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Indian Financial Markets

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Presentation on theme: "Indian Financial Markets"— Presentation transcript:

1 Indian Financial Markets

2 Contents Financial Markets Shares and Stocks
Regulatory Environment in India SEBI RBI

3 Financial Markets A Market is a place where buyers and sellers come together to exchange something Financial Markets are where financial Instruments/products are exchanged. A Financial Market is known by type of product traded in it

4 Different Financial Markets
Money Market Debt Market Forex Market Capital Market

5 Money Market Markets for short term Primarily used by Banks
Borrowing Lending Primarily used by Banks Typical Financial Instruments Bankers Acceptance Certificate of Deposit (CD) Treasury Bills Repo’s

6 Debt Market Debt Participants Instruments Contract
One Party lends to another Party Predetermined Interest Rates and Term Participants Banks Financial Institutions Mutual Funds Insurance Companies etc. Instruments Government Securities (G-Secs) Public Sector Units Bonds Corporate Securities

7 Foreign Exchange Market
Foreign Goods Payments in Foreign Currency Forex Market Participants Government Payments for Imports Repayment of Loans Importers Exchange Rates – One Currency in terms of other (Eg. 1 US Dollar = 45 Rupees) Bid Rate Offer Rate

8 Capital Market Long Term Funds Raised by Trading Instruments used
Government Corporates Trading Instruments used Shares Derivatives Units of Mutual Funds

9 Financial Markets Primary Market Secondary Market
Instruments issued for first time Used by Government/Corporates/PSU’s IPO Initial Public Offering Secondary Market Trading of already issued Stocks Bonds Stock Exchange

10 The primary market is that part of the capital markets that deals with the issue of new securities.
Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. An initial public offering (IPO), referred simply as an "offering" or "flotation", is when a company (called the issuer) issues common stock or shares to the public for the first time

11 Secondary Market The secondary market, also known as the aftermarket, is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold.

12 Stock and Shares Stock Share Capital raised by corporations
Through issue and distribution of shares Share Signifies ownership in the company A company might have thousands of Shareholders.

13 Stock Exchange Place where the shares are traded
BSE NSE BSE – Bombay Stock Exchange Oldest Stock Exchange in Asia Sensex – Sensitive Index Index of 30 Actively traded Companies NSE – National Stock Exchange Incorporated in 1992 Nifty Index of 50 Actively traded Companies

14 Functions of stock exchange
Maintains active trading. Fixation of prices. Ensures safe and fair dealing. Aids in financing the industry. Dissemination of information. Performance inducer. Self regulating organization.

15 1.Bombay stock exchange 2.National stock exchange(Mumbai) 3.Banglore stock exchange 4.Utter pradesh stock exchange(kanpur) 5.Magadh stock exchange(Patna) 6.Ahmedabad stock exchange 7.vadodara stock exchange(Baroda) 8.Bhubaneswar stock exchange 9.Calcutta stock exchange(kolkata) 10.Madras stock exchange

16 11.Cochin stock exchange 12.coimbatore stock exchange 13.Gauhati stock exchange 14.Hydrabad stock exchange 15.Madhya pradesh stock exchange(indore) 16.Jaipur stock exchange 17.Ludhina stock exchange 18.Mangalore stock exchange 19.Pune stock exchange 20.saurashtrakutch stock exchange

17 Ahmedabad » Bangalore » Bhubaneshwar » Calcutta » Cochin » Coimbatore » Delhi » Guwahati » Hyderabad » Jaipur » Ludhiana » Madhya Pradesh » Madras » Magadh » Mangalore » Meerut » OTC Exchange Of India » Pune » Saurashtra Kutch » UttarPradesh » Vadodara

18 HOW RATING IS GIVEN TO THE COMPANY?
Basically rating is given after see the company 'image,management quality,assets quality,auditors quality,accounting accuracy.Rating is not fixed, it may be change. The rating grades are: AAA: HIGHEST SAFTY AA: HIGH SAFTY A: ADEQUATE SAFTY BBB: MODERATE SAFTY BB: IN ADEQUATE SAFTY BC&D: HIGH RISK AND DEFAULT

19 CREDIT RATING AGENCY IN INDIA
1.CRISIL 2.ICRA 3.CARE 4.DPCR

20 Regulatory Environment in India
RBI – Reserve Bank of India Established in 1935 Bankers Bank Regulates Indian Financial Markets SEBI –Securities and Exchange Board of India Incorporated in 1992 Regulation of Securities Market Protecting the interests of Investors

21 Thank you !!


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