Group No. 05
• Aruna Raman-Roll No.05
• Cyrus Gordon- Roll No. 15
• Divesh Narverkar- Roll No. 35
• Tejal Shah –Roll No. 45
• Pankaj Tari- Roll No. 55
• 1.Indian financial system-Banks and
2. Regulatory architecture-functions
of various regulators
3. Money & Capital markets
4.Monetary & Fiscal policy
5. Interplay between monetary &
• A financial system or financial sector functions
as an intermediary and facilitates the flow of
funds from the areas of surplus to the areas of
• Financial System of any country consists of
financial markets, financial intermediation and
financial instruments or financial products .
Constituents of financial
• A Financial Market can be defined as the market in
which financial assets are created or transferred.
• Mechanism which allows people to trade.
▫ (Short term instrument)
The most important distinction between the two:
The difference in the period of maturity.
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▫ (Long term instrument)
• Capital Market - The capital market is designed to finance the long-term investments. The transactions taking place in this market will be for periods over a year.
• Money Market- The money market is a wholesale debt market for low-risk, highly-liquid, short-term instrument. Funds are available in this market for periods ranging from a single day up to a year. This market is dominated mostly by government,
banks and financial institutions.
• Credit Market- Credit market is a place where banks, FIs and NBFCs purvey short, medium and long-term loans to corporate
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• Forex Market - The Forex market deals with the multicurrency requirements,which are met by the exchange of currencies.
Depending on the exchange rate that is applicable, the transfer of funds takes place in this market. This is one of the most developed and integrated market across the globe.
• Ministry of Finance
Government Securities: Issued by central government, state government, semi government authorities such as municipalities, state electricity boards and public sectors corporations.
Industrial Securities: These are securities issued by the corporate sector to finance their long term and working capital requirements. The Major Instruments that fall under Industrial Securities are Debentures
Call money market
Commercial Paper (CP)
Certificate of deposit (CD)
Repo market ( Repurchase agreement ) etc.
Regulatory Architecture - Functions of
• Regulators exercise regulatory or supervisory authority over a variety of endeavors in India. The financial system in India is regulated by independent regulators in the field of
banking, insurance, capital market, commodities market,
and pension funds. However, Government of India plays a
significant role in controlling the financial system in India and influences the roles of such regulators at least to some extent.
• Statutory Bodies via parliamentary enactments:
Reserve Bank of India, Securities and Exchange Board of
India, Insurance Regulatory and Development Authority.
• Part of the Ministries of the Government of India:
Forward Market Commission India & PFRDA under the
The Following is a List of Regulators in India
Financial system and monetary
Reserve Bank of India
Financial Audit and Accounting
Institute of Chartered Accountants of India
Forward Markets Commission
Company- related matters
Registrar of Companies
Inland Waterways for shipping and...
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