51599185 Final Project

8/3/2019 51599185 Final Project

1/46

Financial System Mumbai University, Mumbai

FINANCIAL SERVICES

INTRODUCTION:

The Indian financial services industry has undergone a

metamorphosis since 1990. During the late seventies and eighties,

commercial banks and other financial institutions, which cater to

the requirements of the Indian industry, dominated the Indian

financial services industry. Infect the capital market played a

secondary role only. The economic liberalization has brought in a

complete transformation in the Indian financial services industry.

Prior to the economic liberalization, the Indian financial services

Sector was characterized by so many factors, which retarded the

growth of this sector. Some of the significant factors were.

Excessive controls in the form of regulation of interest rates

money rates etc. Too much control over the prices of securities

under the rest while controller of capital issue.

Non-availability of financial instruments on a large scale as well as

different varieties. Absence of independent credit rating and credit

research agencies. Lack of information about international

development in the financial sector. Absence of a development

Government securities market and the existence of stagnant

M.D.College of Arts, Science and Commerce 1

8/3/2019 51599185 Final Project

2/46


capital market without any reformation. Non-availability of debt

instruments on a large scale.

However, after the economic liberalization, the entire financial

sector has undergone a sea saw change and now we are

witnessing the emergence of new financial products and services

almost everyday, thus the present scenario is characterized by

financial innovation and financial creativity and before going deep

into it is imperative that one should understand the meaning and

scope of financial services. The banking sector witnessed strong

growth in deposits and advances during the year 2006-07. as of

March 2006, the number of commercial banks increased from

US$ 331 billion in March 2007 to US$ 374 billion in March 2000.

Credit of commercial banks in India saw an increase from US$

185 billion in March 2004 to US$ 242 billion in March 2005.

Investments of scheduled commercial banks (SCBs) also saw an

increase from US$ 149 billion in March 2004 to US$ 162 billion in

March 2005. Net domestic credit in the banking system has

witnessed a steady increase of 17.5 per cent from US$ 445 billion

on January 21, 2005 to US$ 523 billion on January 20, 2006. the

growth in net domestic credit during the current financial year up

to January 20, 2006 was 14.4 per cent.

Nationalized banks were the largest contributors to total bank

credit at 47.8 per cent as of September 2005.While foreign banks

contribution to total bank credit was low at 6.7 percent, the

contribution of state Bank of India and its associates accounted for


8/3/2019 51599185 Final Project

3/46


23.8 percent of the total bank credit . Credit extended by other

SCBs stood at 18.9 percent.

Meaning of Financial Services:

In general all types of activities which are of a financial nature,

could be brought under the term financial services. The term

financial services in a broad sense means mobilizing and

allocating savings. Thus, it includes all activities involved in thetransformation of saving into investment. The financial services

can also be called financial intermediation Financial

intermediations is a process by which funds are mobilized from a

large number of savers and make them available to all those who

are need of it and particularly to co-operate customers. Thus

financial services sector is a key area and it is very vital forindustrial developments. A well-developed financial services

industry is absolutely necessary to mobilize the savings and to

allocate them to various invest able channels and thereby to

promote industrial development in a country.

Scope of Financial Services:

Financial services cover a wide range of activities. They can be

broadly classified into two namely;

A. Traditional Activities


8/3/2019 51599185 Final Project

4/46


B. Modern Activities

A. TRADITIONAL ACTIVITIES

Traditionally, the financial intermediaries have been rendering a

wide range of services encompassing both capital and money

market activities.

They can be grouped under two heads viz.

Fund based activities

Non fund based activities

FUND BASED ACTIVITIES

The traditional services which come under fund based activities

are the following.

Underwriting of or investment in shares, debentures, bonds,

etc of new issues (primary markets activities) Dealing in secondary market activities.

Participating in money market instrument like commercial

papers, certificate of deposits, treasury bills, discounting of bills

etc

Involving in equipments leasing, hire purchases, venture

capital seeds capital etc.


8/3/2019 51599185 Final Project

5/46


Dealing in foreign exchange market activities.

NON FUND BASED ACTIVITIES:

Financial intermediaries provide services on the basis of non-fund

activities also. This can also be called fee based activity. Today,

customers whether individuals or corporate are not satisfied with

mere provision of finance. They accept more from financial

services companies. Hence a wide variety of services are

beginning provided under this head. They include the following.

Managing the capital issues i.e. management of pre-issue

and post-issue activities relating to the capital in accordance

with the SEBI guidelines and thus enabling the promoters to

market their issues.

