PRESENTED BY: PRIYANKA PRIYADARSINI- 05 SHRADHANJALI PRADHAN- 06

market is a venue where goods and services are exchanged.

financial market is a place where individuals and organizations wanting to borrow funds are brought together with those having a surplus of funds

FINANCIAL MARKET ORGANISED MARKET ORGANISED MARKET

ORGANISED MARKET

INDUSTRIAL SECURITIES MARKET

GOVT. SECURITIES MARKET

LONG TERM LOAN MARKET

PRIMARY MARKET

SECONDAR Y NARKET

TERM LOAN MARKET

MARKET FOR MORTGAGE

MARKET FOR FINANCIAL GUARENTIES

CALL MONEY MARKET

COMMERCIAL BILL MARKET

TREASURY BILL MARKET

SHORT TERM LOAN MARKET MONEY LENDORS,INDEGE NOUS BANKERS

There are standardized rules and regulation governing financial dealing. These markets are controlled by RBI. These market can be classified into 2 category:i) Capital market ii) Money market

Capital Market:
The market concerned with relatively long term (greater than one year original maturity) debt and equity instruments (e.g bonds and stocks) is called capital market.

Money Market:
The

market concerned with buying and selling of short term (less than one year original maturity) government and corporate debt securities is called money market.

Capital market may be devided into 3 categories: i) Industrial securities market ii) Govt. securities market iii) Long term loan market

It is a market for industrial sercurities like equity shares, preference share, bond or debenture. Govt. securities market Here industrial concerns raise there capital by issuing appropriate instrument. It can be subdivided into 2: i) primary market ii) Secondary market

 Primary Market: A market where new securities are bought and sold for the 1st time (a new issues market) is called primary market. Here there are 3 ways by which a company may raise capital: i) Public issue ii) Right issue iii) Private issue

Secondary Market:
A market where existing (used) securities are bought and sold rather than new issues are called secondary market.

Otherwise known as Gilt- Edged security market Govt. securities(short- term, long-term) are traded Securities are issued by the Central Govt., State Govt., Semi- Govt. authoritie like City corporation, All India and State

Here development bank and commercial bank play a significant role by supplying loan to corporate customers It is also classified into: i) Term loan market ii) Mortgage market iii) Financial guarantees market

In India many industrial financing institution created by the got both at the. national and regional levels to supply long and medium term loans to corporate customers directly as well as indirectly. example IDBI, IFCI, ICICI

A guarantee market is a center where finance is provided against the guarantee of a reputed persona in the financial circle . Guarantee is a contract to discharge the liability of a 3rd party in case of its . It act as a security from the creditor point of view

In this market number of money lenders , indigenous bankers traders etc , who lend money to the public. There are also private financial companies, chit fond etc , whose activity are not controlled by RBI.

It deals with financial assets and securities which have a maturity period of one year. It is the market purely for short term funds.

Call money market Commercial bill market Treasury bill market Short term lone market

The call money market is the market for extremely short period loans say day 1 to 14days . It is highly liquid. The loans are repayable on the demand at the option of either the lender or borrower. The special features of this market is that the interest rate is varies from day today and even from hour-to-hour.

It is a market of bill of exchange. In case of a credit sale , the seller may draw a bill of exchange on the buyer. The buyer may accept such a bill promising to pay at a later date the amount specified in the bill. The seller need not wait until the due date of the bill . Instead he can get immediate payment by discounting the bill.

It is the market which have short term maturity period . It is a promissory note or financial bill issued by the govt. It is highly liquid because its repayment is guaranteed by the govt. There are two types of treasury bill market; ordinary treasury bills and ad hoc treasury bills .

Ordinary treasury bills are issued to the public, banks and other financial institute. To meet its short term financial needs. Ad hoc treasury bills are issued in favor of the RBI only . Treasury bills have a maturity period of 91 days or 182 days or 364days only.

It is the market where short term loans are given to the corporate customers to meeting their working capital requirement . Commercial banks plays an important role in this market. It provides short term loan in the form of cash credit and overdraft.