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Unit_1_Indian_Financial_System B.Com_PPT.pptx
- 1. Unit I: IndianFinancial System • Course 14: Financial Markets • Semester V – B.Com • Introduction and Overview
- 2. Introduction to FinancialSystem • Definition, Scope and Importance of Financial System in Economy
- 3. Functions of FinancialSystem • Mobilization of Savings • Capital Formation • Facilitating Investments • Risk Management • Efficient Payment Mechanism
- 4. Structure of IndianFinancial System • 1. Financial Institutions • 2. Financial Markets • 3. Financial Instruments • 4. Financial Services
- 5. Components: Financial Institutions •Banking Institutions: • - RBI • - Commercial Banks • - Cooperative Banks • Non-Banking Institutions: • - LIC • - UTI • - Development Banks
- 6. Reserve Bank ofIndia (RBI) • Role as Central Bank • Functions: Monetary Authority, Regulator, Issuer of Currency
- 7. Commercial Banks • AcceptingDeposits • Providing Loans • Facilitating Payments
- 8. Development Banks • Purpose:Long-term financing for industrial and infrastructure development
- 9. Non-Banking Financial Companies (NBFCs) •Provide financial services without banking license
- 10. Financial Markets: Introduction •Market where financial instruments are traded • Divided into Money Market & Capital Market
- 11. Money Market vsCapital Market • Money Market: Short-term funds (<1 year) • Capital Market: Long-term funds (>1 year)
- 12. Money Market Instruments •Treasury Bills • Commercial Papers • Certificates of Deposit
- 13. Capital Market Instruments •Equity Shares • Debentures • Bonds • Preference Shares
- 14. Primary and SecondaryMarket • Primary: New securities issued • Secondary: Trading of existing securities
- 15. Financial Instruments: Definition •Contracts for financial asset transfer • Types: Equity, Debt, Derivatives
- 16. Equity Instruments • Sharesand Stock • Ownership in Company • Voting Rights
- 17. Debt Instruments • Debentures,Bonds • Fixed Return Instruments
- 18. Hybrid Instruments • Combinationof debt and equity: Preference Shares, Convertible Debentures
- 19. Financial Services: Introduction •Services provided by financial institutions to facilitate financial transactions
- 20. Types of FinancialServices • Banking • Insurance • Leasing • Mutual Funds • Investment Services
- 21. Mutual Funds • Poolingof investor money into diversified portfolio
- 22. Insurance Services • Lifeand General Insurance • Risk Coverage and Premium
- 23. Leasing and HirePurchase • Asset financing services • Used for vehicles, machinery
- 24. Factoring and Forfaiting •Factoring: Invoice discounting • Forfaiting: Export bill financing
- 25. Credit Rating Services •Evaluate creditworthiness of borrowers and instruments
- 26. Role of SEBI •Regulation of capital markets • Protecting investor interests
- 27. Financial Sector Reforms •Post-1991 liberalization reforms • FDI policies • Banking sector revamp
- 28. Challenges in IndianFinancial System • Financial Inclusion • Non-performing Assets • Regulation Gaps
- 29. Future of IndianFinancial System • Digitalization • FinTech growth • Inclusive Finance
- 30. Conclusion • A soundfinancial system is backbone of economic growth
- 31. References • 1. L.M.Bhole – Financial Institutions & Markets • 2. Shashi K. Gupta – Financial Institutions • 3. Clifford Gomez – Financial Markets