This presentation is on Credit rating agencies in India. here I presents it's origin, importants, benefits, objectives, need and about different rating agencies.
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.
Financial Markets - Money market-Organized and Unorganized-Sub markets
Capital market- Primary market-IPO-FPO- NFO, Book Building-Right Issue-Private placement- Bonus issue-Buyback
Secondary Market-Stock exchanges- Role and functions of Stock Exchanges- BSE-NSE.
Regulatory authorities and their functions – RBI, SEBI
For Videos use the links below
0 Course Introduction:: https://www.youtube.com/watch?v=9km4aXTus5c
1 Financial system and Environment : https://www.youtube.com/watch?v=BC2bAftm43c
2 Participants in a Financial System: https://www.youtube.com/watch?v=IEv_y7_aR7o
3 Functions of a Financial System: https://www.youtube.com/watch?v=T73-Dd8RM4I
4 Financial System and its components: https://www.youtube.com/watch?v=ovkAjEO8YAw
5 Efficiency of a financial system: https://www.youtube.com/watch?v=8xEUtvKYvPc
This presentation is on Credit rating agencies in India. here I presents it's origin, importants, benefits, objectives, need and about different rating agencies.
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.
Financial Markets - Money market-Organized and Unorganized-Sub markets
Capital market- Primary market-IPO-FPO- NFO, Book Building-Right Issue-Private placement- Bonus issue-Buyback
Secondary Market-Stock exchanges- Role and functions of Stock Exchanges- BSE-NSE.
Regulatory authorities and their functions – RBI, SEBI
For Videos use the links below
0 Course Introduction:: https://www.youtube.com/watch?v=9km4aXTus5c
1 Financial system and Environment : https://www.youtube.com/watch?v=BC2bAftm43c
2 Participants in a Financial System: https://www.youtube.com/watch?v=IEv_y7_aR7o
3 Functions of a Financial System: https://www.youtube.com/watch?v=T73-Dd8RM4I
4 Financial System and its components: https://www.youtube.com/watch?v=ovkAjEO8YAw
5 Efficiency of a financial system: https://www.youtube.com/watch?v=8xEUtvKYvPc
Beware, never use golden or yellow color in your slide cause it flashes in projector. By the way, it isn't the best work I have done but it is among my first slides so I just love it. Hope you too...
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
NO1 Uk Rohani Baba In Karachi Bangali Baba Karachi Online Amil Baba WorldWide...Amil baba
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
NO1 Uk Divorce problem uk all amil baba in karachi,lahore,pakistan talaq ka m...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
#vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore#blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #blackmagicforlove #blackmagicformarriage #aamilbaba #kalajadu #kalailam #taweez #wazifaexpert #jadumantar #vashikaranspecialist #astrologer #palmistry #amliyaat #taweez #manpasandshadi #horoscope #spiritual #lovelife #lovespell #marriagespell#aamilbabainpakistan #amilbabainkarachi #powerfullblackmagicspell #kalajadumantarspecialist #realamilbaba #AmilbabainPakistan #astrologerincanada #astrologerindubai #lovespellsmaster #kalajaduspecialist #lovespellsthatwork #aamilbabainlahore #Amilbabainuk #amilbabainspain #amilbabaindubai #Amilbabainnorway #amilbabainkrachi #amilbabainlahore #amilbabaingujranwalan #amilbabainislamabad
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
2. Meaning and Definition
Financial System is a complex, well-integrated set
of sub-systems of
Financial institution,
Markets,
Instruments, and
Services
which facilitates the transfer and allocation of funds,
efficiently and effectively.
3. Formal and Informal Financial system
Formal Financial Sector is characterized by
presence of an organized, institutional and regulated
system which caters the financial needs of the
modern spheres of the economy.
Informal Financial Sector is an unorganized,
non-institutional and non-regularized system
dealing with the traditional and rural spheres of the
economy.
4. Informal financial system
Informal Financial Sector is an unorganized,
non-institutional and non-regularized system
dealing with the traditional and rural spheres of the
economy.
