Investment Management Part 2

8/11/2019 Investment Management Part 2

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A PROJECT REPORT

On

MONEY MARKET IN INDIA

in the subject Investment Management

Submitted to

University of Mumbai

For III rd semester of M.Com.

BY

SHWETA CHANDRAKANT SAWANT

Roll No. 48

Under the guidance of

Prof. SUNIL GUJARAN

20142015


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A PROJECT REPORT

On

MONEY MARKET IN INDIA

in the subject Investment Management

Submitted to

University of Mumbai

for III rd semester of M.Com.

BY

SHWETA CHANDRAKANT SAWANT

Roll No. 48

Under the guidance of

Prof. SUNIL GUJARAN

20142015


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C E R T I F I C A T E

This is to certify that the project entitled MONEY MARKET IN INDIA submitted by

Miss. Shweta Chandrakant Sawant Roll No. 48 student of M.Com. Banking &Finance (University of Mumbai) (IIIrd Semester)examination has not been submitted

for any other examination and does not form a part of any other course undergone by the

candidate. It is further certified that he has completed all required phases of the project.

This project is original to the best of our knowledge and has been accepted for Internal

Assessment.

Internal Examiner External Examiner

Co-ordinator Principal

College seal


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DECLARATION BY THE STUDENT

I, Miss. Shweta C Sawantstudent of M.Com. (SemesterIIIrd)Banking

& Finance, Roll No. 48 hereby declare that the project for the Subject

Financial Services titled, Money Market in India submitted by me to

University of Mumbai, examination during the academic year 2014-2015, is

based on actual work carried by me under the guidance and supervision of

Prof.Sunil Gujaran.

I further state that this work is original and not submitted anywhere else for

any examination.

Shweta Chandrakant Sawant

Signature of student.

ACKNOWLEDGEMENT


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At the beginning, I would like to thank GODfor his shower of blessing. The

desire of completing this project was given by my guide Prof. Sunil

Gujaran. I am very much thankful to him for the guidance, support and for

sparing her / his precious time from a busy schedule.

I would fail in my duty if I dont thank my parents who are pillars of my life.

Finally I would express my gratitude to all those who directly and indirectly

helped me in completing this project.

Shweta C Sawant

EXECUTIVE SUMMARY


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A well regulated financial sector is essential in globalize economy. Financial innovation

has contributed in the economic development. A financial institution is an institution that

provides financial services for its clients or members. Probably the most important

financial service provided by financial institutions is acting asfinancial

intermediaries. Most financial institutions are highly regulated by government. The

definition of money for money market purposes is not confined to bank notes but

includes a range of assets that can be turned into cash at short notice, such as short-

termgovernment securities,bills of exchange, and bankers acceptances. This paper

analyses the real effects of financial markets subsequent to financial liberalization in an

economy with risk savers and learning by lending. Transition from full financial

repression to full financial liberalization might initially slow down the growth process or

even induce a recession, whenever the initial level of valuable investments known by the

financial intuitions is sufficiently scanty. However, lending activity leads to accumulation

of information (learning by lending) regarding valuable investments. The purpose of this

paper is to advocate and encourage financial markets in the overall development of the

economy. Money Market is a market for short term funds. Money is raised and deployed

for short term in this market. The Money Market is the close substitutes for money with

the short term up to one year. A minimum size of Rs. 20 crores for each transaction was

permitted in the participation of the corporate in the call money market. The maturity

period of Certificates of Deposits should not be less than 15 days and not more than 1

year. On the recommendation of the Sukhmoy Chakravarty Committee and the

Narasimham committee, RBI initiated a series of reform in Indian Money Market. To

provide safety, liquidity and return, MMMFs are formed which collect the small savings

of a large number of savers and invest them in the capital market. Gilt-edged

(Government) Securities security have great demand for the banks to maintain the Net

Demand and Time Liquidities (NDTL) position of the bank through its buying and

selling. Under the reverse repo transactions, securities are purchased with a simultaneous

commitment to resell at a predetermined rate and date.

INDEX
http://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_regulationhttp://www.britannica.com/EBchecked/topic/240225/government-securityhttp://www.britannica.com/EBchecked/topic/240225/government-securityhttp://en.wikipedia.org/wiki/Financial_regulationhttp://en.wikipedia.org/wiki/Financial_intermediaryhttp://en.wikipedia.org/wiki/Financial_intermediary


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CHAPTER 1

INTRODUCTION..8

CHAPTER 2

MONEY MARKET...11

ROLE OF MONEY MARKET IN ECONOMY..13

ROLE OF GOVERNMENT & CENTRAL BANK.19

CHAPTER 3

INDIAN MONEY MARKET...22

GROWTH OF MONEY MARKET IN INDIA....24

STRUCTURE OF MONEY MARKET IN INDIA..26

MONEY MARKET MUTUAL FUND.32

CHAPTER 4

CONCLUSION..39


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Chapter: 1

INTRODUCTION:

A financial system refers to a system which enables the transfer of money between

investors and borrowers. A financial system could be defined at an international, regional

or organization level. The term system in Financial System indicates a group of

complex and closely linked institutions, agents, procedures, markets, transactions, claims

and liabilities within a economy.

FIVE BASIC COMPONENTS OF FINANCIAL SYSTEM:

Financial Institutions

Financial Markets

Financial Instruments (Assets or Securities)

Financial Services

Money

FINANCIAL MARKETS:

A financial market is the place where financial assets are created or transferred. It can be

broadly categorized into money markets and capital markets. Money market handles

short-term financial assets (less than a year) whereas capital markets take care of those

financial assets that have maturity period of more than a year. The key functions are: 1.

Assist in creation and allocation of credit and liquidity. 2. Serve as intermediaries for

mobilization of savings. 3. Help achieve balanced economic growth. 4. Offer financial

convenience. One more classification is possible: primary markets and secondary

markets. Primary markets handle new issue of securities in contrast secondary markets

take care of securities that are presently available in the stock market. Financial markets

catch the attention of investors and make it possible for companies to finance their

operations and attain growth.


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Money markets make it possible for businesses to gain access to funds on a short term

basis, while capital markets allow businesses to gain long-term funding to aid

expansion. Without financial markets, borrowers would have problems finding lenders.

