Financial Institutions &

Markets
Dr. L. Mishra
.
 Indian Financial System

Indian
Financial
System

Financial Financial Financial Financial

Markets Institutions Instruments Services
 Financial Markets

Financial
Markets

Primary Market Secondary Market

 Secondary Markets
 Secondary Markets Instruments Secondary
Markets
 Market making : Giving two-way Stocks & Bonds Stock Exchanges
quotes (buying & selling rates) on
an instrument with the purpose of Government SBI-DFHI Ltd
creating a secondary market.
Securities
Market making can be done by
the Institution which has issued Money Market SBI-DFHI Ltd
the instrument or by another Instruments
institution for a fee. Commodities Commodity
Exchanges
Derivatives Stock &
Commodity
Exchanges
Foreign RBI, Forex
 Financial Markets

Financial
Markets

Foreign
Money Capital Derivatives Commodity
Exchange
Market Market Market Market
Market
 Financial Institutions

Financial
Institutions

Other
Financial Regulatory
Service Providers
Intermediaries Institutions
 Intermediation &
Disintermediation
 Cash Flow

Intermediation

Bank
As
Savers/ Intermediary
Investors Borrowers
Disintermediation
 Regulatory Institutions
Institutions / Markets Regulator

Banks Reserve Bank of India (RBI), GOI

Non-Banking Financial Companies RBI

(NBFCs)
Forex Market RBI

Money Market RBI

Capital Market Securities & Exchange Board of

India (SEBI)
Capital Market Participants SEBI
& Service Providers (mutual Funds,
ETFs, Credit Rating Agencies etc)
 Regulatory Institutions
Institutions / Markets Regulator
Commodities Market Forward Markets
Commission (FMC)
Insurance Market & Insurance Regulatory &
Institutions Development Authority
(IRDA)
Pension Funds Pension Fund Regulatory
& Development Authority
(PFRDA)
Derivatives Market SEBI, FMC, RBI, GOI
 Banking Institutions

Banking
Institutions

Commercial Development Investment

Banking Banking Banking
Institutions Institutions Institutions
 Banking Institutions

Banks

Commercial Co-operative Regional Rural

Banks Banks Banks

Public Sector New Private

Old Private
Banks Sector
Sector
(N-19, IDBI Banks
Banks
& SBI Group)
 Mixed & Universal Banking
 Mixed & Universal Banking


Commercial + Development = Mixed Banking
Banking Banking

 Commercial + Development + Investment = Universal Banking

Banking Banking Banking
 Development Financial Institutions
Sector Development Financial
Institution (DFI)
Medium & Large Scale Industry IFCI

SME Sector SIDBI

Infrastructure IDFC

Agriculture & Rural Development NABARD

Foreign Trade Export & Import Bank of India

Housing National Housing Bank (NHB)

Tourism Tourism Finance Corporation of India

(TFCI)
 Other Service Providers
 Credit Rating Agencies (ICRA, CRISIL, CARE)
 Factoring Companies (SBI Factors,, Foremost Factors)
 Depository Companies (NSDL, CDSL)
 Leasing & Hire Purchase Companies ( Tata Finance )
 Venture Capital Companies (TDICI, RCTFC)
 Housing Finance Companies (HDFC, DHFL)
 Mutual Funds (ICICI MF, HDFC MF)
 Exchange Traded Funds (Gold ETFs)
 Financial Instruments
 Zero Coupon Bonds
 Deep Discount Bonds
 Convertible Bonds
 ADRs/GDRs
 Foreign Currency Bonds (Yankee, Bulldog, Samurai)
 Euro- Dollar Bonds
 Treasury Bills
 Dated Securities (G-Secs)
 Commercial Papers
 Certificate of Deposits
 Preference Shares
 Call Money