Advantages: 1). Low Transaction, 2). Minimum
default risk, 3). Less of formalities, 4). Less time
consuming, 5). Fulfillment of urgent requirements.
Disadvantages: 1). Unregulated 2). High rates of
interest 3). Less transparency of procedures, 4). Rise
to black money, 5). Exploitation of victims.
5. Components of Formal Financial
System
1. Financial institutions;
2. Financial markets;
3. Financial instruments;
4. Financial services.
7. Financial Markets
Financial markets are the mechanism enabling
participants to deal in financial claims.
Literally, financial markets also provide a facility in
which their demands and requirements interact to
set a price for such claims. (D=S)
8. Types of Financial Markets
1. Money Market: a market for short-term
securities or securities with a maturity of less than
one year;
2. Capital market: A market for long-term
securities or securities with a maturity period of
one or more year.
Primary market;
Secondary market.
9. Types of the Capital Market
1. Primary market: it refers to the market:
Where securities are created/issued;
where the securities are traded for very first time;
2. Secondary market: it refers to the market where
those securities traded which have already been
issued in the primary market:
Over the counter;
Trade through stock exchanges;
10. Types of the Capital Market
Over the counter: trade thorough the direct
counters of the company or on the immediate
basis;
Trade through stock exchanges: approach to
BSE, NSE or any other stock exchange through
stock brokers or agents of registered broking
companies.
11. Types of the Capital Market
Stock brokers or agents of registered broking
companies: these are the individuals, companies
or the institutions registered with SEBI (1992)
and are authorised to sale and purchase of
securities or the financial assets.
Share khan, Religare and Unicorn etc.
12. 3. Financial Instruments
Financial asset or the financial instrument is
the claim of money, against a particular person or
institution, at a future date, for a specific amount;
A financial asset may also include the claim of
periodic payment in form of interest or dividend,
Implies Debentures, shares, bonds and notes;
1. Primary securities: Equity, Debentures;
2. Secondary securities: Bank deposits, Insurance
policies and Mutual funds.
13. Financial
Services
Financial facilitate the
ease of:
1. Borrowing and funding;
2. Lending and investing;
3. Buying and selling;
4. Making and enabling
payments and settlements;
5. Managing risk and
exposures;
Need for Financial Services
14. Categories of Financial
Services
1. Fund intermediation:
2. Liquidity facility:
3. Payment mechanism:
4. Risk management:
5. Financial engineering is the application of
mathematical methods to the solution of problems
in finance. It is also known as financial
mathematics, mathematical finance, and
computational finance.
15. Functions of a Financial
System
Mobilize and allocate savings;
Monitor corporate performance;
Provide payment and settlement system;
Optimum allocation of risk bearing and reduction;
Disseminate price related information;
Offer portfolio adjustment facility;
Lower the cost of transactions;
Promote the process of financial deepening of
broadening. Financial Deepening: It refers to the increased
provision of financial services with a wider choice of
services geared to all levels of society.
16. Financial System and
Economic
Increase in rate of saving and investments;
Increase in the productivity and production;
Growth in GDP and GNP of India;
Helps in capital formation;
Utilization of idle funds;
Maintains circular flows in economy;
Increase transparency and reduce risk of several
defaults.
Improvement in living standard;
18. Meaning and Definition
Money market refers to the market for financial
assets that are close substitutes for money;
It is the market for overnight to short-term funds
and instruments;
Instrument having maturity period of one or less
than one year.
19. Functions of money market
• Money market is generally expected to perform
three broad functions:
1. Provide balancing mechanism to even out the
demand for and supply of short term funds;
2. Provide a focal point for central bank intervention
for influencing liquidity and general level of
interest rates in the economy;
3. Provide reasonable access t suppliers and users of
short term funds to fulfill their borrowings and
investment requirements at an efficient and market
clearing price.
20. Role of Reserve Bank of India in The Money
Market
Money market comes under the direct purview of
Reserve Bank of India;
The aims of RBI’s operations in the money market
are:
1. To ensure that liquidity and short term interest
rates are maintained at levels consistent with the
monetary
2. objectives of maintaining price stability;
3. To bring about order in foreign exchange market;
Tools of RBI: CRR, SLR and open market operations etc.