Intermediaries like banks assist in this procedure. Banks take deposits from investors and

lend money from this pool of deposited money to people who need loan. Banks

commonly provide money in the form of loans.

TYPES OF FINANCIAL MARKETS:

Within the financial sector, the term "financial markets" is often used to refer just to the

markets that are used to raise finance: for long term finance, the Capital markets; for

short term finance, theMoney markets. Another common use of the term is as a catchall

for all the markets in the financial sector, as per examples in the breakdown below.

Capital markets which consist of:

Stock markets, which provide financing through the issuance of shares

orcommon stock,and enable the subsequent trading thereof.

Bond markets,which provide financing through the issuance ofbonds,and enable

the subsequent trading thereof.

Commodity markets,which facilitate the trading of commodities.

Money markets,which provide short term debt financing and investment.

Derivatives markets,which provide instruments for the management offinancial risk.

Futures markets, which provide standardizedforward contracts for trading products

at some future date; see alsoforward market.

Insurance markets,which facilitate the redistribution of various risks.

Foreign exchange markets,which facilitate the trading offoreign exchange.
http://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Bond_markethttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Commodity_marketshttp://en.wikipedia.org/wiki/Money_markethttp://en.wikipedia.org/wiki/Derivatives_markethttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Futures_exchangehttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Forward_markethttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Foreign_exchange_markethttp://en.wikipedia.org/wiki/Insurancehttp://en.wikipedia.org/wiki/Forward_markethttp://en.wikipedia.org/wiki/Forward_contracthttp://en.wikipedia.org/wiki/Futures_exchangehttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Derivatives_markethttp://en.wikipedia.org/wiki/Money_markethttp://en.wikipedia.org/wiki/Commodity_marketshttp://en.wikipedia.org/wiki/Bond_(finance)http://en.wikipedia.org/wiki/Bond_markethttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stock_markethttp://en.wikipedia.org/wiki/Capital_market


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Thecapital markets may also be divided intoprimary markets andsecondary markets.

Newly formed (issued) securities are bought or sold in primary markets, such as

duringinitial public offerings.Secondary markets allow investors to buy and sell existingsecurities. The transactions in primary markets exist between issuers and investors, while

in secondary market transactions exist among investors.

Liquidity is a crucial aspect of securities that are traded in secondary markets. Liquidity

refers to the ease with which a security can be sold without a loss of value. Securities

with an active secondary market mean that there are many buyers and sellers at a given

point in time. Investors benefit fromliquid securitiesbecause they can sell their assets

whenever they want; an illiquid security may force the seller to get rid of their asset at a

large discount.

The financial market is broadly divided into 2 types: 1) Capital Market and 2) Money

market. The Capital market is subdivided into 1) Primary market and 2) Secondary

market.A financial market is a broad term describing any marketplace where buyers and

sellers participate in the trade of assets such as equities, bonds, currencies and

derivatives. Financial markets are typically defined by having transparent pricing, basic

regulations on trading, costs and fees, and market forces determining the prices of

securities that trade.

Financial markets can be found in nearly every nation in the world. Some are very small,

with only a few participants, while others - like the New York Stock Exchange (NYSE)

and the forex markets - trade trillions of dollars daily.
http://en.wikipedia.org/wiki/Capital_markethttp://en.wikipedia.org/wiki/Primary_markethttp://en.wikipedia.org/wiki/Secondary_markethttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Market_liquidityhttp://en.wikipedia.org/wiki/Market_liquidityhttp://en.wikipedia.org/wiki/Initial_public_offeringhttp://en.wikipedia.org/wiki/Secondary_markethttp://en.wikipedia.org/wiki/Primary_markethttp://en.wikipedia.org/wiki/Capital_market


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Chapter: 2

MONEY MARKET:

The Money Market is a very important segment of the Indian financial system. It is the

market where short term monetary assets are dealt in to raise short term requirements of

funds and/ or to park short term surpluses. The main characteristic of the Money Market

is the liquid nature. The money market transactions may range from overnight to one

year. It has minimum transaction cost. This unit encompasses the structure of the Money

Market that has undergone vast changes in the last decade. In this unit, we are going to

discuss the different instruments and the defect of Indian Money Market. The unit also

discusses the bill market. Thus, you will be able to understand through this unit the

structure, instrument as well as the defect of the Indian money market.

Financial openness is often regarded as providing important potential benefits. Access to

money markets expands investors opportunities for a potential for achieving higher risk-

adjusted rates of return. It also allows countries to borrow to smooth consumption in the

face of adverse shocks, the potential growth and welfare gains resulting from such

international risk sharing can be large (Obstfeld, 1994). It has also been argued that by

increasing the rewards of good policies and the penalties for bad policies, free flow of

capital across borders may induce countries to follow more disciplined macroeconomic

policies that translate into greater macroeconomic stability.

An increasingly common argument in favour of financial openness is that it may increase

the depth and breadth of domestic financial markets and lead to an increase in financial

intermediation process by lowering costs and excessive profits associated with

monopolistic or cartelized markets, thereby lowering the cost of investment and

improving resource allocation.


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Organized financial markets have existed in India for more than a century. Today,

markets of varying maturity exist in equity, debt, commodities and foreign exchange.

There are 25 stock markets all over the country, the most important of which, are

theBombay Stock Exchange and theNational Stock Exchange. The rupee has been

convertible on the current account since 1992.

India Financial Market helps in promoting the savings of the economy - helping to adopt

an effective channel to transmit various financial policies. The Indian financial sector is

well- developed, competitive, efficient and integrated to face all shocks. In Indian

financial market there are various types of financial products whose prices are determined

by the numerous buyers and sellers in the market. The other determinant factor of the

prices of the financial products is the market forces of demand and supply.

The India money market is a monetary system that involves the lending and borrowing

of short-term funds. India money market has seen exponential growth just after the

globalization initiative in 1992. It has been observed that financial institutions do employ

money market instruments for financing short-term monetary requirements of various

sectors such as agriculture, finance and manufacturing. The performance of the India

money market has been outstanding in the past 20 years.

