Description
The money markets are used for the raising of short term finance, sometimes for loans that are expected to be paid back as early as overnight.
PRESENTATION ON CAPITAL MARKET
DEFINATION OF CAPITAL MARKET
Capital market can be defined as:
“A market for medium to long-term financial instruments.
Financial instruments traded in the capital market include shares, and bonds issued by the Government, State governments, corporate borrowers and financial institutions.”
THREE ELEMENTS OF CAPITAL MARKET
• FINANCIAL ASSETS/INSTRUMENTS/SECURITIES • FINANCIAL INTERMEDIARIES
• FINANCIAL MARKETS
FINANCIAL ASSETS/ INSTRUMENTS/SECURITIES
The tangible/physical asset is one whose value depends on its physical properties such as buildings, machines, furniture, vehicles and so on. The entity/economic unit that offers the future cash flows is the issuer of the financial ‘instrument’ and the owner of the security is the investor.
FINANCIAL INTERMEDIARIES
Financial intermediaries are institutions that channelise the savings if investors into investments/loans. As institutional source of finance ,they act as a link between the savers and the investors which results in institutionalization of personal savings. Their main functions is to convert direct financial assets into indirect securities. The indirect securities offer to the individual investor better investor alternative then the direct/primary security by pooling which it is created, for example, units of mutual funds.
FINANCIAL MARKETS
• money market: is created by financial relationship between suppliers and demanders of short term funds having maturities of one year or less.
• securities markets: is a financial relationship created by a number of institutions and arrangements that allows suppliers and demanders of long term funds with maturities exceeding one year to make transactions.
Types of securities market
• Primary Market
Primary market provides an opportunity to the issuers of securities, both Government and corporations, to raise resources to meet their requirements of investment. Securities, in the form of equity or debt, can be issued in domestic /international markets at face value, discount or premium.
•
Secondary Market
Secondary market refers to a market where securities are traded after being offered to the public in the primary market or listed on the Stock Exchange. Secondary market comprises of equity, derivatives and the debt markets.
Products of capital market • • • • Shares Bonds Debenture Government securities
PARTICIPANTS AND OTHER DETAILS OF CAPITAL MARKET
Regulatory Authority Number of Stock Exchanges Major Stock Exchanges Number of Foreign Institutional Investors Number of Merchant Bankers Number of Portfolio Managers Number of Stock Brokers registered with SEBI Number of Sub Brokers Number of Venture Capital Funds Number of Depositories
SEBI 22 2 (BSE/NSE) 1,051 145 175 14,848 33,127 94 2
WHY TO INVEST IN INDIAN CAPITAL MARKET
•
• • •
•
India’s accounting standards are closer to international standards. SEBI has made corporate governance guidelines mandatory for listed companies. Mutual funds are permitted to invest overseas up to $3 billion. Almost 100 per cent risk free electronic settlement through depository system . Economists project India to become the third largest economy in the world by 2040.
Sebi considers circuit limit on listing days
• The primary market advisory committee give proposal to sebi. • One of the key proposals is introducing a 10% circuit filter on the first two days of trading.
• Indo thai securities a broking firm that listed on nov 2 moved between Rs 98.9 and 18.85 on the NSE before closing at Rs 23.15. The issue was price at 74 a share. • E-IPO another proposal likely to crop up at the meeting ,may bring down listing time to 3-4 days from 12 at present.
Investment Pattern according to various Categories.
percentage
15% 25% Postal deposits
Bank deposits
25% insurance 20% mutual funds shares
15%
Investment Pattern according to Profession
30%
25%
20%
Salaried
15% Professionals Business Others 10%
5%
0% Postal deposits Bank deposits insurance Mutual funds Shares
Why people prefer Capital Market?
For safety
for good returns
for liquidity
for tax saving benefits
16%
8%
13%
63%
THANK YOU
doc_606232177.pptx
The money markets are used for the raising of short term finance, sometimes for loans that are expected to be paid back as early as overnight.
PRESENTATION ON CAPITAL MARKET
DEFINATION OF CAPITAL MARKET
Capital market can be defined as:
“A market for medium to long-term financial instruments.
Financial instruments traded in the capital market include shares, and bonds issued by the Government, State governments, corporate borrowers and financial institutions.”
THREE ELEMENTS OF CAPITAL MARKET
• FINANCIAL ASSETS/INSTRUMENTS/SECURITIES • FINANCIAL INTERMEDIARIES
• FINANCIAL MARKETS
FINANCIAL ASSETS/ INSTRUMENTS/SECURITIES
The tangible/physical asset is one whose value depends on its physical properties such as buildings, machines, furniture, vehicles and so on. The entity/economic unit that offers the future cash flows is the issuer of the financial ‘instrument’ and the owner of the security is the investor.
FINANCIAL INTERMEDIARIES
Financial intermediaries are institutions that channelise the savings if investors into investments/loans. As institutional source of finance ,they act as a link between the savers and the investors which results in institutionalization of personal savings. Their main functions is to convert direct financial assets into indirect securities. The indirect securities offer to the individual investor better investor alternative then the direct/primary security by pooling which it is created, for example, units of mutual funds.
FINANCIAL MARKETS
• money market: is created by financial relationship between suppliers and demanders of short term funds having maturities of one year or less.
• securities markets: is a financial relationship created by a number of institutions and arrangements that allows suppliers and demanders of long term funds with maturities exceeding one year to make transactions.
Types of securities market
• Primary Market
Primary market provides an opportunity to the issuers of securities, both Government and corporations, to raise resources to meet their requirements of investment. Securities, in the form of equity or debt, can be issued in domestic /international markets at face value, discount or premium.
•
Secondary Market
Secondary market refers to a market where securities are traded after being offered to the public in the primary market or listed on the Stock Exchange. Secondary market comprises of equity, derivatives and the debt markets.
Products of capital market • • • • Shares Bonds Debenture Government securities
PARTICIPANTS AND OTHER DETAILS OF CAPITAL MARKET
Regulatory Authority Number of Stock Exchanges Major Stock Exchanges Number of Foreign Institutional Investors Number of Merchant Bankers Number of Portfolio Managers Number of Stock Brokers registered with SEBI Number of Sub Brokers Number of Venture Capital Funds Number of Depositories
SEBI 22 2 (BSE/NSE) 1,051 145 175 14,848 33,127 94 2
WHY TO INVEST IN INDIAN CAPITAL MARKET
•
• • •
•
India’s accounting standards are closer to international standards. SEBI has made corporate governance guidelines mandatory for listed companies. Mutual funds are permitted to invest overseas up to $3 billion. Almost 100 per cent risk free electronic settlement through depository system . Economists project India to become the third largest economy in the world by 2040.
Sebi considers circuit limit on listing days
• The primary market advisory committee give proposal to sebi. • One of the key proposals is introducing a 10% circuit filter on the first two days of trading.
• Indo thai securities a broking firm that listed on nov 2 moved between Rs 98.9 and 18.85 on the NSE before closing at Rs 23.15. The issue was price at 74 a share. • E-IPO another proposal likely to crop up at the meeting ,may bring down listing time to 3-4 days from 12 at present.
Investment Pattern according to various Categories.
percentage
15% 25% Postal deposits
Bank deposits
25% insurance 20% mutual funds shares
15%
Investment Pattern according to Profession
30%
25%
20%
Salaried
15% Professionals Business Others 10%
5%
0% Postal deposits Bank deposits insurance Mutual funds Shares
Why people prefer Capital Market?
For safety
for good returns
for liquidity
for tax saving benefits
16%
8%
13%
63%
THANK YOU
doc_606232177.pptx