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‡ Sensex: 18051 as on 16.8.2010.
‡ CRR/ SLR:6/25 Repo/ Rev Repo: 5.75 /
4.50
‡ Crude Oil:$ 75.39 per barrel.
‡ Inflation: 9.97% GDP Rate: 8.60%
‡ Gold:18760 per 10 gms.
‡ Currency Valuations:$= Rs.46.58,
‡ Interest rates: SB/Loan= BRS 7.5-8%.
‡ Jobless rate: 7.32%
ë

‡ Financial Markets
‡ Financial Players
‡ Financial Instruments.
‡ Regulatory Environment in India
‡ SEBI
‡ RBI
  

‡ A Market is a place where buyers and


sellers come together to exchange
something
‡ Financial Markets are where financial
Instruments/products are exchanged.
‡ A Financial Market is known by type of
product traded in it
4   

Y  

    Y   
       
 

‡ Markets for short term


‡ Borrowing
‡ Lending
‡ Primarily used by Banks
‡ Typical Financial Instruments
‡ Bankers Acceptance
‡ Certificate of Deposit (CD)
‡ Treasury Bills
‡ Repo¶s
4  

‡ Debt
‡ Contract
‡ One Party lends to another Party
‡ Predetermined
‡ Interest Rates and Term
‡ Participants
‡ Banks
‡ Financial Institutions
‡ Mutual Funds
‡ Insurance Companies etc.
‡ Instruments
‡ Government Securities (G-Secs)
‡ Public Sector Units Bonds
‡ Corporate Securities
    

‡ Foreign Trade: Import, Export, Entrepot.


‡ Payments in Foreign Currency
‡ Forex Market
‡ Participants
‡ Government
‡ Payments for Imports
‡ Repayment of Loans
‡ Importers/ Exporters.
‡ Exchange Rates ± One Currency in terms of
other (Eg. 1 US Dollar = Rs.45)
‡ Bid Rate & Offer Rate
ë 

‡ Long Term Funds


‡ Raised by
‡ Government
‡ Corporates
‡ Trading Instruments used
‡ Shares
‡ Derivatives
‡ Units of Mutual Funds
   

‡ RBI IRDA
‡ NABARD AMFI
‡ EXIM BANK IDBI
‡ NHB NSDL / CSDL.
‡ DICGC NSE/BSE
‡ ECGC Merchant Banker
‡ SIDBI Investment Banks.
‡ SEBI
  

‡ Primary Market
‡ Instruments issued for first time
‡ Used by
‡ Government/Corporates/PSU¶s
‡ IPO/ IFO
‡ Initial Public/ fund Offering
‡ Secondary Market
‡ Trading of already issued
‡ Stocks
‡ Bonds
   

‡ Physical Assets
‡ Real Estate ,Gold/ Jewellery, Bullion.

‡ Financial Assets
‡ Savings Bank Account
‡ Fixed Deposits
‡ Post office
‡ Government Bonds, T Bills.
‡ Provident Funds, NSC, KVP etc.

!  

But ..
All these are fixed return instruments

Lets learn to take some risks and earn


more
á 
 á

‡ Share
‡ Signifies ownership in the company
‡ A company might have thousands of
Shareholders

‡ Which company issued shares for the


first time in the world???
‡ The Dutch East India Company in 1602
á 
 

‡ Place where the shares are traded


‡ BSE
‡ NSE
‡ BSE ± Bombay Stock Exchange
‡ Oldest Stock Exchange in Asia
‡ Sensex ± Sensitive Index
‡ Index of 30 Actively traded Companies
‡ NSE ± National Stock Exchange
‡ Incorporated in 1992
‡ Nifty
‡ Index of 50 Actively traded Companies
    "  c 

‡ Pre 1991
‡ Tight Control of Government
‡ Post 1991
‡ Liberalization
‡ Opening of the Economy
‡ Need for Supervision
‡ Regulation
‡ Regulatory Bodies
    "  c 

‡ RBI ± Reserve Bank of India


‡ Established in 1935
‡ Bankers Bank
‡ Regulates Indian Financial Markets
‡ SEBI ±Securities and Exchange Board
of India
‡ Incorporated in 1992
‡ Regulation of Securities Market
‡ Protecting the interests of Investors
á #  "  "

Discussion on Financial Scams.


á  

‡ www.wikipedia.org
‡ www.rbi.org.in
‡ www.sebi.gov.in
‡ www.nseindia.com
‡ www.bseindia.com
‡ www.moneycontrol.com

‡ And, !!!
Thank you !!

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