Central bank of the country - the Reserve Bank of India (RBI) has always been playing

the major role in regulating and controlling the India money market. The intervention of

RBI is varied - curbing crisis situations by reducing the cash reserve ratio (CRR) or

infusing more money in the economy.
http://library.thinkquest.org/11372/data/bse.htmhttp://library.thinkquest.org/11372/data/nse.htmhttp://library.thinkquest.org/11372/data/nse.htmhttp://library.thinkquest.org/11372/data/bse.htm


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ROLE OF MONEY MARKET IN ECONOMY:

Money markets play a key role in banks liquidity management and the transmission of

monetary policy. In normal times, money markets are among the most liquid in thefinancial sector. By providing the appropriate instruments and partners for liquidity

trading, the money market allows the refinancing of short and medium-term positions and

facilitates the mitigation of your business liquidity risk. The banking system and the

money market represent the exclusive setting monetary policy operates in. A developed,

active and efficient interbank market enhances the efficiency of central banks monetary

policy, transmitting its impulses into the economy best. Thus, the development of the

money market smoothes the progress of financial intermediation and boosts lending to

economy, hence improving the countrys economic and social welfare. Therefore, the

development of the money market is in all stakeholders interests: the banking system elf,

the Central Bank and the economy on the whole.

PRODUCING INFORMATION AND ALLOCATING CAPITAL:

The information production role of financial systems is explored by Ramakrishnan

Thakor (1984), Bhattacharya and P Fleiderer (1985), Boyd and Prescott (1986), andAllen (1990). They develop models where financial intermediaries arise to produce

information and sell this information to savers. Financial intermediaries can improve the

ex ante assessment of investment opportunities with positive ramifications on resource

allocation by economizing on information acquisition costs. As Schumpeter (1912)

argued, financial systems can enhance growth by spurring technological innovation by

identifying and funding entrepreneurs with the best chance of successfully implementing

innovative procedures. For sustained growth at the frontier of technology, acquiring

information and strengthening incentives for obtaining information to improve resource

allocation become key issues.


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RISK SHARING:

One of the most important functions of a financial system is to achieve an optimalallocation of risk. There are many studies directly analyzing the interaction of the risk

sharing role of financial systems and economic growth. These theoretical analyses clarify

the conditions under which financial development that facilitates risk sharing promotes

economic growth and welfare. Quite often in these studies, however, authors focus on

either markets or intermediaries, or a comparison of the two extreme cases where every

financing is conducted by either markets or intermediaries. The intermediate case in

which markets and institutions co-exist is rarely analyzed in the context of growth models

because the addition of markets can destroy the risk-sharing opportunities provided by

intermediaries.

In addition, studies focus on the role of financial systems that face diversifiable risks. The

implications for financial development and financial structure on economic growth are

potentially quite different when markets cannot diversify away all of the risks inherent in

the economic environment. One importance of risk sharing on economic growth comes

from the fact that while avers generally do not like risk, high-return projects tend to be

riskier than low return projects. Thus, financial markets that ease risk diversification tend

to induce a portfolio shift onwards projects with higher expected returns as pointed out by

Greenwood and Jovanovic (1990),Saint-Paul (1992), Devereux and Smith (1994) and

Obstfeld (1994). King and Levine (1993a) show that cross sectional risk diversification

can stimulate risky innovative activity for sufficiently risk-averse agents. The ability to

hold a diversified portfolio of innovative projects reduces risk and promotes investment

in growth-enhancing innovative activities.


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LIQUIDITY:

Money market funds provide valuable liquidity by investing in commercial paper,municipal securities and repurchase agreements: Money market funds are significant

participants in the commercial paper, municipal securities and repurchase agreement (or

repo) markets. Money market funds hold almost 40% of all outstanding commercial

paper, which is now the primary source for short-term funding for corporations, who

issue commercial paper as a lower-cost alternative to short-term bank loans. The repo

market is an important means by which the Federal Reserve conducts monetary policy

and provides daily liquidity to global financial institutions.

Quantum of liquidity in the banking system is of paramount importance, as it is an

important determinant of the inflation rate as well as the creation of credit by the banks in

the economy. Market forces generally indicate the need for borrowing or liquidity and the

money market adjusts itself to such calls. RBI facilitates such adjustments with monetary

policy tools available with it. Heavy call for funds overnight indicates that the banks are

in need of short term funds and in case of liquidity crunch, the interest rates would go up.

DIVERSIFICATION:

For both individual and institutional investors, money market mutual funds provide a

commercially attractive alternative to bank deposits. Money market funds offer greater

investment diversification, are less susceptible to collapse than banks and offer investors

greater disclosure on the nature of their investments and the underlying assets than

traditional bank deposits. For the financial system generally, money market mutual fundsreduce pressure on the FDIC, reduce systemic risk and provide essential liquidity to

capital markets because of the funds investments in commercial paper, municipal

securities and repurchase agreements.


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ENCOURAGEMENTS TO SAVING AND INVESTMENT:

Money market has encouraged investors to save which results in encouragement to

investment in the economy. The savings and investment equilibrium of demand and

supply of loan able funds helps in the allocation of resources.

1. CONTROLS THE PRICE LINE IN ECONOMY:

Inflation is one of the severe economic problems that all the developing economies have

to face every now and then. Cyclical fluctuations do influence the price level differently

depending upon the demand and supply situation at the given point of time. Money

market rates play a main role in controlling the price line. Higher rates in the money

markets decrease the liquidity in the economy and have the effect of reducing the

economic activity in the system. Reduced rates on the other hand increase the liquidity in

the market and bring down the cost of capital considerably, thereby raising the

investment. This function also assists the RBI to control the general money supply in the

economy.

2. HELPS IN CORRECTING THE IMBALANCES IN ECONOMY:

Financial policy on the other hand, has longer term perspective and aims at correcting the

imbalances in the economy. Credit policy and the financial policy both balance each

other to achieve the long term goals strong-minded by the government. It not only

maintains total control over the credit creation by the banks, but also keeps a close watch

over it. The instruments of financial policy counting the repo rate cash reserve ratio and

bank rate are used by the Central Bank of the country to give the necessary direction to

the monetary policy.


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3. REGULATES THE FLOW OF CREDIT AND CREDIT RATES:

Money markets are one of the most significant mechanisms of any developing financial

system. In its place of just ensure that the money market in India regulate the flow of

credit and credit rates, this instrument has emerge as one of the significant policy tools

with the government and the RBI to control the financial policy, money supply, credit

creation and control, inflation rate and overall economic policy of the State. Therefore the

first and the leading function of the money market mechanism are regulatory in nature.