Making arrangement for the placement of capital and debt

instruments with investment institutions.

Arrangements of fund from financial institutions for the

clients projects or his working capital requirements.

Assisting in the process of getting all Governments and other

clearance.


8/3/2019 51599185 Final Project

6/46


B. MODERN ACTIVITIES:

Besides the above traditional services, the financial intermediaries

render innumerable services in recent times. Most of them are in

the nature of non- fund based activity. In view of the importance,

the activities have been discussed in brief under the head New

financial products and services. However some of the modernservices provided by them are given in brief hereunder.

Rendering project advisory services right from the

preparation of the project report till the raising of fund for

starting the project with necessary Government approval.

Planning for mergers and acquisition and assisting for their

smooth carry out.

Guidelines corporate customers in capital restructuring.

Acting as trustee to the debenture holders.

Recommending suitable changes in the management

structure and management style with a view to achieving

better results.

Hedging of risks due to exchange rate risk, interest rate risk,

economic risk and political risk by using swaps and other

derivative products.

Managing the portfolio of large public sector corporations.


8/3/2019 51599185 Final Project

7/46


Undertaking risk management services like insurance

services, buy-back options etc.

Undertaking services relating to the capital markets such as :

o Clearing services

o Registering and transfers

o Safe custody of securities

o Collection of income on securities.

CLASSIFICATION OF FINANCIAL SERVICES

The financial intermediaries in India can be traditionally classified

into two;

1. Capital market intermediaries2. Money market intermediaries

The capital market intermediaries consist to term lending

institutions and investing institutions, which mainly provide long-

term funds. On the other hand, money market consists ofcommercial banks, co-operative banks and other agencies, which

supply only short-term funds. Hence the term financial services

industry includes all kinds of organizations, which intermediate

and facilitate financial transaction of both individuals and corporate

customer.

3.1 Users of Financial Services:


8/3/2019 51599185 Final Project

8/46


Financial institution sells their services to households, business

and Government. The house holds sector includes small mainlyunregulated firms and individuals. Their main financial needs are

for payment of services, and small credit. They risk convenience,

liquidity and security. Business has more complicated financial

needs. It needs short-term credit to finance inventories and long-

term fund to finance capital expansion.

All Governments use payment services. In most developing

countries governments, like business, are not borrowers, and they

use the financial system as source of funding for current and

capital spending. In industrial countries, government deficits are

finance mainly by the selling securities to the public. In developing

country they usually finance borrowing from banks. Governments

have also used the financial system to serve development or other

goals.

Providers of Financial Services:

Different financial institution provides services that are both

complimentary to and competitive with each other. Deposits

institution offer payment and liquid deposits facilities, and

contractual savings institution provide liquid deposits saving

opportunity that caters to the longer term need of customers.

Collective investment institution offer small investor the benefit of

professional management and low risk diversification, encouraging

diversify their saving in to marketable securities. On the lending

side, commercial banks have traditionally provided working capital


8/3/2019 51599185 Final Project

9/46


and trade finance, but longer term lending is gaining with the

spread of universal banking. Different financial institution andmarket complete for limited pool of savings by offering different

instruments. Money and capital market increase competition

suppliers. Money markets give merchant banks, or commercial

banks with limited branch networks, greater access to funds.

Because such banks specialize in lending to large corporation, the

corporate loan market may be highly competitive, even though fewlarge domestic banks may continue to dominate the retail deposits

market.

To promote and efficient interaction of financial system there must

be competition, but the system must also offer an array ofservices. Rather than restrict the growth and diversification of the

main banking groups, governments in the greater competition by

encouraging money and capital markets, specialized credit

institution, and contractual savings and collective investment

institution.

Present Scenario:

Conservation to dynamism:

At present, the financial system in India is in a process of rapid

transformation, particularly after the introduction of reforms in the

financial sector. The main objective of the financial sector reforms

is to promote an efficient, competitive and diversified financial


8/3/2019 51599185 Final Project

10/46


system in the country. This is very essential to raise the allocate

efficiency of available savings, increase the return on investmentand thus to promote the accelerated growth of the economy as a

whole. As a result, we have recently witnessed phenomenal

changes in the money market, securities market, capital market,

debt market and the foreign exchange market. In this changed

context, the role of financial services has assumed greater

significance in our country. At present, numerous new financialintermediaries have started functioning with a view to extending

multifarious services to the investing public in the area of financial

services. The emergence of various financial institutions and

regulatory bodies has transformed the financial services sector

from being a conservative industry to a very dynamic one.

