Financial Markets & Financial Services in India

Financial markets are the centres that provide facilities for buying and selling of financial assets. Financial markets have developed significantly worldwide and are undergoing constant innovations to improve monetary impulses in different segments of the economy. Till the early 1990s, most of the financial markets in India were characterised by controls over the pricing of financial assets, restrictions on flows or transactions, barriers to entry, low liquidity and high transaction costs. These characteristics came in the way of development of the markets and allocative efficiency of resources channelled through them. From 1991 onward, wide-ranging financial market reforms have been implemented as a part of economic reforms measures. Financial markets in India are getting increasingly integrated, domestically and globally. Reform measures in terms of free pricing, removal of barriers to flows and broad-based participation have yielded results in terms of fairly high degree of integration of the money market, the government securities market and the foreign exchange market, although in varying degrees. Financial markets are at the core of the transmission mechanism of monetary policy. In India, financial markets have been developed with a specific emphasis on increasing allocative efficiency of resources and promoting financial stability. The purpose of this book is to provide an understanding of the organization, operation and working of financial markets and services in India. The areas covered include the following: Capital Market; Primary Market; Participants in the Primary Market; Legislations and Regulators in the Capital Market ; Secondary Market; Operators in the Secondary Market; Stock Exchanges; Bombay Stock Exchange; National Stock Exchange of India; Over the Counter Exchange of India; Stock Market Indices; Derivatives Market; Money Market; Corporate Debt Market; Government Securities Market; Securities and Exchange Board of India; Credit Rating; Factoring and Forfeiting; Discounting of Bills; Securitisation of Debt; Credit Information Bureaus. Each chapter ends with two lists of questions: (a) short answer type questions and (b) essay type questions. The book is designed to interest a cross-section of readers, viz. teachers and students of economics, commerce, law, public administration, business management, chartered accountancy and company secretaryship. It will also serve the needs of legislators, business executives, entrepreneurs and investors, and others interested in financial sector developments in India.