While determining the total volume of credit plan for the six monthly periods, the credit

policy also aims at directing the flow of credit as per the priorities fixed by the

government according to the requirements of the economy. Credit policy as an instrument

is important to ensure the availability of the credit in sufficient volumes; it also caters to

the credit needs of various sectors of the economy. The RBI assist the government to

realize its policies related to the credit plans throughout its statutory control over the

banking system of the country.

4. TRANSMISSION OF MONETARY POLICY:

The money market forms the first and foremost link in the transmission of monetarypolicy impulses to the real economy. Policy interventions by the central bank along with

its market operations influence the decisions of households and firms through the

monetary policy transmission mechanism. The key to this mechanism is the total claim of

the economy on the central bank, commonly known as the monetary base or high-

powered money in the economy. Among the constituents of the monetary base, the most

important constituent is bank reserves, i.e., the claims that banks hold in the form of

deposits with the central bank.


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The banks need for these reserves depends on the overall level of economic activity.

This is governed by several factors:

(i)Banks hold such reserves in proportion to the volume of deposits in many countries,

known as reserve requirements, which influence their ability to extend credit and create

deposits, thereby limiting the volume of transactions to be handled by the bank;

(ii)banks ability to make loans (asset of the bank) depends on its ability to mobilize

deposits (liability of the bank) as total assets and liabilities of the bank need to match and

expand/contract together; and

(iii)Banks need to hold balances at the central bank for settlement of claims within the

banking system as these transactions are settled through the accounts of banks maintained

with the central bank. Therefore, the daily functioning of a modern economy and its

financial system creates a demand for central bank reserves which increases along with

an expansion in overall economic activity (Friedman, 2000b).


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Role of Government and Role of Central Bank (RBI):

ROLE OF GOVERNMENT:

To increase the constancy of Financial Institutions and Markets Government intervenes

in the interest rates and money supply in the Money Markets. Government has several

ways to control income and interest rates which can be divided into two broad groups

such as,

Fiscal policy

Monetary policy

The government to adjust the exchange rate intervenes with the foreignexchange markets; there may be a result on the financial base and the supply of money.

When the currency is falling, foreign currencies should be sold and the currency should

be bought to steady its price. The use of deposits of the national currency to do this

suggest that the prepared deposits of the banking sector must be reduced, causing the

financial base to fall, affecting the supply of money. Equally by selling the national

currency to decrease its rate, the monetary base will increase. Securities may be sold on

the open market in an effort to dampen the effects of inflows of the national currency, but

this would imply a raise in interest rates and cause the currency to rise further still. A

number of institutions can affect the supply of money but the greatest impact on

the money supply is had by the Reserve bank and the commercial banks.

By raising or lowering interest rates the demand for money is respectively reduced or

increased. If it sets them at a certain level it can clear the market at level by supplying

sufficient money to match the demand. Alternatively it could fix the money supply at a

convinced rate and let the market clear the interest rates at the balance. Trying to fix

the money supply is not easy so central banks regularly set the interest rate and provide

the amount of money the market demands.


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ROLE OF CENTRAL BANK (RBI):

Firstly the central bank could do this by setting a necessary reserve ratio, which

would restrict the ability of the commercial banks to increase the money supply by

loaning out money. If this condition were above the ratio the commercial banks wouldhave wished to have then the banks will have to create fewer deposits and make fewer

loans then they could otherwise have profitably done. If the central bank imposed this

requirement in order to reduce the money supply, the commercial banks will probably be

unable to borrow from the central bank in order to increase their cash reserves if they

wished to make further loans. They might try to attract further deposits from customers

by raising their interest rates but the central bank may retaliate by increasing the

necessary reserve ratio.

The central bank can influence the supply of money through special deposits. These

are deposits at the central bank which the banking sector is required to lodge. These are

then frozen, thus preventing the sector from accessing them even though interest is paid

at the average Treasury bill rate. Making these special deposits reduces the level of the

commercial banks operational deposits which forces them to cut back on lending.

The supply of money can also be prohibited by the central bank by adjusting its

interest rate which it charges when the commercial banks wish to borrow money (the

discount rate). Banks generally have a ratio of cash to deposits which they consider to be

the minimum safe level. If command for cash is such that their reserves fall below this

level they will able to borrow money from the central bank at its discount rate. If market

rates were 8% and the discount rate were also 8%, then the banks might decrease their

cash reserves to their minimum ratio knowing that if demand exceeds supply they will be

able to borrow at 8%. The central bank, even if, may raise its discount rate to a value

above the market level, in order to encourage banks not to reduce their cash reserves to

the minimum during excess loans.


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Chapter: 3

INDIAN MONEY MARKET:

The Indian market can be classified into organized and unorganized sectors. The

unorganized sector consists of money lenders, chit funds, and indigenous bankers. These

people satisfy the credit requirement of a large section of the rural masses. The organized

part comprises commercial banks in India both public sector and private sector banks and

foreign banks. The Reserve bank of India the apex bank is the regulator of the money

market in India. It regulates the flow of the credit and money in the economy. To

influence the liquidity in the system the RBI intervenes in the money market from time to

time either to augment or reduce the supply of credit. The open market operation of the

RBI provides signals for other segments of the financial system regarding the future

monetary and credit policy of the apex bank.

THE WEAKNESS OF THE INDIAN MONEY MARKET:

The indigenous bankers and money lenders are still dominating the semi-urban and rural

areas in India. In India the organized and unorganized money markets exist side by side.

This is a major weakness to the Indian money market. The unorganized money markets

follow its own rules and regulation of banking and finance so it does not come into the

purview of RBI rules and regulations. In the recent days there are large number of Non-

bank Financial companies (NBFC) have come up raising deposits from the public. These

NBFCs perform functions like lending, investing, hire purchase etc. these institutions are

not effectively controlled by the RBI.

There is an absence of a well-organized banking system. Though developed to some

extent in the recent years their presence is insignificant in rural areas even today. The

absence of banking facilities to the rural masses due to slow branch expansion in the

country is a matter of concern.


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GROWTH OF MONEY MARKET IN INDIA:

While the need for long term financing is met by the capital or financial markets, money

market is a mechanism which deals with lending and borrowing of short term funds. Post

reforms period in India has witnessed tremendous growth of the Indian money markets.