Emergence of primary Equity Market:

Now, we are also witnessing the emergence of many private

sector financial services. The capital markets which were high

sluggish, have become a popular source of raising finance. The

number of stock exchange in the country has gone up from 9 in

2005 to 22 in 2006. The aggregate funds raised by the industries

in the primary markets have gone from RS.61 billion in 2004-2005

to RS.126 billion in 2005-2006. The number of companies listed

on stock exchange has also gone up from 2265 in 1993 to over

7000 in 2000. Thus, the primary equity market has emerged as an

important vehicle to channels the savings of the individuals and


8/3/2019 51599185 Final Project

11/46


corporate for productive purposes and thus to promote the

industrial and economic growth of our nation.

Concept of Credit Rating

There is every possibility of introducing Equity Grading. Hitherto,

the investments decisions of the investors have been based on

factors like name recognition of the company, operations of the

Group, market sentiments, reputation of the promoters etc. from

the company point of view Grading would help to broaden the

market for their public offer, to replace the name recognition by

objective opinion and to have a wider investor base. Thus,

Grading would give further fill up to the primary market. Moreover,

the concept of credit rating would play a significant role in

identifying the risk level of the corporate entity in which the

investor wants to take part.

Now, it is mandatory for the non banking financial companies to

get credit for their debt instruments. The three major credit rating

agencies functioning in India are:


8/3/2019 51599185 Final Project

12/46


Credit Rating Information Services of India Ltd. (CRISIL )

Credit Analysis and Research Ltd. (CARE) and

Investment Information and Credit Rating Agency (ICRA)

Process of Globalizations

Again, the process of globalization has paid the way for the entry

of innovative and sophisticated financial products into our country.

Since the Government is very keen in removing all obstacles that

stand in the way of inflow of foreign capital, the potential abilitiesfor the introduction of innovation international financial products in

India are very great. Moreover, India is likely to enter the full

convertibility era soon. Hence, there is every possibility of

introduction of more and more innovative and sophisticated

financial services in our country.

Process of LiberalizationProcess of Liberalization

Realizing all these factors, the Government of India has initiatedRealizing all these factors, the Government of India has initiated

many steps to reform the financial services industry. Themany steps to reform the financial services industry. The

Government has already switched over to free pricing of issues byGovernment has already switched over to free pricing of issues by

the controller of capital issues. The interest rates have beenthe controller of capital issues. The interest rates have been

deregulated. The private sector has been permitted to participatederegulated. The private sector has been permitted to participate


8/3/2019 51599185 Final Project

13/46


in banking and mutual funds and public sector undertaking arein banking and mutual funds and public sector undertaking are

being privatized. The finance act 1992 has brought into effectbeing privatized. The finance act 1992 has brought into effect

large scale amendments in the tax structure of long- term capitallarge scale amendments in the tax structure of long- term capital

gains. The securities exchange board of India has liberalizedgains. The securities exchange board of India has liberalized

many stringent conditions so as to boost the capital and moneymany stringent conditions so as to boost the capital and money

markets. In this changed context the financial service industry inmarkets. In this changed context the financial service industry in

India has to play a very positive and dynamic role in the years toIndia has to play a very positive and dynamic role in the years to

come by offering many innovation products to suit to the variedcome by offering many innovation products to suit to the variedrequirements of the millions of prospective investors spreadrequirements of the millions of prospective investors spread

throughout the country.throughout the country.

INNOVATIVE TYPES OF FINANCIAL SERVICESINNOVATIVE TYPES OF FINANCIAL SERVICES

Today the importance of financial services is gaining momentum

all over the world. In this days of complex finance, people expect a

financial service company to play a very dynamic role not only as

a result, the clients both corporate and individual expose to the

phenomena of volatility and uncertainty and hence they expect

the financial services company to innovates new products and

services so as to meets there varied requirements.

As results of innovation, new instruments and new products are

emerging in the capital market. The capital market and money

market are getting widened and depended. Moreover, there has

been a structural change in the international capital market with


8/3/2019 51599185 Final Project

14/46


the emergence of new products and innovative techniques of

operation in the capital market. Many financial intermediariesincluding banks have already started expanding their activities in

the products. As a result, sophisticated and innovations have

appeared in the areas of financial intermediations. Some of them

are briefly discussed below:

1. Merchant Banking:

During the seventies, Indian banking witnessed metamorphic

changes. From the basic function of mobilizing deposits and

money lending, the banking industry has grown into catalytic

agency for the promotion of economic development. With ever-

increasing responsibilities cast on it, its concept and attitudes have

also changed considerably to meet the challenges of the Indian

economy. Rapid innovations in the field of banking have resulted

in many activities, which were hitherto unknown to Indian banking.

