financial system

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By: rk12061981 (12 month(s) ago)

hi this is ravindra can you please allow to download

By: deepeshmahajan (15 month(s) ago)

Dear all, It is open from my side as so many requests reached to me regarding this. With a lots of love. Deepesh Mahajan, Faculty Finance, Venkteshwara Institute of Technology, Indore.

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Presentation Transcript

Slide 1: 

THE FINANCIAL SYSTEM 15

System : 

System System is a set of inter-related components or sub systems working together to achieve some purpose with and through a super system. 16

Financial System : 

Financial System 17 Government Bonds

Functions of Financial System : 

Functions of Financial System 18

Evolution of Indian Financial System : 

Evolution of Indian Financial System Phase I: Transition (1950 to 1960) Phase II: Expansion and Diversification (1969 to 1985) Phase III: Consolidation, Innovation and Liberalisation (after 1985 ) 19

Slide 6: 

20 Flow of Funds

Assets and Financial Assets : 

Assets and Financial Assets Assets are the rights of owners Fixed assets can be seen and can be touched (Tangible) 21

Classification of Financial Assets : 

Classification of Financial Assets 22

Return on Financial Assets : 

Return on Financial Assets Bonds/ Debentures Debt Preference share Equity share 23 Dividend Interest

Functions of Financial Markets : 

Functions of Financial Markets Investor protection and participation. Provide investment avenues. Financial information( creation of awareness). Marketability/Liquidity. Reduction of Transaction cost(efficiency / effectiveness). Promotes savings and investments. Risk Reward mechanism. 24

Distinguish between Money Market and Capital Market : 

Distinguish between Money Market and Capital Market 25

Financial Instruments : 

Financial Instruments Securities issued to public to raise funds Example Equity Share. Preference Share. Debentures/ Bonds. Commercial papers. Certificate of Deposits etc., 26

Financial Intermediaries : 

Financial Intermediaries FIs that act as bridge between savers and investors and provides needed funds to investors FIs include: Banks and NBFCs Banks : RRBs, DBs (Industrial Banks), Cooperative Banks, Investment Banks, Commercial Banks. NBFCs: Insurance companies (life as well as General); Mutual funds etc 27

Structure of Indian Financial Intermediaries : 

Structure of Indian Financial Intermediaries 28

Regulatory Institutions : 

Regulatory Institutions RBI SEBI IRDA NABARD NHB 29