Banks and other financial institutions have been able to meet the high expectations of

short term funding of important sectors like the industry, services and agriculture.

Functioning under the regulation and control of the Reserve Bank of India (RBI), the

Indian money markets have also exhibited the required maturity and resilience over the

past about two decades. Decision of the government to allow the private sector banks to

operate has provided much needed healthy competition in the money markets, resulting

in fair amount of improvement in their functioning.

The Indian financial markets remained orderly, notwithstanding the impact of global

developments and tight liquidity conditions in domestic markets. Call rate firmed up in

step with policy rates and tight liquidity conditions. It mostly remained above the upper

bound of the LAF corridor during the third quarter of 2010-11. Both commercial paper

(CP) and certificate of deposit (CD) markets remained active as alternative sources of

finance. The yield curve for Government Securities (G-Sec) shifted, reflecting

expectation of policy rate changes in an inflationary environment. The Indian Rupeeappreciated moderately against the US dollar and stock prices rose on the back of strong

foreign portfolio inflows. Prices in the housing market in general continued the rising

trend during the second quarter of 2010-11.

1. RBI INTERVENTION:

Depending on the economic situation and available market trends, the RBI intervenes in

the money market through a host of interventions. In case of liquidity crunch, the RBI has

the option of either reducing the Cash Reserve Ratio (CRR) or pumping in more money

supply into the system. Recently, to overcome the liquidity crunch in the Indian money

market, the RBI has released more than Rs 75,000 crore with two back-to-

back reductions in the CRR.


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2. LINK WITH FOREIGN EXCHANGE MARKET:

In addition to the lending by the banks and the financial institutions, various companies

in the corporate sector also issue fixed deposits to the public for shorter duration and to

that extent become part of the money market mechanism selectively. The maturities of

the instruments issued by the money market as a whole, range from one day to one year.

The money market is also closely linked with the Foreign Exchange Market, through the

process of covered interest arbitrage in which the forward premium acts as a bridge

between the domestic and foreign interest rates.

3. DETERMINATION OF APPROPRIATE INTEREST FOR DEPOSITS:

Determination of appropriate interest for deposits or loans by the banks or the other

financial institutions is a complex mechanism in itself. There are several issues that need

to be resolved before the optimum rates are determined. While the term structure of the

interest rate is a very important determinant, the difference between the existing domestic

and international interest rates also emerges as an important factor. Further, there are

several credit instruments which involve similar maturity but diversely different risk

factors. Such distortions are available only in developing and diverse economies like the

Indian economy and need extra care while handling the issues at the policy levels.

Typically, the monetary policy instrument, effectively the price of central bank liquidity,

is directly set by the central bank. In view of limited control over long-term interest rates,

central banks adopt a strategy to exert direct influence on short-term interest rates.

Changes in the short-term policy rate provide signals to financial markets, whereby

different segments of the financial system respond by adjusting their rates of return on

various instruments, depending on their sensitivity and the efficacy of the transmission

mechanism. How quickly and effectively the monetary policy actions influence the

spectrum of market interest rates depends upon the level of development of various

segments of financial markets, particularly the money market. Cross-country studies

suggest that as domestic financial markets grow, transmission of monetary policy through

various channels becomes better.


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STRUCTURE OF THE MONEY MARKET IN INDIA:

In view of the rapid changes on account of financial deregulation and global financial

markets integration, central banks in several countries have striven to develop and deepen

the money markets by enlarging the ambit of instruments5 and participants so as to

improve the transmission channels of monetary policy. The structure of money markets

determines the type of instruments that are feasible for the conduct of monetary

management. Evidence and experience indicate that preference for market oriented an

instrument by the monetary authorities helps to promote broader market development.

The entire money market in India can be divided into two parts. They are organizedmoney market and the unorganized money market. The unorganized money market can

also be known as an unauthorized money market. Both of these components comprise

several constituents.

1. CALL MONEY MARKET:

It an important sub market of the Indian money market. It is also known as money at call

and money at short notice. It is also called inter bank loan market. In this market money

is demanded for extremely short period. The duration of such transactions is from few

hours to 14 days. It is basically located in the industrial and commercial locations such as

Mumbai, Delhi, Calcutta, etc. These transactions help stock brokers and dealers to fulfill

their financial requirements. The rate at which money is made available is called as a call

rate. Thus rate is fixed by the market forces such as the demand for and supply of money.

Banks and primary dealers in government securities may soon have more flexibility in

borrowing and lending in the call money market. The Reserve Bank of India said that

banks may be allowed to borrow and lend in the interbank call money market based on

their assets and liability match rather than prudential limits.


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In the call money market, banks can currently borrow not beyond 100 % of their capital

funds on a fortnightly average basis and on daily basis it cannot exceed 125 %they can

lend up to 25 % of their capital fund on a fortnightly average basis and 50 % on daily

basis. With the rising credit demand, the RBI will also review the Inter-bank participation

certificates scheme to improve assets liability management and liquidity management.

The debt market would require more investor if the statutory liquidity ratio of banks is

cut, the RBI said.

With respect to SLR, the central bank said, The investor base needs to be widened in the

views of possibilities of reduction in the captive investor base resulting from the scaling

down of the SLR from the present level.

2. COMMERCIAL BILL MARKET:

It is a market for the short term, self liquidating and negotiable money market instrument.

Commercial bills are used to finance the movement and storage of agriculture and

industrial goods in domestic and foreign markets. The commercial bill market in India is

still underdeveloped.

3. TREASURY BILL MARKET:

This is a market for sale and purchase of short term government securities. These

securities are called as Treasury Bills which are promissory notes or financial bills issued

by the RBI on behalf of the Government of India. There are two types of treasury bills. (i)

Ordinary or Regular Treasury Bills and (ii) Ad Hoc Treasury Bills. The maturity period

of these securities range from as low as 14 days to as high as 364 days. They have

become very popular recently due to high level of safety involved in them.

Treasury Bills, one of the safest money market instruments, are short term borrowing

instruments of the Central Government of the Country issued through the Central Bank

(RBI in India). They are zero risk instruments, and hence the returns are not so attractive.

It is available both in primary market as well as secondary market.