Along with innovations, banks have tended to lay emphasis on theincreased specialization of various activities. One such innovation

is the merchant banking facilities.

Banking is essential a service industry. Commercial banks are

normally engaged in two major types of services, mobilization of


8/3/2019 51599185 Final Project

15/46


deposits and ancillary services; the one relating to lending is more

prestigious because client more often seeks the banker for funds.Merchant banking, however, exclusively a service function. The

merchant banking has to seek a client, establish good relation with

him offer him the kind of services he needs and maintain a

continuing relationship with him. Inform and efficient services are

the sign guenon of merchant banking. A client will come for advice

only if he is convinced that the merchant banker knows more thanhe does, and is capable of doing the work better than his own

organization.

A merchant banker is a financial intermediary who helps to

transfer capital from those who possess it to those who need it.

Merchant banker includes a wide range of activities such as

management of customers securities, portfolio management

project counseling and appraisal underwriting of shares and

debentures, loan syndication acting as banker for the refund order

handing interest and dividend warrant etc. thus a merchant banker

renders host of services to corporate and thus promotes industrial

development in the country

2. Loan Syndication:

This is mere of less similar to consortium financing. But this work

is taken up by the merchant banker as lead manager. It refers to

as a loan arrangement by a bank called lead manager for a


8/3/2019 51599185 Final Project

16/46

8/3/2019 51599185 Final Project

17/46


3. The ownership of goods passes from the seller to the buyer

on the payment of the installment.4. Incase the buyer makes any default in the payment of any

installment the seller has right to repossess the goods from

the buyer and forfeited the amount already received treating

it as hire charges.

4. Leasing:

Leasing as a finance concept, is an arrangement between two

parties the leasing company or lessor and the user or lessee,

whereby the former arranges to buy capital equipment for the use

of the latter for an agreed period of time in return for the payment

of rent. The rentals are predetermined and payables at fix interval

of time, according mutual convenience of both the parties.

However, the lessor remains the owner of the equipment over the

primary period.

By resorting to leasing, the lessee company is able to exploit the

economic value of the equipment by using it as if the owned

without having to pay for its capital cost. Lease rentals can be

conveniently paid over the lease period out of profit earned from

the use of the equipment and the rent is cent percent tax

deductible. High rate of inflation severs cost escalation, heavy


8/3/2019 51599185 Final Project

18/46

8/3/2019 51599185 Final Project

19/46

8/3/2019 51599185 Final Project

20/46


of the project. Once the project reaches the stages of profitability,

they sell their equity holdings at high premium.

A venture capital company is defined as an a financing institution

which joins an entrepreneur as a co-promoter in a project and

shares the risks and rewards of the enterprise.

5.1 Features of venture capital:

Some of the features of venture capital financial are as under:

1. Venture capital is usually in the form of equity participation. It

may also take the form of convertible debt or long-term loan.

2. Investment is made not only in high risk but also in high

growth potential projects.

3. Venture capital is available only for commercialization of new

ideas or new technologies and not for enterprises, which are

engaged in trading, booking, financial services, agency, liaison

work or research and development.

4. Venture capital joins the entrepreneur as a co-promoter in

projects and shares the risks and rewards of the enterprises.

5. There is continuous involvement in business after making an

investment by the investor.


8/3/2019 51599185 Final Project

21/46


6. Venture capital is not just injection of money but also an input

needed to set up the firm, design its marketing strategy andorganize and manage it.

7. Investment is usually made in small and medium scale

enterprises.

5.2 Venture capital institution in India: -

ICICI venture funds Management Company limited

It is formerly known as TDICI ltd, was found in 1988 in jointventure with unit trust of India.

Subsequently ICICI bought out UTIs stake in 1988and itbecome subsidiary of ICICI.

The broad spectrum of financial and analytical resourcesenabling a keen understanding of the Indian financial markets.

IL&FS Group businesses

It was incorporated in 1987 as a subsidiary of central bank of

India

The initial shareholders were UTI and HDFC.


