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Presented by
Naina karra
Roll no (38)
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ë n institutional framework existing in a country to
enable financial transactions.
ë It allows the transfer of money between savers and
borrowers.
ë It encourages saving and investment.
ë n efficient function of financial system facilities the
free flow of funds
ë The Responsibility of financial system is to mobiles
saving.
ë It facilities expansion of market.
   
In finance, financial system is the system that
allows the transfer of money between savers
and borrowers. It comprises a set of complex
&closely interconnected financial institution,
markets, services, practices and
transactions´.
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ë Provision of liquidity.
ë Mobilization of saving.
ë Promoting growth in economy.
ë To arrange for creation and distribution of
money and credit.
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ë  financial market includes money market, capital
market, and forex market.
ë It is important component of financial system.
ë Buying and selling of securities
ë Stock exchange is e.g. of financial market.
ë It is classified into four parts
1. Money market
2. Capital market
3. Debt market
4. Forex market
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ë Institutions are banks, insurance companies,
mutual funds.
ë It provides financial services.
ë It is responsible for transfer of funds.
ë It facilities flow of money.
ë Mobilization of savings
ë ct as financial intermediates.
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ë Security exchange board of India (SEBI)
ë Reserve bank of India (RBI)
ë Central Board of Direct Taxes (CBDT)
ë Central Board of excise and Customs
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ë Financial services are provided by financial
institutions. Banks, insurance companies.
ë It includes MC and liability Management
Companies.
ë Ensuring efficient distribution
ë Help in development of fund raised& in
decision making.
ë Contributes towards the growth and
development.
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. Banking and financial services
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ë Financial instruments are also called as financial
securities
ë Transfer form one to another
ë They posses liquidity
ë These instruments may be short term or for long
term
ë Tax benefits
ë It is classified into
1. Primary securities
2. Secondary securities
á   á 
  
 

ë pex institution in money market


ë Smooth functioning of financial system
ë Flow of money supply
ë Provide liquidity to system
ë Liquidity is controlled though money supply
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ë Financial system is characterized by


presence of integrated, organized,
&regulated financial markets and institutions.
ë Financial system is network of arteries, &
carrying various parts of body.
ë It is regulated by RBI & SEBI.
ë So financial system play important role.
Thank you

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