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It is a promise to pay a said sum after a specified periods -bills are short-term securities

that mature in one year or less from their issue date. They are issued with three-

month, six-month and one-year maturity periods. The Central Government issues T- Bills

at a price less than their face value (par value). They are issued with a promise to pay full

face value on maturity. So, when the T- Bills mature, the government pays the holder its

face value. The difference between the purchase price and the maturity value is the

interest income earned by the purchaser of the instrument. T-Bills are issued through a

bidding process at auctions. The bid can be prepared either competitively or non-

competitively. In the second type of bidding, return required is not specified and the one

determined at the auction is received on maturity. Whereas, in case of competitive

bidding, the return required on maturity is specified in the bid. In case the return specified

is too high then the T-Bill might not be issued to the bidder.

At present, the Government of India issues three types of treasury bills through auctions,

namely, 91-day, 182-day and 364-day. There are no treasury bills issued by State

Governments. Treasury bills are available for a minimum amount of Rs.25K and in its

multiples. While 91-day T-bills are auctioned every week on Wednesdays, 182-day and

364- day T-bills are auctioned every alternate week on Wednesdays. The Reserve Bank

of India issues a quarterly calendar of T-bill auctions which is available at the Banks

website. It also announces the exact dates of auction, the amount to be auctioned and

payment dates by issuing press releases prior to every auction. Payment by allotters at the

auction is required to be made by debit to their/ custodians current account. T-

bills auctions are held on the Negotiated Dealing System (NDS) and the members

electronically submit their bids on the system. NDS is an electronic platform for

facilitating dealing in Government Securities and Money Market Instruments. RBI issues

these instruments to absorb liquidity from the market by contracting the money supply.

Primary yields on Treasury Bills (TBs) firmed up during Q1 of 2011-12 in line with the

spike in short-term interest rates (Table1). The rise in yields reflected a sharp increase in

Government short-term borrowing, through issuances of TBs over and above the amount

as per the indicative calendar announced in March 2013.


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4. REPO (REPURCHASE) TRANSACTION:

Repo or Reverse Repo are transactions or short term loans in which two parties agree to

sell and repurchase the same security. They are usually used for overnight borrowing.

Repo/Reverse Repo transactions can be done only between the parties approved by RBI

and in RBI approved securities viz. GOI and State Government Securities, T-Bills, PSU

Bonds, FI Bonds, Corporate Bonds etc. Under repurchase agreement the seller sells

specified securities with an agreement to repurchase the same at a mutually decided

future date and price. Similarly, the buyer purchases the securities with an agreement to

resell the same to the seller on an agreed date at a predetermined price. Such a transaction

is called a Repo when viewed from the perspective of the seller of the securities and

Reverse Repo when viewed from the perspective of the buyer of the securities.

Thus, whether a given agreement is termed as a Repo or Reverse Repo depends on which

party initiated the transaction. The lender or buyer in a Repo is entitled to receive

compensation for use of funds provided to the counterparty. Effectively the seller of the

security borrows money for a period of time (Repo period) at a particular rate of interest

mutually agreed with the buyer of the security who has lent the funds to the seller. The

rate of interest agreed upon is called the Repo rate. The Repo rate is negotiated by the

counterparties independently of the coupon rate or rates of the underlying securities and

is influenced by overall money market conditions.

5. MARKET FOR CERTIFICATE OF DEPOSITS (CDs):

It is again an important segment of the Indian money market. The certificate of deposits

is issued by the commercial banks. They are worth the value of Rs. 25 lakh and in

multiple of Rs. 25 lakh. The minimum subscription of CD should be worth Rs. 1 Crore.

The maturity period of CD is as low as 3 months and as high as 1 year. These are the

transferable investment instrument in a money market.


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Advantages of Certificate of Deposit as a money market instrument:

1. Since one can know the returns from before, the certificates of deposits are considered

much safe.

2. One can earn more as compared to depositing money in savings account.

3. The Federal Insurance Corporation guarantees the investments in the certificate of

deposit.

Disadvantages of Certificate of deposit as a money market instrument:

1. As compared to other investments the returns is less.

2. The money is tied along with the long maturity period of the Certificate of Deposit.

3. Huge penalties are paid if one gets out of it before maturity.

6. MARKET FOR COMMERCIAL PAPERS (CPs):

It is the market where the commercial papers are traded. Commercial paper (CP) is an

investment instrument which can be issued by a listed company having working capital

more than or equal to Rs. 5 cr. The CPs can be issued in multiples of Rs. 25 lakhs.

However the minimum subscription should at least be Rs. 1 cr. The maturity period for

the CP is minimum of 3 months and maximum 6 months. This was introduced by the

government in 1990.

7. SHORT TERM LOAN MARKET:

It is a market where the short term loan requirements of corporate are met by the

Commercial banks. Banks provide short term loans to corporate in the form of cash credit

or in the form of overdraft. Cash credit is given to industrialists and overdraft is given to

businessmen.


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8. BANKERS ACCEPTANCE:

It is a short term credit investment created by a non financial firm and guaranteed by a

bank to make payment. It is simply a bill of exchange drawn by a person and accepted by

a bank. It is a buyers promise to pay to the seller a certain specified amount at certain

date. The same is guaranteed by the banker of the buyer in exchange for a claim on the

goods as collateral. The person drawing the bill must have a good credit rating otherwise

the Bankers Acceptance will not be tradable. The most common term for these

instruments is 90 days. However, they can vary from 30 days to180 days. For

corporations, it acts as a negotiable time draft for financing imports, exports and other

transactions in goods and is highly useful when the credit worthiness of the foreign trade

party is unknown. The seller need not hold it until maturity and can sell off the same in

secondary market at discount from the face value to liquidate its receivables.

9. PASS THROUGH CERTIFICATES:

This is an instrument with cash flows derived from the cash flow of another underlying

instrument or loan. The issuer is a special purpose vehicle (SPV), which only receives

money, from a multitude of may be several hundreds or thousands, underlying loans and

passes the money to the holders of the PTCs. This process is called securitization. Legallyspeaking PTCs are promissory notes and hence tradable freely with no stamp duty

payable on transfer. Most PTCs have 2-3 year maturity because the issuance stamp duty

rate makes shorter duration PTCs unviable.

10.DATED GOVERNMENT SECURITIES:

These are securities issued by the Government of India and State Governments. The dateof maturity is specified in the securities therefore they are known as dated securities. The

Government borrows funds through the issue of long term dated securities, the lowest

risk category instruments in the economy received.


