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1. STRUCTURE OF INDIAN FINANCIAL
MARKET

2. Debt
market
Treasury bill
Call money market
Certificate of deposit
Commercial bill
Commercial paper
Cash management
Treasury bill
Call money market
Commercial bill
Commercial paper

3.  Any market place where buyer and seller
participate in the trade of financial securities ,
commodities and other fungible items of value at
low transaction cost and at prices that reflect supply
and demand.
 Securities include stock & bonds, and commodities
include precious metals or agricultural goods.
Financial market

4.  Reduces the Cost of Transactions
 Provides Liquidity to Financial Assets
 Facilitates Price Discovery
 Mobilization of Savings and their Channelization
into more Productive Uses
Functions

5. As money became a commodity , the money market
became a component of the financial market.
The money market is the market for the financial
assets that are close substitutes for money .
it is a market for over night to short term fund and
instrument having a maturity period of one or less
than one year.
Money market

6.  Financing trade
 Financing industry
 Profitable investment
 Self-sufficiency of commercial Bank
function

7. Treasury Bills
Call Money Market
Commercial Bills
Commercial Papers
Certificate Of Deposits
Cash Management Bill

8.  It deals in T-bills of short term duration 14 days, 182
days , 91 days , and 364 days.
 They are issued by the government & largely held by
RBI
 The rate of interest for T-bills is determined by the
market depending on demand & supply of fund in
the money market
Treasury bills

9.  The call money market is a market for very short –
term fund repayable on demand and with a maturity
period varying between one day to a fortnight.
 The money that is lent for one day in this market is
known as call money and if it exceeds one day but
less than 15 days it is referred to as notice market.
Call money market

10.  Deals in a bill of exchange, a seller draws a bill of
exchange on the buyer to make payment within a certain
period of time .
 The bill can be domestic bill or foreign bill of exchange.
 The commercial bill are purchase & discounted by
commercial bank & are rediscounted by FLS Like
IDBI,SIDBI ,EXIM bank etc.
Commercial bill

11.  The schemes of cp was introduce in 1990 for short term
financing issue . They can be issue in multiple of 5 lakh and in
multiple thereof.
 As per RBI guideline , cps can be issue on the following
condition :
a) the minimum tangible net worth of the company should be at
least rs 4 cr
b) The working capital limit should have been sanctioned by a
bank or financial institution.
Commercial paper

12.  Cds were introduce in June 1989.
 Cds are short term borrowings in the form of a
promissory notes having a maturity of not more than
15 days up to a maximum of one year. Cd is subject to
payment of stamp duty under Indian stamp act , 1899
(central act).
Certificate of deposit

13. The capital market is the market for securities, where
companies and the government can raise long term
funds. The capital market include the stock market and
the bond market.
Capital market

14.  Mobilization of saving
 Capital formation
 Provision of investment avenue
 Service provision
 Speed up economic growth and development
Role of capital market

16. It is a marketplace in which shares are issued and
traded, either through exchanges or over the counter
markets. It is also known as stock market, it is one of
the most vital areas of a market economy.
Equity market

17. Debt market, also known as bond market. In this
market, bonds are issued and traded. Bonds are
securities that represent debt owned by the issuer to
the investor.
Debt market

19. Primary market Secondary market
1. The place where fresh issue of shares is
made is known as primary market
The place where formerly issued securities
are traded is known as secondary market
2. Only ones securities can be sold Multiple times securities can be sold
3. Intermediary is underwriters brokers
4. Price is fixed Price is fluctuates, depends on the demand
and supply force
5.Securities are buying &selling between
company & investors
investors to Investor

20. Capital market Money market
1. The primary instruments utilized as a
part of the capital market are stocks,
debentures, shares, bonds and
securities
The primary credit instruments of the money
market are bills of exchange, call money
2. The capital market compact in
borrowing and lending of long term
funding which means the time period is
more than one year.
The money market make an agreement for
borrowing and lending of short term funds
which shows time period is one year or less
than one year.
3. capital market instruments carry high
risk
The instruments traded in money market
carry low risk
4. capital market are not that much liquid. The money market instruments are rich in
liquidity.