its a detail about indial financial system

1. Gahlot Institute Of
Management And
Research…
Presentation on:
Indian Financial System
Presented By:
Ankita Parab & Amit Gupta

2. Indian Financial System…
Meaning:
 allows the transfer of money between
savers and borrowers.
 supplies the necessary financial inputs for
the production of goods and services .
 meets the short term and long term capital
needs of households, corporate houses,
Govt. and foreigners

3. Role Of Financial System…
 To link the savers & investors.
 To achieve optimum allocation of risk bearing.
 National Growth.
 Both firms and individuals can invest in
companies through financial markets .

4. Classification Of Financial
System…
O FINANCIAL INSTITUTION.
O FINANCIAL MARKET.
O FINANCIAL INSTRUMENT.

5. FINANCIAL INSTITUTION…
Financial
Institution
Banks Non-banking Developmental
Regulatory
Institutions

6. O Banking
• RBI
• Commercial banks
• Co-operative banks
• Post office savings banks
O Non-banking
• LIC
• GIC
• UTI
• HDFC
O Developmental
• ICICI, IDBI,IFCI
• NABARD
• SIDBI
• Tourism finance
corporation
• SFCs
O Regulatory
Institutions
• SEBI
• RBI
• IRDA- insurance
regulatory and
development authority
• Board of regulatory and
development authority-
BIFR

7. FINANCIAL MARKET
Financial
Market
Money
Market
Capital/
Securities
Market
Secondary/
Stock Market
Primary
Market

8. Money Market
O dealing in monetary assets of short term
nature, less than one year.
O Major participant are: RBI and Commercial
Banks
Instruments of money market
O Call money instruments- one day loan
O Treasury bills- meeting short term deficits of
govt
O Commercial papers- short term instruments
issued by corporate- introduced in Jan 1990
O Repo transactions- maturity of 1 day to six
months

9. Primary/new issue
market
O A market for new
issues i.e. a market
for fresh capital.
O provides the channel
for sale of new
securities, not
previously available.
Secondary market/
stock market
O A market for
old/existing securities.
O a place where buyers
and sellers of
securities can enter
into transactions to
purchase and sell
shares, bonds,
debentures etc.
 Capital Market
A market for long term funds
focus on financing of fixed investments
two segments: Primary market and secondary market

10. Financial Instruments
Financial Instruments
Primary Securities Secondary Securities

11. PRIMARY SECURITIES
O Equity, Preference, Debt and Various
combinations.
Secondary Securities
O Mutual Fund Units and Insurance Policies
etc.

12. Regulatory Authorities Of
Financial System…
O Reserve Bank of India
O Securities and Exchange Board of
India
O Insurance Regulatory and
Development Authority
O Forward Market Commission India
(FMC)
O Pension Fund Regulatory and
Development Aulthority (PFRDA)

13. Reserve Bank of India
O also called as the central bank of the
country.
O established on April 1, 1935,
nationalization in 1949.
O initially established in Calcutta but was
permanently moved to Mumbai in 1937.
O the Reserve Bank is fully owned by the
Government of India.
O the Governor sits and is where policies
are formulated.

14. Securities and Exchange
Board of India
O first established in the year 1988
O a non-statutory body for regulating the
securities market.
O became an autonomous body in 1992
O its headquarters at the business district
of Bandra Kurla Complex in Mumbai

15. Insurance Regulatory and
Development Authority
O a national agency of the Government of
India
O based in Hyderabad (Andhra Pradesh).
O formed by an Act of Indian Parliament
known as IRDA Act 1999, which was
amended in 2002
O Mission of IRDA is "to protect the
interests of the policyholders, to
regulate, promote and ensure orderly
growth of the insurance industry "

16. Forward Market
Commission India (FMC)
O (FMC) headquartered at Mumbai
O statutory body set up in 1953 under
the Forward Contracts (Regulation)
Act, 1952
O a regulatory authority which is
overseen by the Ministry of Consumer
Affairs, Food and Public Distribution,
Govt. of India.

17. Pension Fund Regulatory
and Development
Aulthority
O established by Government of India on
23rd August, 2003.
O act as a regulator for the pension
sector.
O PFRDA is development and regulation
of pension sector in India.