Beruflich Dokumente
Kultur Dokumente
FINANCIAL
MARKET
MONEY
MARKET
CAPITAL
MARKET
BOND
MARKET
FOEX
MARKET
EQUITY
MARKET
INSURANCE
MARKET
MUTUAL
FUND
MARKET
Capital Market
Equity Market
Bond Market
Primary Market
New Issues, No stock exchange,
Intermediaries
Secondary Market
Trading in securities, Stock exchange, Demat
Derivatives Market
Insurance Market
Life Insurance and General Insurance
Invest in securities and bank deposits
Provide risk management tools to
corporates and banks
Regulated by Insurance Regulatory
Authority of India
Mutual Funds
Pool small investments to invest in
diversified and/or sectoral securities
Formed as Asset Management
Companies
Invest in capital markets
Regulated by SEBI
PARTICIPANTS IN FINANCIAL
MARKET
Banks
Primary Dealers
Financial Institutions
Stock Exchange
Brokers
Investment Bankers
Foreign Institutional Investors
Custodians
Depositories
Money Market
Lenders and borrowers of money, other than
equity capital
Generally for short term, up to one year
Objectives:
Provide equilibrating mechanism for evening out short
term surplus and deficits
Provide a focal point for central bank intervention for
liquidity management
Provide reasonable access to users of short-term
money to meet their requirements at a realistic price
MM Instruments
Term Money
Interbank borrowing beyond 14 days
No statutory ceiling
Certificate of Deposit
Negotiable money market instrument for
funds deposited at a bank or financial
institution
Demat format or Usance promissory note
Banks issue for periods from 7 days to
one year
FIs issue for periods from one year to 3
years
Commercial Paper
An instrument of disintermediation for
corporates
Now issued by primary dealers and FIs
also
Conditions:
Tangible net worth Min. Rs. 4 crores
Has been sanction WC limits by bank
Classified by bank as standard asset
Minimum credit rating P-2 of CRISIL
Treasury Bills
Short term borrowing by Government
through RBI
Tenor: 14 days, 28 days, 91 days, 182
days and 364 days
Issued at discount to face value of Rs.100
Auctioned every week
Cut-off price determined at a level where
the notified amount of auction is fully bid
for.
Repos contd
Eligible Instruments : Government dated
securities, treasury bills, corporate bonds,
money market securities and equity
Types
Buy-Sell repo (Normal Repo)
Classic repo (ready and forward prices are same,
interest paid separately)
Hold in custody repo (securities held by borrower)
Bond lending/borrowing transaction (customer lends
bonds for a period for a fee)
Repos contd
Repo period : No restriction. Generally
overnight to about a week
Uses:
For borrower: For meeting short term assetliability gap of banks
For lender: Parking of surplus funds for short
term
Bond Market
Bond is an instrument medium/long term
borrowing
Bonds can be government bonds or corporate
bonds (debentures)
Government bonds include:
SLR Securities
Government of India securities
State Development Loans
Other approved securities (PSUs, guaranteed by Govt)