22. Money Market Instruments
1. Treasury bills are short-term instruments used by
the government to raise short-term funds;
• Negotiable securities;
• Highly liquid;
• No default risk;
• Assured yield, low transaction cost, inclusion in SLR
limit;
• Transacted through SGL account and not issued as a
scrip;
• Maturity periods are: 91-days, 181-days and 364-days;
• Min. amount of 25,000Rs. And multiples of the same.
• Categorized as: On-tap, auctioned and Adhoc T-bills.
23. Money Market Instruments
2. Call money: commercial banks borrow money
from other banks to maintain minimum cash
balance known as cash reserve ratio (CRR);
Maturity: over the night;
Rating:
Denomination: not specified or equal to NDTL;
Raised by: commercial banks;
Related term: notice money and term money.
24. Money Market Instruments
3. Notice Money: commercial banks borrow money
cashfrom other banks to maintain minimum
balance known as cash reserve ratio (CRR);
Maturity: 1 day to 14 days;
Rating:
Denomination: not specified;
Raised by: commercial banks;
Related term: call money and term money.
25. Money Market Instruments
4. Term money: commercial banks borrow money
from other banks to maintain minimum cash
balance known as cash reserve ratio (CRR);
Maturity: 15-364 days;
Rating:
Denomination: not specified;
Raised by: commercial banks;
Related term: notice money and call money.
26. Money Market Instruments
5. Commercial papers (CP-1990) is an unsecured
short-term promissory note issued at a discount by
creditworthy corporate, primary dealers and all-
Indian financial institution.
maturity: 7 days – 364 days;
Rating: P series of CRISIL;
Denomination: 5 lac and multiples;
Investment through: demat account.
27. Money Market Instruments
6. Certificates of deposits(CD-1989) are short-
term tradable time deposits issued by commercial
banks and financial institutions;
Maturity:7 days to 1 year for banks but 1-3 years for
FIs ;
Rating:
Denomination: 1 lakh and multiples;
Issued by: financial institutions.
Related term: it is same as FD but freely
transferable and tradable unlike the FD.
28. Money Market Instruments
7. Commercial bills (CB) are negotiable instruments
drawn on the seller by the buyer, in turn, accepted and
discounted by commercial banks;
1. Features of commercial bills:
Maturity: 30, 60,90 days usually;
Rating:
Denomination: not specified-can be any amount;
Discounted through: Commercial banks;
some time also known as trade bills; but known as the
commercial bill when discount by the bank.
30. Meaning and Definition
Capital market is a market where securities with
the long tenure are bought and sold such as equity
and debt, funds are raised for long period;
31. Types of the Capital Market
1. Primary market: it refers to the market:
Where securities are created/issued;
where the securities are traded for very first time;
2. Secondary market: it refers to the market where
those securities traded which have already been
issued in the primary market:
Over the counter;
Trade through stock exchanges;
32. Role of capital markets in the
growth of economy
It helps in economic growth of a country by
mobilizing the savings and direct is to the right way
for more productive uses:
Directs cash from deficit sector to the surplus sector:
issue of securities in the primary; domestic,
government, corporate sector.
direct cash from the surplus sector to the financial
intermediaries: issue of the secondary in the primary
market;
Facilitation of the liquidity: resale and repurchase of
the financial assets through the secondary market.
33. Components of Capital Market
1. Primary market: it refers to the market where
financial securities are created/issued and sold for
very first time; it serves the mobilization function
and capital creation/formation function;
2. Secondary market: it refers to the market where
those financial securities are re-bought and re-sold
which have already been issued and sold in primary
market; it facilitates the liquidity function.
Hence, primary market is for the new issues and
secondary market is for the outstanding or the
existing issues;
34. Methods of Issuing Equity in
Primary Market
1. Public issues through prospectus: IPOs, FPOs;
2. Private placement;
3. Right issues;
4. Preferential issues;
35. Secondary Market
Secondary market: it refers to the market where
those financial securities are re-bought and re-sold
which have already been issued and sold in primary
market; it facilitates the liquidity function.
