Structure of Indian Capital Market with Diagram
Broadly speaking the blogspot.com//search?q=what-is-capital-market-meaning">capital market is classified inwards to 2 categories. They are the Primary marketplace position (New Issues Market) in addition to the Secondary marketplace position (Old (Existing) Issues Market). This classification is done on the footing of the nature of the musical instrument brought inwards the market. However on the footing of the types of institutions involved inwards upper-case alphabetic quality market, it tin hold upwards classified into diverse categories such equally the Government Securities marketplace position or Gilt-edged market, Industrial Securities market, Development Financial Institutions (DFIs) in addition to Financial intermediaries. All of these components conduct maintain specific features to mention. The construction of the Indian upper-case alphabetic quality marketplace position has its distinct features. These unlike segments of the upper-case alphabetic quality marketplace position assist to educate the establishment of upper-case alphabetic quality marketplace position inwards many dimensions. The principal marketplace position helps to enhance fresh upper-case alphabetic quality inwards the market. In the secondary market, the buying in addition to selling (trading) of upper-case alphabetic quality marketplace position instruments takes place. The next nautical chart volition assist us inwards agreement the organizational construction of the Indian Capital market.
- Government Securities Market : This is too known equally the Gilt-edged market. This refers to the marketplace position for regime in addition to semi-government securities backed past times the Reserve Bank of Bharat (blogspot.com//search?q=what-is-capital-market-meaning" rel="nofollow" target="_blank">RBI).
- Industrial Securities Market : This is a marketplace position for industrial securities i.e. marketplace position for shares in addition to debentures of the existing in addition to novel corporate firms. Buying in addition to selling of such instruments accept house inwards this market. This marketplace position is farther classified into 2 types such equally the New Issues Market (Primary) in addition to the Old (Existing) Issues Market (secondary). In principal marketplace position fresh upper-case alphabetic quality is raised past times companies past times issuing novel shares, bonds, units of usual funds in addition to debentures. However inwards the secondary marketplace position already existing i.e former shares in addition to debentures are traded. This trading takes house through the registered stock exchanges. In Bharat nosotros conduct maintain 3 prominent stock exchanges. They are the Mumbai Stock Exchange (BSE), the National Stock Exchange (NSE) in addition to Over The Counter Exchange of Bharat (OTCEI).
- Development Financial Institutions (DFIs) : This is even in addition to then to a greater extent than or less other of import segment of Indian upper-case alphabetic quality market. This comprises diverse fiscal institutions. These tin hold upwards exceptional purpose institutions similar IFCI, ICICI, SFCs, IDBI, IIBI, UTI, etc. These fiscal institutions render long term finance for those purposes for which they are laid up.
- Financial Intermediaries : The 4th of import segment of the Indian upper-case alphabetic quality marketplace position is the fiscal intermediaries. This comprises diverse merchant banking institutions, usual funds, leasing finance companies, venture upper-case alphabetic quality companies in addition to other fiscal institutions.
SEBI Regulates Indian Capital Market
For the polish performance of the upper-case alphabetic quality marketplace position a proper coordination with higher upwards organizations in addition to segments is a prerequisite. In social club to regulate, promote in addition to straight the progress of the Indian Capital Market, the regime has prepare 'Securities in addition to Exchange Board of India' (SEBI). SEBI is the supreme authorization governing in addition to regulating the Capital Market of India.