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MONEY MARKET MUTUAL FUND:

A money market mutual fund is a kind of mutual fund that invests in ultra-safe or low

risk securities. The purpose of the fund is to conserve the capital of the fund and it isunusual to see the NAV of a money market mutual fund go below one. The NAV can go

below one if the securities do badly but it is quite rare to happen.

A Money Market Mutual fund is meant for people who wish to maintain their capital and

park their short-term cash into a safety that gives - stable but low returns. It is also used

by citizens who want to balance their portfolio and build in some security. If you have a

lot of stocks in your portfolio then money market funds can balance your overall portfolioby providing capital safety.

Money Market Mutual Funds present - securities of domestic and foreign issuers. They

are securities that are naturally - high quality (low risk) short term securities that can have

a fixed, floating or changeable interest rate.

A money market mutual fund usually invests in the following type of assets:

Bank certificates of deposits

Bankers Acceptance

Bank Time Deposits

Commercial Paper

Repurchase Agreements

A money market fund is a mutual fund that invests solely in money market

instruments. Money market instruments are forms of debt that mature in less than one

year and are very liquid. Treasury bills make up the bulk of the money market

instruments. Securities in the money market are relatively risk-free.


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Money market funds are generally the safest and most secure of mutual fund investments.

The goal of a money-market fund is to preserve principal while yielding a modest return.

Money-market mutual fund is akin to a high-yield bank account but is not entirely risk

free. When investing in a money-market fund, attention should be paid to the interest

rate that is being offered.

TYPES OF MONEY MARKET MUTUAL FUNDS

Institutional money market mutual funds:

These funds are held by governments, institutional investors and businesses etc. Huge

sum of money is parked in institutional money funds.

Retail Money Market Mutual Funds:

Retail money market funds are used for parking money temporarily. The investment portfolio

of money market funds comprises of treasury bills, short term debts, tax free bonds etc.

SPECIAL FEATURES OF MONEY MARKET MUTUAL FUNDS:

Money market mutual funds are one of the safest instruments of investment for the retail

low income investor. The assets in a money market fund are invested in safe and stable

instruments of investment issued by governments, banks and corporations etc.

Generally, money market instruments require huge amount of investments and it is

beyond the capacity of an ordinary retail investor to invest such large sums. Money

market funds allow retail investors the opportunity of investing in money market

instrument and benefit from the price advantage.


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There are different classes of money market funds based on where they invest their funds.

Here is a list of some Money Market Mutual Funds:

UTI Liquid Short Term Plan (G)

Tata Treasury Manager-RIP (G)

LIC MF Liquid Fund (G)

ING Treasury Mgmt Fund (G)

UTI Money Market Fund (G)

SBI Magnum Cash-Liq Floater -G

HDFC Cash Mgmt. Fund - SP (G)

ING Treasury Plus - RP (G)

Reliance Liquid Fund TP (G)

AIG India Liquid Fund-RP (G)

Birla Sun Life CM (G)

ICICI Pru Liquid Plan (G)

Kotak Liquid Regular (G)

Sundaram Money Fund (G)

IDFC Cash Fund (G) Not Rated

JM Money Manager Fund -RP (G)

Templeton (I) Cash Mgmt (G)

Bharti AXA Liquid Fund-RP (G)

Edelweiss Liquid Fund -RP (G)


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DEFECTS OF INDIAN MONEY MARKET:

Money market is the market for lending and borrowing of short term funds. A well

developed money market denotes an implementation of effective monetary policy. But

the Indian money market suffers from many weaknesses.

1. LACK OF INTEGRATION:

The Indian Money Market is divided into two sectors viz, the organized and unorganized

money market. But both the markets are completely separate from each other. They are

working independently and have little effect on each other. RBI is fully effective in

controlling the organized sector. But, it has very less control on the unorganized sector.

2. LACK OF RATIONAL INTEREST RATES STRUCTURE:

The Indian Money Market exist too many interest rates. For example, the deposit and lending

rates of commercial banks, the borrowing rate of Government etc. In the past these created excessdemand for credit and the RBI had to rely often on cash reserve ratio. Though the RBI has tried to

bring rationality in the interest rates, the situation in the Indian money market is still not effective.

3. EXISTENCE OF UNORGANISED MONEY MARKET:

The existence of the unorganized sector in money market still prevails in Indian Money

Market. The indigenous banker does not make any distinction between short term and

long-term finance. They have no coordination with each other and have no link with

other banking sectors. They do not follow any sound banking regulations. The RBI has

no control over these bankers.


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4. ABSENCE OF AN ORGANISED BILL MARKET:

In Indian Money Market, there is an absence of adequate bill market. There is an absenceof commercial bill market or a discount for short term commercial bills. There are many

factors responsible for the underdeveloped bill market such as (i) relying more on cash

transaction, (ii) cash credit of commercial bank, (iii) sellers limited use of bills, (iv)

imposition of heavy stamp duty, (v) absence of acceptance houses etc.

5. SHORTAGE OF FUNDS IN THE MONEY MARKET:

The lack of banking habit, inadequate banking facility, less saving habit, etc created hasshortage of fund in the money market. On the other hand, the increasing demand for loan

able funds in the money market far exceeds its supply.

6. INADEQUATE BANKING FACILITY:

Now-a-days, the commercial banks have opened many new branches of banking

facilities. But, it still leaves much scope for further development. In a developing country

like India, people live below poverty line and have less saving habit. Their savings arevery small and they do not have much access to banking facilities till now.

7. SEASONAL STRINGENCY OF MONEY:

During the part of the year the interest rates are become high due to the increasing

demand for funds in the money market for the operation in the agricultural sector.

Basically, it is seen in the period from October to June.


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Measure:

The major drawback of India Money Market is its high volatility. Gradually the money

market transaction is increasing. But, on the recommendation of the Sukhmoy

Chakravarty Committee (on the review of the working of the Monetary System) and the

Narasimham committee (on the Report on the working of the financial system in India,

1991), RBI initiated a series of reform in Indian Money Market. The following are some

of the measures undertaken:

1. INTRODUCING NEW MONEY MARKET INSTRUMENT:

Many new money market instruments are introduced like Commercial Papers,

Certificates of Deposits, 182-day Treasury, 364-day Treasury etc. The Discount andFinance House have also developed. These facilitate different short term borrowings to

the different borrowers to collect fund as and when required to maintain their financial

position.