8/3/2019 51599185 Final Project

22/46

8/3/2019 51599185 Final Project

23/46

8/3/2019 51599185 Final Project

24/46


o Income Schemes

o Balance Schemes

o Money Market Schemes

Other Schemes

o Tax Saving Schemes

o Special Schemes

By Structure

1. Open - Ended Schemes

It is just the opposite of close-ended funds. Under this scheme,

the size of the fund and/or the period of the fund are not pre-

determined. The investors are free to buy and sell any number

of units at any point of time. For instance, the unit scheme

(1964) of the Unit Trust of India is an open-ended one, both in

terms of period and target amount. Anybody can buy this unit

at any time and sell it also at any time at his discretion.

2. Close - Ended Schemes

Under this scheme, the corpus of the fund and its duration are

prefixed. In other words, the corpus of the fund and the


8/3/2019 51599185 Final Project

25/46

8/3/2019 51599185 Final Project

26/46


appreciation. This is achieved by balancing the investments

between the high growth equity shares and also the fixedincome earning securities.

4. Money Market Schemes

These funds are basically open-ended mutual funds and as

such they have all the features of the open-ended funds. But,

they invest in highly liquid and safe securities like commercialpaper, bankers acceptances, certificates of deposits, treasury

bills etc. These instruments are called money market

instruments. They take the place of shares, debentures and

bonds in a capital market. They pay money market rates of

interest. These funds are called money funds in the U.S.A.

and they have been functioning since 1972. Investorsgenerally use it as a parking place or stop gap arrangement

for their cash resources till they finally decide about the proper

avenue for their investment, i.e., long-term financial assets like

bonds and stocks.

Other Schemes

1. Tax Saving Schemes

A taxation fund is basically a growth-oriented fund. But, offers

tax rebates to the investors either in the domestic or foreign


8/3/2019 51599185 Final Project

27/46

8/3/2019 51599185 Final Project

28/46

8/3/2019 51599185 Final Project

29/46

8/3/2019 51599185 Final Project

30/46

8/3/2019 51599185 Final Project

31/46


they will have greater importance in the near future. In India some

forms of derivatives are in operation.

New products in forex markets:

New products have also emerged in the forex markets of

developed countries. Some of these products are yet to make full

entry in Indian markets. Among them, the following are the

important ones.

a) Forward contracts:

A forward transaction is one where the delivery of a foreign

currency takes place at a specified future date for a specified

price. It may have a fixed maturity there is a obligation to

honors this contract at any cost failing which there will be

some penalty. Forward contracts are permitted only for

genuine business transaction. It can be extended to other

transaction like interest payments.

b) Options:

As the very name implies, it is a contract where in the buyer

of the option has the right to buy or sell a fixed amount of

currency against another currency at a fixed rate on a future

date according to his option. There is no obligation to buy or


8/3/2019 51599185 Final Project

32/46


sell but it is completely left to his option. Option may be of

two types namely call options and put options. Under calloptions the customers has an option to buy and it is the

option to sell under put option. Options trading would lead to

speculation and hence there are many restrictions in India.

c) Futures:

It is a contract where in there is an agreement to buy or sell a

stated quantity of foreign currency at a future date at a price

agreed to between the parties on the stated exchange.

Unlike options, there is an obligation to buy or sell foreign

exchange on future date at a specified rate. It can be dealt

only in a stock exchange.

d) Swaps:

A Swaps refers to a transactions where in a financial

intermediary buys and sells a specified foreign currency

simultaneously for different maturity dates say for instance

purchased of spot and sale of forward or vice versa with

different maturities, thus swaps would result in simultaneous


8/3/2019 51599185 Final Project

33/46

8/3/2019 51599185 Final Project

34/46

8/3/2019 51599185 Final Project

35/46

8/3/2019 51599185 Final Project

36/46


orthodox attitude of keeping accounts in a highly secret manner.

Hence, this sector should opt for better levels of transparency.In other words, the disclosure requirements and the accounting

practices have to be in line with the international standards.

Lack of specialization:

In the Indian scene, each financial intermediary seems to deal in

different financial services lines without specializing one or two

areas. In other words, each intermediary is acting as a financing

super market delivering so many financial products and dealing

different varieties of instruments. In other countries, financial

intermediaries like Newtons, Solomon brothers etc. specialize

in one or two areas only. This helps them to achieve high levels

of efficiency and excellence. Hence, in India also, financial

intermediaries can go for specialization.

Lack of recent data:

Most of the intermediaries do not spend more on research. It is

very vital that one should build up a proper data base on the

basis of which one could embark upon financial creativity.

