Finance

PRESENTED BY ASHOK,DEVENDER,

GOURAV,ROHIT,SAGAR

FINANCIAL MARKET

• To facilitate the transfer of funds

• Its consist of investors or buyers & sellers

• Not refer to a physical location

• Consist of formal trading rules & communications networks

Types of financial markets

1. Money market

2. Capital market

TYPES OF MONEY MARKET

1. Organised money market

2. Un organised money market

Types of capital market

1. PRIMARY MARKET- it deals with the issue of new instruments by the corporate sector such as equity shares, preference shares and debt instruments

2. SECONDARY MARKET-it is a market for trading and settlement of securities that have already been issued.

TOOLS OF PRIMARY MARKET

• INITIAL PUBLIC OFFER (IPO)

• PREFRENCE SHARES

• DEBT

• BONDS

• RIGHT ISSUE

PARTICIPANTS OF CAPITAL MARKET

• MERCHANT BANKERS

• MUTUAL FUNDS

• FINANCIAL INSTITUTIONS

• FIIs

• DIIs

• STOCK EXCHANGES

• STOCK BROKERS

STOCK EXCHANGES

• 22 STOCK EXCHANGES IN INDIA

• NSE & BSE ARE THE LARGEST IN INDIA

• BOTH PROVIDING ONLINE TRADING SYSTEM

• PROMOTING THE GROWTH OF THE PRIMARY MARKET

BOMBAY STOCK EXCHANGE(BSE)

• ESTABLISHED IN 1875 IN MUMBAI

• OLDEST EXCHANGE IN ASIA

• WORLDS FIFTH IN TRANSACTION NUMBERS

• USD1.79 TRILLION MARKET CAPITALIZATIO IN 2OO7

• TIED UP WITH USFE

CONTD.

• PRESENCE IN MORE THAN 450 CITIES

• WEBSITE IN HINDI AND GUJRATI ALSO

• CERTIFICATION OF ISO 9001:2000

• INDEX IS SENSEX-SENSITIVE INDEX OF 30 SHARES

NATIONAL STOCK EXCHANGE

• FOUNDED IN NOV. 1992• LARGEST IN TRADING VOLUMES IN

INDIA • IN WORLD SECOND AFTER

JOHANESBURG EXCHANGE• RECORDED GROWTH OF• 16.6%• INDEX IS NIFTY-NATIONAL INDEX OF

FIFTY SHARES

SEBI

1. INCORPORARED ON 12 APRIL 1992

2. TO PROTECT THE INTEREST OF INVESTORS

3. TO PROMOTE THE DEVELOPMENT OF MARKE

4. TO REGULATE THE

SECURITY MARKET

POWERS OF SEBI

• IT CAN ISSUE DIRECTION TO ALL INTERMEDIARIES

• IT CAN CONDUCT INQUIRIES,AUDITS AND INSPECTION OF ALL CONCERN OFFENCES

• FULL AUTHORITY OVER SECURITIES MARKET

• SEBI ISSUED DISCLOSURE AND INVESTOR PROTECTION GUIDLINES

CONTD

• IT GIVE PERMIT TO FIIs

• IT ALLOWS ADRs ,GDRs AND ECBs

• DECIDE THE TIME OF TRADING IN EXCHANGES

• IT CONTROLS SHORT SELLING AND FORWARD BUYING