SlideShare a Scribd company logo
Rural Project Finance
&
Development Funding (RPFD)
Presentation
Presented by
(Group 10)
Yashi Tiwari (UR19056)
Pragati Isha (UR19084)
Praneeth Patnaik (UR19086)
Pratik Nayak (UR19087)
Shiksha Goyal (UR19099)
Content
• Capital Market
• Hedging
• Dividends
• Basel Accord
• Capital Structure
Capital Market
• Capital Market is a place where the entities engage in trading of different
financial instruments (long-term debts & equity-backed securities)
• Types of Capital Market –
a. Primary Market – For issue of new securities
b. Secondary Market – For trading of existing securities
• Functions of Capital Market –
a. Linking investors and savers
b. Boosting economic growth
c. Minimizing transaction costs and information costs
d. Derivative trading
Hedging
• Hedging is an insurance-like investment which to restrict losses which arises due to
fluctuation of price
• Reducing and eliminating the risk of uncertainties
• Used to safeguard investment from losses
• Types of Hedges
Forward Contract
Futures Contract
Money Markets
• Advantages of Hedging
used for locking profit
limits losses to a great extent
helps in increasing liquidity in financial markets
offers a flexible price mechanism
11/19/2022 5
• Dividends are typically paid on a quarterly basis,
though some pay annually, and a small few pay
monthly.
Definition
A dividend is a payment from a company to a
shareholder who has invested in shares of the
company
Non - Dividend Paying Companies
Dividend Paying Companies
• Well established
• Utility Related
• Use dividends to drive
investor interest
• electricity (ex: S&P) and
oil (ex: Chevron).
Dividends
Cash
Stock
• New, rapidly growing
• Mostly Tech based
• Rely on stock growth
• Ex. Amazon
Basel Accord
• Three series of banking regulations set by the BCBS – 1980s
• "financial stability by improving supervisory knowhow and the
quality of banking supervision worldwide“ 
“monitoring and ensuring the capital adequacy”
• Basel I – 1988 – Capital Adequacy Of Financial Institutions
• Basel II – 2004
• Three main pillars
• Minimal capital requirements,
• Regulatory supervision, and
• Market discipline
• Basel III – 2010 (Agreed) – Based on Three Pillars with added
focuses
• Regulation,
• Supervision and
Capital Structure
• Combination of debt and equity used by a company to finance its
overall operations and growth
• Debt comes in the form of bond issues or loans.
• Equity comes in the form of stocks
• Debt is a borrowed money that is needed to pay back to the lender and
comes with an interest expense
• Equity consists of ownership rights in the company without the need
to pay back any investment done
• Mostly debt to equity ratio is referred when analysing the capital
structure

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RPFD_Capital Market_Group10.pptx

  • 1. Rural Project Finance & Development Funding (RPFD) Presentation Presented by (Group 10) Yashi Tiwari (UR19056) Pragati Isha (UR19084) Praneeth Patnaik (UR19086) Pratik Nayak (UR19087) Shiksha Goyal (UR19099)
  • 2. Content • Capital Market • Hedging • Dividends • Basel Accord • Capital Structure
  • 3. Capital Market • Capital Market is a place where the entities engage in trading of different financial instruments (long-term debts & equity-backed securities) • Types of Capital Market – a. Primary Market – For issue of new securities b. Secondary Market – For trading of existing securities • Functions of Capital Market – a. Linking investors and savers b. Boosting economic growth c. Minimizing transaction costs and information costs d. Derivative trading
  • 4. Hedging • Hedging is an insurance-like investment which to restrict losses which arises due to fluctuation of price • Reducing and eliminating the risk of uncertainties • Used to safeguard investment from losses • Types of Hedges Forward Contract Futures Contract Money Markets • Advantages of Hedging used for locking profit limits losses to a great extent helps in increasing liquidity in financial markets offers a flexible price mechanism
  • 5. 11/19/2022 5 • Dividends are typically paid on a quarterly basis, though some pay annually, and a small few pay monthly. Definition A dividend is a payment from a company to a shareholder who has invested in shares of the company Non - Dividend Paying Companies Dividend Paying Companies • Well established • Utility Related • Use dividends to drive investor interest • electricity (ex: S&P) and oil (ex: Chevron). Dividends Cash Stock • New, rapidly growing • Mostly Tech based • Rely on stock growth • Ex. Amazon
  • 6. Basel Accord • Three series of banking regulations set by the BCBS – 1980s • "financial stability by improving supervisory knowhow and the quality of banking supervision worldwide“  “monitoring and ensuring the capital adequacy” • Basel I – 1988 – Capital Adequacy Of Financial Institutions • Basel II – 2004 • Three main pillars • Minimal capital requirements, • Regulatory supervision, and • Market discipline • Basel III – 2010 (Agreed) – Based on Three Pillars with added focuses • Regulation, • Supervision and
  • 7. Capital Structure • Combination of debt and equity used by a company to finance its overall operations and growth • Debt comes in the form of bond issues or loans. • Equity comes in the form of stocks • Debt is a borrowed money that is needed to pay back to the lender and comes with an interest expense • Equity consists of ownership rights in the company without the need to pay back any investment done • Mostly debt to equity ratio is referred when analysing the capital structure