Moreover, a proper data base would keep oneself abreast of the

recent developments in other parts of the whole world and


8/3/2019 51599185 Final Project

37/46


above all, it would enable the fund managers to take sound

financial decisions

Lack of efficient risk management system:

With the opening of the economy to multinationals and the

exposure of Indian companies to international competition,

much importance is given to foreign portfolio flows. It involves

the utilization of multicurrency transactions which exposes the

client to exchange rate risk, interest rate risk and economic and

political risk. Unless a proper risk management system is

developed by the financial intermediaries as in the west, they

would not be in a position to fulfill the growing requirements of

their customers. Hence, it is absolutely essential that they

should introduce Futures, options, swaps and other derivative

products which are necessary for an efficient risk management

system.

The above challenges are likely to increase in numbers with the

growing requirements of the customers. The financial services

sector should rise up to the occasion to meet these challenges by

adopting new instruments and innovative means of financing so

that it could play an very dynamic role in the economy.


8/3/2019 51599185 Final Project

38/46

8/3/2019 51599185 Final Project

39/46

8/3/2019 51599185 Final Project

40/46

8/3/2019 51599185 Final Project

41/46


commission is also decided in advance because the expenses

towards this it means will affect the ultimate result to the investors.After all in all cases only the competitive price and the promises

return catches sentimate of the customer.

Branding:

Brand name very often signifies the market segment, inherent

benefits and investment objective and also the customers loyalty.

These processes consist of product name designing brand policy

like individual family or corporate brand.

Customer Service:

Marketing of services is significantly influence by the quality of

service and interpersonal relationship between customers and

service organizations. In order to motivate the potential customers,

the service should be offer in best possible way. In the competitive

World of financial services, market orientation of services are the

two key factors. Prompt and timely services as per the needs of

customer would make difference.


8/3/2019 51599185 Final Project

42/46


The personal touch in service has shown in positive result in the

recent times. The quality of offered in turn helps to develop loyalty

among the customers services could be provided either directly

by the company through intermediary like Registrar or external

agencies. Customers are involved in a very relationship with the

company and even one weak link can significantly damage their

trust.

Market Segmentation:

The financial services industries are expected to satisfy both rural

and urban customers, small and large-scale entrepreneur, high

and low earning customers, retail and institutional customers. This

makes the task of assessing the needs of customer a bit difficult.

Here the segmentation of market based on the changing needs of

customers is considered to be the most appropriate solution.

Identification of market segmentation of market based is crucial to

take further action regarding promotion and distribution of the

product. Market segment will be identified on the basis of nature of

the product, direct and indirect benefits of the product on one hand


8/3/2019 51599185 Final Project

43/46


and behavior or attitude of the customers product usage rate etc

on the other hand.

In the segment wise formulation of marketing policies if technique

is right, the task of satisfying the customer would be easier. Here

market research plays an important role to identify all the factors

and plan appropriate distribution and promotion policy.

Promotion Policy:

In order to promote the business in highly competitive world, it is

the time to develop creative promotional tools kits so that impulse

buying stimulated among the potential customers. The promotion

of sale may be through advertisement, road shows; personal

finance shows contest, etc. the various promotional tools used by

the major players are:


8/3/2019 51599185 Final Project

44/46


Conclusion

After studying the above all points my conclusion over that is in

the post liberalization the finance sector is witnessing a complete

metamorphosis. Deregulation measures have included the freeing

up of direct control over ownership, deregulating foreign exchangetransaction controls, freeing up the of the new form, an expanding

and broadening the base of the banking system both for national

and international business venture.

Experience suggests that financial liberalization needs to be

undertaken alongside macro economy reforms.


8/3/2019 51599185 Final Project

45/46


The existence of healthy and sound financial institutions should be

able to put pressure on investors and other borrowers, to useresources in an efficient and productive manner in order to repay

the existing obligations and quality for new financial for new

measure projects.

BIBLIOGRAPHY

1) FINANCIAL MARKET AND SERVICES

Author: Gordon and Natarajan

2) THE INDIAN FINANCIAL SYSTEM AND DEVELOPMENT

Author: Vasant Desai

3) INDIAN MONEY MARKET

By Board of Editors of ICFAI

WEBSITES


8/3/2019 51599185 Final Project

46/46


4) www.rbi.org.in

5) www.sebi.gov.in

6) www.amfiindia.com

Documents

51599185 Final Project