PPT: Financial Markets | Indian Economy for UPSC CSE PDF Download

 Page 1


Lecture 17 
Financial Markets
Capstone IAS Learning
Page 2


Lecture 17 
Financial Markets
Capstone IAS Learning
What will we cover
What are financial markets ? 
Money and Capital Market 
Various terms associated with Capital Market  
Stock Exchanges and Stock Indices 
Various Regulatory Bodies
Page 3


Lecture 17 
Financial Markets
Capstone IAS Learning
What will we cover
What are financial markets ? 
Money and Capital Market 
Various terms associated with Capital Market  
Stock Exchanges and Stock Indices 
Various Regulatory Bodies
Financial Markets
Financial Market refers to a marketplace, where creation 
and trading of financial assets, such as shares, 
debentures, bonds, derivatives, currencies, etc. take place. 
It plays a crucial role in allocating limited resources, in 
the country’s economy. It acts as an intermediary 
between the savers and investors by mobilising funds 
between them. 
Financial Markets can be divided into two parts : 
1. Money Market - it caters to short-term fund 
requirements.(< 1 year) 
2. Capital Market - it caters to long-term fund 
requirements.(> 1 year)
Page 4


Lecture 17 
Financial Markets
Capstone IAS Learning
What will we cover
What are financial markets ? 
Money and Capital Market 
Various terms associated with Capital Market  
Stock Exchanges and Stock Indices 
Various Regulatory Bodies
Financial Markets
Financial Market refers to a marketplace, where creation 
and trading of financial assets, such as shares, 
debentures, bonds, derivatives, currencies, etc. take place. 
It plays a crucial role in allocating limited resources, in 
the country’s economy. It acts as an intermediary 
between the savers and investors by mobilising funds 
between them. 
Financial Markets can be divided into two parts : 
1. Money Market - it caters to short-term fund 
requirements.(< 1 year) 
2. Capital Market - it caters to long-term fund 
requirements.(> 1 year)
Functions of 
Financial 
Markets
Savings 
Mobilisation
Liquidity
Capital  
Formation
Intermediation
Page 5


Lecture 17 
Financial Markets
Capstone IAS Learning
What will we cover
What are financial markets ? 
Money and Capital Market 
Various terms associated with Capital Market  
Stock Exchanges and Stock Indices 
Various Regulatory Bodies
Financial Markets
Financial Market refers to a marketplace, where creation 
and trading of financial assets, such as shares, 
debentures, bonds, derivatives, currencies, etc. take place. 
It plays a crucial role in allocating limited resources, in 
the country’s economy. It acts as an intermediary 
between the savers and investors by mobilising funds 
between them. 
Financial Markets can be divided into two parts : 
1. Money Market - it caters to short-term fund 
requirements.(< 1 year) 
2. Capital Market - it caters to long-term fund 
requirements.(> 1 year)
Functions of 
Financial 
Markets
Savings 
Mobilisation
Liquidity
Capital  
Formation
Intermediation
Money Market
Organised 
That part of money 
market which comes 
under the regulatory 
ambit of organisations 
like RBI, SEBI etc.
Unorganised 
It is an old and ancient 
market, mainly made up 
of indigenous bankers 
and moneylenders.