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Indian Financial Market (SEBI (Purpose☝️ (Promoting (Development (Of…

- - - - Call Money
        
        Shortest Duration finance
        
        lenders are often bank who lend money from e.o
        
        Rate of interset payable is too high
        
        Debt payable on demand
        
        Maturity period -day to fortnight
      - Treasury Bill
        
        Promissory note
        
        Issued by RBI
        
        to meet short term requirement of funds
        
        Bills issued at price less than their par value
        
        Redeemable at par value
        
        High Liquid instruments
        
        so they can be easily transferred or discounted from RBI
        
        Major Players
        
        Banks,Financial,institutions and corporations
      - Commercial paper
        
        Introduction
        
        1990
        
        to enable corporate buyers to raise short term funds
        
        What it is
        
        Popular instrument
        
        for financing working capital requirements of company
        
        Issue Period
        
        15 days to one year
        
        Transferable?
        
        transferable by endorsment and delivery
        
        Blue chip companies
        
        main players
      - Certificate of Deposit
        
        Type of Instrument?
        
        short term
        
        Issuance by
        
        Commercial Banks and Special Financial Institutions (SFIs)
        
        functions
        
        Transferable from one party to another
        
        maturity period
        
        Issued to individuals, co-operatives and companies
      - Trade Bill
        
        Need of the hour
        
        In normal conditions
        
        Traders
        
        Buy goods
        
        From wholesalers or manufactures on credit
        
        Credit period depends on nature of trade and gestation period of the product
        
        manufacturer/wholesaler receives credit at the end.
        
        Sometimes seller is in urgent need of money
        
        He can do so by drawing a bill of exchange in favor of buyer
    - - Done through dealing in financial assets whose period of maturity is one year or less
    - - Money Market does not deal with cash or money as its name goes
        
        Market for credit intruments , biils of exchange, prommisory notes et
    - - Centre for dealings
        
        Short term character
      - Meeting
        
        short term requirements
        
        of Borrowers
      - Provides
        
        liquidity or cash to lenders
      - Place
        
        where short term surplus investible funds at the disposal of financial
        
        and other institutions and individuals are bid by borrowers
        
        compromising institutions ........................I havent understood this
      - RBI
        
        Functions
        
        Supervision of Banks
        
        Custodian
        
        Foreign Exchange Reserve
        
        Maintain
        
        value of domestic currency
        
        Price level in country
        
        Lender of Last Resort
        
        Banker to Banks
        
        Controller of Credit
        
        Banker to Govt
        
        Advisor to Govt
        
        Note issuing
        
        Apex Body
  - - - Guilt edged market
        
        Market for Government and Semi - Government Securities, backed by RBI
        
        Government securities are tradable debt instruments issued by government for meeting its financial requirements
        
        Meaning
        
        Gilt -Edged = 'of the best quality'
        
        Why are these Markets of Best Quality?
        
        Government Securities do not suffer from risk of default and are highly liquid
    - - Industrial Securities Market refers to the market
        
        which deals in equities and debentures of the corporates
      - Divided as
        
        Primary market
        
        New securities related market. Deals with securities which was not available earlier and is offered to investing public for the first time.
        
        Raises Fresh capital in the form of Shares and Debentures
        
        Provides additional fund to the company
        
        Or for expansion,or diversification of an existing one
        
        Companies make new offering as Initial Public Offering(IPO)
        
        Secondary Market
        
        Market for buying and selling of securities of existing companies
        
        Securities are traded after being offered to general public or primary market/ or listed on the stock exchange
        
        This market is exclusive for trading of securities
        
        Enough sensitive market - reflects trends in economy through fluctuations in the prices of various securities
        
        More deep shit things are there- but I havent registered here.
    - - Institutional Arrangement for borrowing medium and long term funds
        
        Demand for these funds come from
        
        Industry , Trade , commerce as well as government- both state and central
      - Suppliers of the fund are
        
        Individual Sources, Corporate, Government Savings, bank insurance companies and special financial institutions like IDBI,UTI etc
        
        Constitutes
        
        Long-term borrowings from banks and financial institutions ,borrowings from foreign markets and raising of capital
      - Market Dealing in Medium and Long term funds
- - - - Protecting
        
        Interests
        
        Of Investors
    - - Development
        
        Of market
      - To Regulate
        
        Securities Market
  - - - stock exchange
      - mutual funds
      - Merchant Banks