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ARUN KANNAN

MBA 3RD

SEM

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A capital market is a market for securities (debt orequity), where business enterprises (companies)

and governments can raise long-term funds. It isdefined as a market in which money is providedfor periods longer than a year

PRIMARY MARKET

SECONDARY MARKET

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PRIMARY MARKET : FIRST TIME SALESOF EQUITY

also called the new issue market, is the marketfor issuing new securities. Many companies,especially small and medium scale, enter the

primary market to raise money from the publicto expand their businesses. They sell theirsecurities to the public through an initial publicoffering.

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The foreignexchange market (forex, FX, orcurrency market) is a worldwide decentralizedover-the-counter financial market for the

trading of currencies.. The foreign exchangemarket determines the relative values ofdifferent currencies.

The price of one currency viewed in relationto another currency is called exchange rate

Eg Rs 50 = 1 USD

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The money market is a component of thefinancial markets for assets involved in short-term borrowing and lending with original

maturities of one year or shorter time frames.Trading in the money markets involvesTreasury bills, commercial paper, bankers'acceptances, certificates of deposit, federal

funds, and short-lived mortgage- and asset-backed securities.[1] It provides liquidityfunding for the global financial system.

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Securities and Exchange Board of India (SEBI)

Reserve Bank of India

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Established on April 1, 1935 in accordance with

the provisions of the RBI Act, 1934.

The Central Office of the Reserve Bank has

been in Mumbai.

It acts as the apex monetary authority of the

country

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Regulator and supervisor of the financialsystem

Prescribes broad parameters of banking

operations Maintain public confidence, protectdepositors' interest and provide cost-effectivebanking services

Authority On Foreign Exchange

Manages the Foreign Exchange ManagementAct, 1999. Facilitate external trade, payment,promote orderly development andmaintenance of foreign exchange market

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Monetary Authority

Formulation and Implementation of monetarypolicies. Maintaining price stability and ensuring

adequate flow of credit to the Productive sectors.

Issuer of currency:

Issues and exchanges or destroys currency and coins.

Provide the public adequate quantity of supplies oFcurrency notes and coins.

Related Functions:

Banker to the Government: performs merchantbanking function for the central and the stategovernments. Maintains banking accounts of allscheduled banks

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Securities and Exchange Board of India(SEBI) was first established in the year1988

Its a non-statutory body for regulating

the securities market

It became an autonomous body in 1992

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regulating the business in stock exchanges andany other securities markets

registering and regulating the working of stock

brokers, sub-brokers, share transfer agents,bankers to an issue, trustees of trust deeds.

promoting investors' education and training of

intermediaries of securities markets prohibiting insider trading in securities

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THE END