined as a market in which money is
provided for periods longer than a year, as the
raising of short-term funds takes place on other
markets (e.g., the money market).
๏ Capital Market basically means a market in which
financial securities are traded between individuals
or institutions.
๏ Capital markets may be classified as primary
markets and secondary markets. In primary
markets, new stock or bond issues are sold to
investors. In the secondary markets, existing
securities are sold and bought among investors
or traders, usually on a securities exchange, over-
the-counter, or elsewhere.
4 Stock Exchange & Portfolio Management(SEPM) BY-Mayur Patel
5. SEBI
CAPITAL MONEY
MARKET MARKET
PRIMARY SECONDARY
MARKET MARKET
Stock Exchange & Portfolio
5 Management(SEPM) BY-Mayur Patel
6. Indian Capital markets - Chronology
๏ 1994-Equity Trading commences on NSE
๏ 1995-All Trading goes Electronic
๏ 1996- Depository comes in to existence
๏ 1999- FIIs Participation- Globalisation
๏ 2000- over 80% trades in Demat form
๏ 2001- Major Stocks move to Rolling Sett
๏ 2003- T+2 settlements in all stocks
๏ 2003 - Demutualisation of Exchanges
Stock Exchange & Portfolio
6 Management(SEPM) BY-Mayur Patel
7. Importance/Significance/ Role of
Indian Capital Market
๏ Mobilization of Savings &
acceleration of Capital Formation
๏ Promotion of Industrial Growth
๏ Raising of long term Capital
๏ Ready & Continuous Markets
๏ Proper Channelisation of Funds
๏ Use of updated technology is
possible
7 Stock Exchange & Portfolio Management(SEPM) BY-Mayur Patel
8. CLASSIFICATION OF FINANCIAL MARKETS
Classificati
on of
financial
markets
Organized
Markets Unorganiz
ed Markets
Money
lenders, In
Capital Money
digenous
Market Market
bankers, et
c
Call Money Market,
Industrial Govt. Long term
Commercial bills
Securities Securities Loan
Treasury Bills
markets Market Market
Short term loan market
Market for
Primary Secondary Term Loan Financial Market for
Market market market Guarantee Mortgages
s
Stock Exchange & Portfolio
8 Management(SEPM) BY-Mayur Patel
9. ORGANIZED MARKET
๏ฑ Standardized rules and regulations governing their financial dealings.
๏ฑ A high degree of institutionalization and instrumentalisation.
๏ฑ Subject to strict supervision and the control by the RBI or other regulatory
bodies.
๏ฑ Can be further divided into two:
A) Capital market
B) Money market
A) CAPITAL MKT:
Is a market for financial assets which have a long or indefinite maturity.
Generally deals with long term securities.
Divided into three:
1)Industrial securities market
2) Government securities market
3) Long term loans market
Stock Exchange & Portfolio
9 Management(SEPM) BY-Mayur Patel
10. CAPITAL MARKET
1) Industrial securities market:
๏ A market for industrial securities namely, equity shares, preference
shares, debentures or bonds.
๏ further can be divided in Two:
a) Primary market: - Public issues, Rights issues, Private
placement
b) Secondary market:
2) Govt securities market:
๏ Called Gilt edged securities market.
๏ Its a market where Govt securities are traded.
๏ - Short term(traded in money market) and long term(traded here).
๏ Securities issued by the Central Government, State Govt., Semi-govt
authorities like City Corp., Port trusts, etc. Improvement Trusts, State
Electricity Boards
๏ Issued in denominations of 100s
Stock Exchange & Portfolio Commercial Banks for SLR requirement,
๏ Major participants:
10 Management(SEPM) BY-Mayur Patel
๏ Secondary market very narrow
11. CAPITAL MARKET
3) Long- term Loans Market
๏ MAJOR PARTICIPANTS : Development Banks and commercial
banks
๏ Can be further divided into three:
i) Term- loans market
To supply long term and medium term loans to corporate
customers
Institutions like IDBI, ICICI, IFCI
ii) Mortgages Market
Is a loan against security of immovable property like real
estate.
Transfer of interest in a specific immovable property to
secure a loan is called mortgage
Stock Exchange & Portfolio
11 Management(SEPM) BY-Mayur Patel
12. CAPITAL MARKET
๏ iii) Financial Guarantee Market:
๏ Finance provided against guarantee of a reputed person in
financial circle
๏ Guarantee: A contract to discharge the liability of third party in
case of his default
๏ Acts as a security from the creditors point of view.
