CHAPTER III OVERVIEW OF LITERATURE

After the formulation of the problem, a brief summary of it should be written down and the researcher should have to do its extensive literature survey connected with the problem. For this purpose, abstracting and indexing journals and published or unpublished bibliographies are first place to go Academic Journals, Conference proceedings, reports etc. must be tapped depending upon nature of the problem. The literature for this project includes various newspapers, magazines

Economic Survey for the information regarding the depository services by depository participants. In the external sector of the Economic survey the trends over the period of time are given.

INDIAN CAPITAL MARKET OVERVIEW The function of the financial market is to facilitate the transfer of funds from surplus sectors (lenders) to deficit sectors (borrowers).Normally , households have investigable funds or savings, which they lend to borrowers in the corporate and public sectors whose requirement of funds far exceed their savings. A financial market consists of investors or buyers of securities, borrowers or seller of securities, intermediaries and regulatory bodies.

ORGANISED MONEY MARKET Indian financial system consists of money market and capital market. The money market has two components the organized and the unorganized. The organized market is dominated by commercial banks. The other major participants are Reserve Bank of India, Life Insurance Corporation, General Insurance Corporation, and Unit Trust Of India, Securities Trading Corporation of India Ltd., other primary dealers, commercial banks and mutual funds. The core of the money market is the inter bank call money market whereby short term money borrowing /lending is effected to manage temporary liquidity mismatches.