financial system of india

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Presentation Transcript

Indian Financial System : 

Indian Financial System ARUN KANNAN MBA 3RD SEM

Slide 2: 


CAPITAL MARKET : 

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 PRIMARY MARKET SECONDARY MARKET

PRIMARY MARKETS : 

PRIMARY MARKETS PRIMARY MARKET : FIRST TIME SALES OF EQUITY also called the new issue market, is the market for issuing new securities. Many companies, especially small and medium scale, enter the primary market to raise money from the public to expand their businesses. They sell their securities to the public through an initial public offering.

SECONDARY MARKET : 

SECONDARY MARKET

FOREX MARKET : 

FOREX MARKET The foreign exchange market (forex, FX, or currency market) is a worldwide decentralized over-the-counter financial market for the trading of currencies.. The foreign exchange market determines the relative values of different currencies. The price of one currency viewed in relation to another currency is called exchange rate Eg Rs 50 = 1 USD

MONEY MARKET : 

MONEY MARKET The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit, federal funds, and short-lived mortgage- and asset-backed securities.[1] It provides liquidity funding for the global financial system.

FINANCIAL INSTITUTION : 

FINANCIAL INSTITUTION Securities and Exchange Board of India (SEBI) Reserve Bank of India

Reserve Bank of India : 

Reserve Bank of India Established on April 1, 1935 in accordance with the provisions of the RBI Act, 1934. The Central Office of the Reserve Bank has been in Mumbai. It acts as the apex monetary authority of the country

Main Functions : 

Main Functions Regulator and supervisor of the financial system Prescribes broad parameters of banking operations Maintain public confidence, protect depositors' interest and provide cost-effective banking services Authority On Foreign Exchange Manages the Foreign Exchange Management Act, 1999. Facilitate external trade, payment, promote orderly development and maintenance of foreign exchange market

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Monetary Authority Formulation and Implementation of monetary policies. Maintaining price stability and ensuring adequate flow of credit to the Productive sectors. Issuer of currency: Issues and exchanges or destroys currency and coins. Provide the public adequate quantity of supplies oF currency notes and coins. Related Functions: Banker to the Government: performs merchant banking function for the central and the state governments. Maintains banking accounts of all scheduled banks

Monetary Measures : 

Monetary Measures The Bank Rate Reverse Repo Rate: Cash Reserve Ratio

Securities and Exchange Board of India (SEBI) : 

Securities and Exchange Board of India (SEBI) Securities and Exchange Board of India(SEBI) was first established in the year1988 Its a non-statutory body for regulating the securities market It became an autonomous body in 1992

Main Fuctions : 

Main Fuctions regulating the business in stock exchanges and any other securities markets registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds. promoting investors' education and training of intermediaries of securities markets prohibiting insider trading in securities

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THE END