๏ Financial guarantee in India relates to
๏ Deferred payments for imports and exports
๏ Medium and long term loans raised abroad
๏ Loans advanced by banks and other FIs
๏ Guarantees provided by commercial banks, development
banks, Governments and other specialized institutions like
ECGC(Export Credit Guarantee Corp.) and DICGC (Deposit
Insurance and Credit Guarantee Corp.)
Stock Exchange & Portfolio
12 Management(SEPM) BY-Mayur Patel
13. Reforms in Indian Capital Market
Since 1992
๏ Capital Issues (Control) Act of 1947 repealed and the
office of Controller of Capital Issues abolished; control
over price and premium of shares removed.
Companies now free to raise funds from securities
markets after filing prospectus with the Securities and
Exchange Board of India (SEBI).
๏ The power to regulate stock exchanges delegated to
SEBI by the Government.
๏ SEBI introduces regulations for primary and other
secondary market intermediaries, bringing them within
the regulatory framework.
13 Stock Exchange & Portfolio Management(SEPM) BY-Mayur Patel
14. Reforms in Indian Capital Market
Since 1992
๏ SEBI introduces a code of advertisement for public
issues to ensure fair and truthful disclosures.
๏ Disclosure norms further strengthened by introducing
cash flow statements.
๏ New issue procedures introducedโbook building for
institutional investorsโaimed at reducing costs of
issue.
๏ SEBI reconstitutes the governing boards of the stock
exchanges and introduces capital adequacy norms for
broker accounts.
๏ Private mutual funds permitted and several such
Stock Exchange & Portfolio set up. All mutual funds allowed to
funds already
14 Management(SEPM) BY-Mayur Patel
apply for firm allotment in public issuesโalso aimed
15. Reforms in Indian Capital Market
Since 1992
๏ Over-the-Counter Exchange of India formed.
๏ National Stock Exchange (NSE) establishment as a stock
exchange with nationwide electronic trading.
๏ Bombay Stock Exchange (BSE) introduces screen-based
trading; 15 stock exchanges now have screened-based trading.
BSE granted permission to expand its trading network to other
centers.
๏ Capital adequacy requirement for brokers enforced.
๏ System of mark-to-market margins introducedin the stock
exchanges.
๏ Stock lending scheme introduced.
๏ Transparency brought out in short selling.
Stock Exchange & Portfolio
15 Management(SEPM) BY-Mayur Patel
16. Reforms in Indian Capital Market
Since 1992
๏ National Securities Clearing Corporation, Ltd. set up
by NSE.
๏ SEBI strengthens surveillance mechanisms and
directs all stock exchanges to have separate
surveillance departments.
๏ SEBI strengthens enforcement of its regulations.
๏ The Depositories Act enacted to facilitate the
electronic book entry transfer of securities through
depositories.
๏ Guidelines for Offshore Venture Capital Funds
announced. SEBI regulations for venture capital funds
Stock Exchange & Portfolio
16 become effective.
Management(SEPM) BY-Mayur Patel
17. Recent Trends in Indian Capital
Market
๏ Introduction of Derivative products - Index / Stock
Futures & Options
๏ Margin Lending
๏ Securities Lending
๏ Institutionalization โmajor role โ MF/FI/FII/VCF/ -
pressure on the company to perform/disclosure.
๏ Globalization โ opening of market to overseas player -
E.g. FDI/portfolio management for FII/NRI etc. Indian
corporate also access overseas market.
Stock Exchange & Portfolio
17 Management(SEPM) BY-Mayur Patel
18. Recent Trends in Indian Capital
Market
๏ Four products rolled out- Index / Stock - Futures &
Options
๏ Margining System - VAR based / Market wide limits
๏ Client level computation of positions & margining
๏ Emergence of institutions โ
SEBI/NSE/NSDL/CDSL/CCIL etc.
๏ Modernization โ use of technology for
trading/clearing/settlement etc. Role of IT for
clearing, settlement, monitoring etc
Stock Exchange & Portfolio
18 Management(SEPM) BY-Mayur Patel
19. Recent Trends in Indian Capital
Market
๏ 1994-Equity Trading commences on NSE
๏ 1995-All Trading goes Electronic
๏ 1996- Depository comes in to existence
๏ 1999- FIIs Participation- Globalisation
๏ 2000- over 80% trades in Demat form
๏ 2001- Major Stocks move to Rolling Sett
๏ 2003- T+2 settlements in all stocks
๏ 2003 - Demutualisation of Exchanges
Stock Exchange & Portfolio
19 Management(SEPM) BY-Mayur Patel