FINANCIAL

MARKET

Presented By- ANKITA PANDA,

SOUMYA PANDA,PRAGYAN NAYAK,
IPSITA MISHRA,SUPRITEE BEHERA
CONTENT:-
 What is Market ?
 What is Financial Market ?

 Types of Financial Market ?

 Types of Capital Market ?

 Regulatory bodies of Capital Market in

India :
1-RBI & Its functions.
2-SEBI & Its Functions.
WHAT IS MARKET ?
 A market is a place where two parties are
involved in transaction of goods and services in
exchange of money. The two parties involved
are:
1.Buyer
2. Seller
 In a market the buyer and seller comes on a
common platform, where buyer purchases goods
and services from the seller in exchange of
money.
WHAT IS FINANCIAL MARKET ?
 A place where individuals are involved in
any kind of financial transaction refers to
financial market.

 Financial market is a platform where

buyers and sellers are involved in sale and
purchase of financial products like shares,
mutual funds, bonds and so on.
 TYPES OF FINACIAL MARKET :
 CAPITAL MARKET - A market where individuals
invest for a longer duration i.e. more than a year is
called as capital market. In a capital market various
financial institutions raise money from individuals and
invest it for a longer period.
SECOUNDARY
PRIMARY MARKET
MARKET
Primary Market is a
form of capital Secondary market is
market where various a form of capital
companies issue new market where stocks
stock, shares and and securities which
bonds to investors in have been previously
the form of IPO’s . issued are bought
and sold
 TYPES OF CAPITAL MARKET
 Stock Markets: Stock Market is a type of Capital market which
deals with the issuance and trading of shares and stocks at a
certain price.
 Bond Markets: Bond Market is a form of capital market where
buyers and sellers are involved in the trading of bonds.
 Commodity Market: A market which facilitates the sale and
purchase of raw goods is called a commodity market.

 Money Market: As the name suggests, money market involves

individuals who deal with the lending and borrowing of money for
a short time frame.
 Derivatives Market: The market which deals with the trading of
contracts which are derived from any other asset is called as
derivative market.
 Future Market: Future market is a type of financial market
which deals with the trading of financial instruments at a specific
rate where in the delivery takes place in future.
 Insurance Market: Insurance market deals with the
trading of insurance products. Insurance companies pay a
certain amount to the immediate family members of owner
of the policy in case of his untimely death.
 Foreign Exchange Market: Foreign exchange market is
a globally operating market dealing in the sale and
purchase of foreign currencies.
 Private Market: Private market is a form of market
where transaction of financial products takes place
between two parties directly.
 Mortgage Market: A type of market where various
financial organizations are involved in providing loans to
individuals on various residential and commercial
properties for a specific duration is called a mortgage
market.
REGULATORY BODIES OF
CAPITAL IN INDIA:
 RESERVE BANK SEBI
OF INDIA
RESERVE BANK OF INDIA
 The Reserve Bank of India (RBI) is the central
bank of India, which was established on April 1,
1935, under the Reserve Bank of India Act.
 The Reserve Bank of India uses monetary policy to
create financial stability in India, and it is charged
with regulating the country's currency and credit
systems.
 The RBI was originally set up as a private entity
but was nationalized in 1949. The reserve bank is
governed by a central board of directors appointed
by the national government.
MAJOR FUNCTIONS OF RBI:
 Monopoly of Note Issue-RBI acts as a sole
currency authority of the country.

 Banker’s Bank-As bankers’ bank, the RBI holds

a part of the cash reserves of commercial banks
and lends them funds for short periods.

 Banker to the Government-The RBI acts as

the banker to the government of India and State
Governments (except Jammu and Kashmir).

 Controller of Credit-The RBI controls the total

supply of money and bank credit to sub serve the
country’s interest.
SECURITIES AND EXCHANGE BOARD OF
INDIA [SEBI]
 Securities and Exchange Board of India is the
regulator for all the security markets in India.
 It was established in 1988 and was given
statutory power on 12 April 1992 through the
SEBI Act, 1992.
 SEBI has to be responsive to 3 groups which
constitute the market:
1.The issuer of securities
2.The investor
3.The market intermediaries
 FUNCTIONS OF SEBI:
• It checks price rigging
Protective • It prohibited insider trading & unfair
trading
Function • Fair practices & code of conduct in
security market

• Training of intermediaries of securities

Development exchange.
Function • Adopting flexible & acceptable approach
in stock exchange.

• Code of conduct to regulate the

Regulatory intermediaries .
• Register & regulate all type of broker,
Function agents, trustees and merchant banks.
THANK YOU