Slide 1: PRESENTED BY NIRUPAM SAHA(19) Slide 2: Existence of a well organized financial institutes. Promotes the well being and standard of living of the people of a country . Money and monetary assets. Mobilize the saving. Promotes investment. Slide 3: Financial system Organized Non-Organized Regulators Money lenders Financial Institutions Local bankers Financial Markets Traders Chit finds Slide 4: Capital markets facilitate the transfer of capital (i.e. financial) assets from one owner to another. They provide liquidity. – Liquidity refers to how easily an asset can be transferred in to money without loss of value. A side benefit of capital markets is that the transaction price provides a measure on the Value of the asset. Slide 5: Mobilization of Savings & acceleration of Capital Formation. Promotion of Industrial Growth. Raising of long term Capital. Ready & Continuous Markets. Proper Channelization of Funds. Provision of a variety of Services. Slide 6: Each scam has brought in reforms - 1992 / 2001. Screen based Trading through NSE. Capital adequacy norms stipulated. Dematerialization of Shares - risks of fraudulent paper eliminated. Entry of Foreign Investors. Investor awareness programs. Inter-action between banking and exchanges. Slide 7: Corporatisation of exchange memberships. Introduction of Derivative products - Index / Stock Futures & Options. Reforms/Changes in the margining system. STP - electronic contracts. Margin Lending. Securities Lending. Slide 8: Establishment of Development banks & Industrial financial institution. Legislative measures. Growing public confidence. Increasing awareness of investment opportunities. Slide 9: Growth of underwriting business. Setting up of SEBI. Mutual Funds. Credit Rating Agencies. Slide 10: Lack of transparency. Physical settlement. Variety of manipulative practices. Institutional deficiencies. Insider trading. Slide 11: Market for short-term money and financial assets that are near substitutes for money. Short-Term means generally period up to one year and near substitutes to money is used to denote any financial asset which can be quickly converted into money with minimum transaction cost Slide 12: It is a place for Large Institutions and government to manage their short-term cash needs . It specializes in very short-term debt securities They are also called as Cash Investments Slide 13: Lack of Integration. Lack of Rational Interest Rates structure. Absence of an organized bill market. Shortage of funds in the Money Market. Seasonal Stringency of funds and fluctuations in Interest rates . Inadequate banking facilities . Slide 14: Treasury Bills. Commercial Paper. Certificate of Deposit. Money Market Mutual Funds. Repo Market. Slide 15: With an eye on monetary reforms the government set up a committee. The committee was headed by prime minister N Narshiman . It was known as the committee on financial reforms 1991. The government also set up another committee for insisting reforms in the banking sector.