1. Financial Intermediaries who invariably intermediate between two segments of investor and spenders.

2. Financial Market
(a) Money Market
(b) Debt Market
(c) FOREX Market
(d) Capital Market

3. Money Market
(a) Call/Notice
(b) T. Bills
(c) Term Money
(d) CD
(e) ICD
(f) CP
(g) Repo
(h)Commercial Bills

4. Debt market
(a) Government Sector
(b) Bonds

5. Government Sector
(a) Central Government
(b) State Government

6. Bonds
(a) FI Bonds
(b) PSU Bonds
(c) Corporate Securities

7. Central Banking Authority (RBI)
(a) Monetary Control
(b) Supervision Over
Commercials Banks,
NBFCs,
Primary Dealers,
Financial Institutions,
Cooperatives Banks,
Clearing and Settlement System
(c) Management of Govt debt
(d) Banker to Govt.
(e) Lender of Last Resort to banks
(f) Regulation money markets through monetary instruments (CRR, SLR, Bank Rate, Repo rate)

8. Capital Markets Regulatory Authority (SEBI)
(a) Equity market and debt market supervision and control
(b) Supervision over
Stock exchanges,
Brokers,
Equity and debt market,

Investment Bankers(Merchant bankers),
Foreign institutional invertors,
Custodians,
Depositories,
Mutual funds,
Listed Companies,
Service provides to capital market like registrars.

9. Insurance and Pension Regulators (IRDA)
(a) Regulatory framework including rules and regulations for running insurance business
(b) Supervising all insurance companies both in general and life insurance business
(c) Regulation pricing, investments and cost structure of insurance companies
(d) Regulating insurance brokers including agencies both individuals and bank

10. Pensions
(a) Framing rules for pension funds
(b) Regulating all pension funds

11. Commercial Bank include Public Sector Banks, Foreign Banks and Private Banks.

12. Primary Dealers(PDs), deal in Govt. securities and deal in both primary and secondary markets.

13. Financial Institutions (FIs) which provide long-term funds for industry and agriculture.

14. Urban Cooperative banks are controlled by State Govt. and RBI.

15. Other Cooperative banks are controlled by NABARD and State Govt.

16. RBI carries out Govt. cash management through the issue of Bonds and Treasury Bills.

17. CRR is the mandatory deposit to be held by Banks with RBI. It is a percentage of their Demand and
Time liabilities.

18. SLR is the prescribed percentage of Demand and Time liabilities of a bank to be held in prescribed
securities, mostly Govt. securities.

19. Bank Rate is the standard rate at which RBI is prepared to buy or rediscount bills of exchange or other
eligible commercial paper from banks.

20. Open Market Oprations is refer to sale or purchase of government securities(of Central or State
governments or both).

21. Stock Exchange is duly approved by SEBI to provide sale and purchase of securities on behalf of
investors. Securities include equities, debt and derivatives.

22. Broker approved by the SEBI can operate on stock exchange. Brokers perform the job of intermediating
between buyers and sellers of securities.

23. FIIs are foreign-based funds authorized by SEBI to invest in the Indian equity and debt market through
stock exchange.


24. Depositories hold securities on DEMAT form. A depository transfer securities from the buyers to
sellers accounts in electronic form.

25. Mutual Funds is a form of collective Investment that pools money from investors and invest in stock,
Debt and other securities. It is less risky investment option for an individual investor.

26. Registrar maintains a register of share and debenture holders and process share and debenture
allocation when issues are subscribed.
27. Leasing , hire purchase and bill discounting are the domain of NBFCs.

28. RBI regulates the banking system in India, in terms of the RBI Act 1934 and BR Act 1949.”

29. RBI was constituted under the RBI Act 1934 and started functioning w.e.f. 1April 1935.

30. The Governor, four Deputy Governor and 15 Directors nominated by Union Government in RBI.

31. RBI has a headquarter at Mumbai.

32. Rs. 2,5,10,20,50,100,500 and 1000 are issued by RBI

33. Re.1 and all coins are issued by Government of India.

34. The RBI group has over 2800 currency chests, Nationalized banks have about 800, treasuries about
420and private sector banks have about 20 currency chests.

35. RBI acts as a “Lender of the last resort” for banks by rediscounting the bills and by refinance
mechanism for certain kind of credit.

36. The Board of Financial Supervision (BFS) was set up in 1994.

37. BSF was set up to oversee the Indian Financial System, comprising not only commercial banks,
state cooperative banks but also the e All India Financial institutions (AIFIs) and Non-banking Finance
Companies (NBFCs).

38. RBI Governor is chairman of BFS and it has a full time vice-chairman and six other members.

39. Bank’s aggregate investment in shares, CDs, Bonds, etc should not exceed the limit of 40 % of Bank’s
net owned funds as at the end of the previous year.

40. No bank should grant loans against CDs, FD issued by other banks and money Market Mutual Funds.

41. Banks should not section a new or additional facility to borrowers appearing in RBI’s list of “Willful
Defaulters” for a period of 5 years from the date of publication of the list by RBI.

42. Retail Banking is doing business with individual customers.

43. Wholesale Banking refers to doing banking with industrial and business entities. This segment of
business also called corporate banking/Commercial Banking.


44. Universal Banking refers to a super Financial Hub for marketing of all the financial products sold by
the private/public/government bodies under one roof.

45. A Depositary Receipt (DR) is type of negotiable (transferable) financial instrument that is traded on a
local stock exchange of a country but represents a security, usually in the form of equity that is issued by
a foreign publicly listed company.

46. ADR is American Depository Receipt and it is traded on a US national stock exchange, such as the
New York Stock Exchange or the American Stock Exchange.

47. GDR is Global Depository Receipt and it is commonly listed on European stock exchange such as
London Stock Exchange.

48. Both ADRs and GDRs are usually denominated in US Dollars, but can also be denominated in Euros.

49. Initial public offerings can also take the form of Deposit Receipt. DR can be traded publicly or over
the counter.

50. Participatory notes are like contract noted. They are issued by Foreign Institutional Investors (FIIs) to
entities that want to invest in the Indian stock market but do not want to register themselves with the
SEBI.

51. FIIs are required to report to the SEBI on a monthly basis if they issue, renew, cancel or redeem
Participatory Notes.

52. FIIs are not allowed to issue Participatory Notes to Indian nationals, person of Indian origin or overseas
corporate bodies (which are majority owned or controlled by NRIs).

53. The loan values under retail lending normally range between Rs.20,000 to Rs.100 lakh.

54.