2. RELAXATION OF INTEREST RATE REGULATIONS

The all types of interest rates like lending as well as deposit rates of the banks and

financial institution are controlled and regulated by RBI. But, gradually the interest ratesof the bank loans are controlled by the market forces which result decontrolled of it.

3. REMITTING THE STAMP DUTIES:

In August 1989, Government remitted the stamp duty. But, it is not effective till it

discourages the cash credit system in favor of using the bill system.

4. SECTOR SPECIFIC REFINANCE:

Export credit refinance and general refinance are two refinance schemes that are in

operation in the current financial system. The refinance is used by the central bank to

control credit conditions and the liquidity positions in the system.


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5. INTRODUCTION OF REPO:

This is used by the banks for short term liquidity through sale or purchase of debt

instruments. It is an agreement to repurchase them at a predetermined rate and date

between the RBI and commercial banks.

6. INTRODUCING MONEY MARKET MUTUAL FUNDS:

The Money Market Mutual Funds were introduced in April 1991. The collection of the

small savings invested generates short term avenues to the different investors.

7. SETTING THE DISCOUNT AND FINANCE HOUSE IN INDIA:

The DFHI equilibrated the surplus of fund and the deficit amounts of the banks. The

DFHI helps in lending and borrowing of funds to the different banks as well as financial

institutions.

Money market rates also reflect market expectations of how the policy rate could evolve

in the near term. As per standard expectations hypothesis, money market rates for

different time duration should equal expected future short-term rates, plus term premium

and risk premium. Bernanke (2004) had examined how expectations of the likely future

course of the federal funds rate respond to the Federal policy actions and statements. Our

findings support the view that FOMC statements have proven a powerful tool for

affecting market expectations about the future course of the federal funds rate.


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Major Developments in Money Market since the 1990s

Abolition of ad hoctreasury bills in April 1997

Full fledged LAF in June 2000.

CBLO for corporate and non-bank participants introduced in 2003

Minimum maturity of CPs shortened by October 2004

Prudential limits on exposure of banks and PDs to call/notice market in April 2005

Maturity of CDs gradually shortened by April 2005

Transformation of call money market into a pure inter-bank market by August 2005

Widening of collateral base by making state government securities (SDLs) eligible for LAF

operations since April 2007

Operationalisation of a screen-based negotiated system (NDS-CALL) for all dealings in the

call/notice and the term money markets in September 2006. The reporting of all such

transactions made compulsory through NDS-CALL in November 2012.

Repo in corporate bonds allowed in March 2010.

Operationalisation of a reporting platform for secondary market transactions in CPs andCDs in July 2010.


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In order to improve transparency and efficiency in the money market, reporting of all

call/notice money market transactions through negotiated dealing system (NDS) within

15 minutes of conclusion of the transaction was made mandatory. Furthermore, a screen-

based negotiated quote-driven system for all dealings in the call/notice and the term

money markets (NDS-CALL), developed by the Clearing Corporation of India Limited

(CCIL), was operationalised in September 2006 to ensure better price discovery as shown

in chart1.


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CASE STUDY

In the development of various constituents of the money market, the most significant aspect was

the growth of the collateralized market vie- -via the uncollateralized market. Over the last

decade, while the daily turnover in the call money market either stagnated or declined, that of the

collateralized segment, market repo plus CBLO, increased manifold (Chart 2). Since 2007-08,

both the CP and CD volumes have also increased very significantly (Chart 3). Furthermore,

issuance of 91-treasury bills has also increased sharply (Chart 4). The overall money market now

is much larger relative to GDP than a decade ago.


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Though the LAF helped to develop interest rate as an instrument of monetary

transmission, two major weaknesses came to the fore. First was the lack of a single policy

rate, as the operating policy rate alternated between repo during deficit liquidity situation

and reverse repo rate during surplus liquidity condition. Second was the lack of a firm

corridor, as the effective overnight interest rates dipped (rose) below (above) the reverse

repo (repo) rate in extreme surplus (deficit) conditions.


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Chapter: 4

CONCLUSION:

To sum up, the money market is a key component of the financial system as it is the

fulcrum of monetary operations conducted by the central bank in its pursuit of monetary

policy objectives. It is a market for short-term funds with maturity ranging from

overnight to one year and includes financial instruments that are deemed to be close

substitutes of money. The money market performs three broad functions.

Firstly, it provides an equilibrating mechanism for demand and supply of short-term

funds. Secondly, it enables borrowers and lenders of short-term funds to fulfil their

borrowing and investment requirements at an efficient market clearing price. Three, it

provides an avenue for central bank intervention in influencing both quantum and cost of

liquidity in the financial system, thereby transmitting monetary policy impulses to the

real economy.

The objective of monetary management by the central bank is to align money market

rates with the key policy rate. As excessive money market volatility could deliverconfusing signals about the stance of monetary policy, it is critical to ensure orderly

market behavior, from the point of view of both monetary and financial stability. Thus,

efficient functioning of the money market is important for the effectiveness of monetary

policy.

Though the LAF helped to develop interest rate as an instrument of monetary

transmission, two major weaknesses came to the fore. First was the lack of a single policy

rate, as the operating policy rate alternated between repo during deficit liquidity situation

and reverse repo rate during surplus liquidity condition. Second was the lack of a firm

corridor, as the effective overnight interest rates dipped (rose) below (above) the reverse

repo (repo) rate in extreme surplus (deficit) conditions.


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REFERENCE:

WEBLIOGRAPHY:

www.fxcmmarkets.com

www.kkhsou.in/main/EVidya2/commerce/indian_money.htm

study-material4u.blogspot.com/.../chapter-5-indian-money-market.html

www.rbi.org.in/scripts/bs_viewmmo.asp

www.vitt.in/market/moneyt
http://www.fxcmmarkets.com/http://www.kkhsou.in/main/EVidya2/commerce/indian_money.htmhttp://www.rbi.org.in/scripts/bs_viewmmo.asphttp://www.rbi.org.in/scripts/bs_viewmmo.asphttp://www.kkhsou.in/main/EVidya2/commerce/indian_money.htmhttp://www.fxcmmarkets.com/

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Investment Management Part 2