36. Functions of The Secondary Market
1. Facilitates liquidity and marketability of securities;
2. Provides valuation of securities;
3. Reduces cost of capital;
4. Enable price discovery;
5. Creates a wealth effect;
37. Indian Financial System-
History
Pre 1951
1. Control of Money Lenders
2. No Laws / Total Private Sector
3. No Regulatory Bodies
4. Hardly any industrialization
5. Banks – Traditional lenders for Trade and that too short
term
6. Main concentration on Traditional Agriculture
7. Narrow industrial securities market (i.e. Gold/Bullion/Metal
but largely linked to London Market)
8. Absence of intermediatary institutions in long-term financing
of industry
9. Industry had limited access to outside saving/resources
38. Indian Financial System-
History
1951 to 1990
1. Moneylenders ruled till 1951. No worth-while Banks at that
time. Industries depended upon their own money.
2. 1951 onwards 5 years PLAN commenced.
PVT. SECTORS TO PUBLIC SECTOR – MIXED ECONOMY
1. 1st 5 year PLAN in 1951 – Planned Economic Process.
2. As part of Alignment of Financial Systems – Priorities laid
down by Govt. – Policies.
MAIN Elements of Fin. Organisations
1. Public ownership of Financial Institution
2. Strengthening of Institutional Structure
3. Protection to Investors
4. Participation in Corporate Management
5. Organisational Deficiencies.
39. Indian Financial System-
History
Nationalization
RBI -1948
SBI -1956 (take-over of Imperial Bank of India)
LIC -1956 (Merges of over 250 Life Insurance
Companies)
Banks -1969 (14 major banks with Deposits of
over Rs. 50Crs. nationalised) 1980 - (6 more
Banks)
Insurance -1972 (General Insurance Corp.
GIC by New India , Oriental, united and
National.
40. Indian Financial System-
History
POST 1990s
Development Financial Institutions : (DFIs)
Started providing Working Capital also
Privatization of DFI
Reduction in Govt. holding & Public Participation e.g.
IFCI Ltd., IDBI Ltd., ICICI Ltd.
Conversion into Banking / Merger into Banking
Companies IDBI Bank & ICICI Bank
Issuance of Bond by DFIs without Govt.’s Guarantees to
mobilise resources.
Reduction in holding of Govt. in Banks, i.e. Public
Participation / Listing
41. Indian Financial System-
History
INDUSTRIES
Rise & Growth of Service Sector industries.
Reliance & Dependence on technology.
E-mail & mobile made sea-change in communication, data
collection etc.
Computerization – a catch phrase and inevitable need of an hour.
Dependent on Capital Market rather than only Debts dependency.
Scalability of operations through globally competitive size.
Broad basing of Board.
Professional Management.
NBFC
NBFC under RBI governance to finance retail assets and mobilize
small/medium sized savings.
Very large NBFCs are emerging (Shri Ram Transport Finance, Birla,
Tata Finance, Sundaram Finance, Reliance Finance, DLF, Religare
etc.
42. Indian Financial System-
History
Commercial Bank
Govt. holding reduced even by up to 40%
Setting up of Universal Banks (from CASA to
Corp. Finance)
One-stop Banking.
Capital Adequacy. (Basel II accepted) 9%
Assets classification
NPA classification – substandard, Doubtful & Loss
Assets.
Focus on Non-Fund Business like L/C,
Guarantees, Acceptance, FOREX etc.
New Private Sector Banks (AXIS, YES, HDFC,
KOTAK MAHINDRA etc.)
43. 43
Indian Financial System – An Overview
STRUCTURE OF FINANCIAL MARKETS IN INDIA
Financial Markets in India
Debt
Market
Primary /
Secondary
Forex
Market
Capital
Market
Primary /
Secondary &
Depository
Insurance
Life/General
Banks
(including
RRBs, co-op
etc)
Mutual Funds,
Venture Funds,
Investment
Bonds
RBI RBI SEBI IRDA RBI RBI/SEBI
REGULATORY AUTHORITY