Professional Documents
Culture Documents
Assignment:1 Indian Financial System (Aaysha Agrawal. 20021021614)
Assignment:1 Indian Financial System (Aaysha Agrawal. 20021021614)
What do you understand about financial system? How financial system and
economy are related to each other?
A financial system is a collection of institutions, such as banks, insurance firms, and stock exchanges,
that allow for the exchange of funds. In general sense, it is a relationship between seekers of funds
(Mainly business fund and Government) & Suppliers (Mainly households) who help in flow of money
in terms of savings & Income & financial services.
Borrowers, lenders, and creditors are transferring current Funds to support enterprises for
consumption or productive investment, and look for a return on their financial holdings. In addition,
the financial system contains a collection of regulations and procedures that creditors and lenders
utilise to determine which projects are funded, who funds the projects, and the extent of a financial
transaction.
b) Money market-
• Treasury bills
• certificate of deposit
• call /notice money
• commercial papers.
2- Financial Instruments
• foreign exchange
• money market instruments
• depository receipts
• forex market
• derivates market
3-Financial Participants-
• issuers
• investors
• brokers and dealers
• registrars
4- Financial Regulators
• reserve bank of India
• markets securities and exchange board of India
• Federal Reserve & Pension Company
• Security Exchange commission
• Bank of England/ FCA
• FCA/ Prudential Regulatory authorities.
5-financial services
• mergers and acquisitions
• research and advise
• investment banking
• asset management
• venture capital
• specialised financial solutions