Escolar Documentos
Profissional Documentos
Cultura Documentos
• Financial Assets
• Financial Markets
• Financial Intermediaries
• Regulatory Infrastructure
Centre for Financial Management , Bangalore
THE FINANCIAL SYSTEM
Financial Institutions
Funds Funds
Commercial Banks
Insurance Companies
Deposits/Shares Mutual Funds Loans
Provident Funds
Non-Banking Financial
Companies
Financial Markets
Funds Funds
Money Market
Capital Market
Securities Securities
• Payment System
• Pooling of Funds
• Transfer of Resources
• Risk Management
Examples :
• A 10-year bond issued by the GOI carrying an interest
rate of 7 percent.
DEBT MARKET
NATURE OF CLAIM
EQUITY MARKET
MONEY MARKET
MATURITY OF CLAIM
CAPITAL MARKET
PRIMARY MARKET
SEASONING OF CLAIM
SECONDARY MARKET
CASH OR SPOT MARKET
TIMING OF DELIVERY
FORWARD OR FUTURES MARKET
EXCHANGE-TRADED MARKET
ORGANISATIONAL
STRUCTURE OVER-THE-COUNTER MARKET
Interest rate
Sf (lending)
S’f
ie
i’e
Df
(borrowing)
0 A B
Amount of loanable funds
Price
SS (borrowing)
P’e
Pe
D’s
Ds (lending)
0 A’ B’
Amount of securities
Private sector
NABARD
insurance
companies
• Diversification
• Economies of Scale
• Confidentiality
• Signalling
• SEBI