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Financial Securities market

Types of Securities market

Capital market market market market market

Commodity Money

Derivatives Insurance Foreign

Exchange market

Securities market an overview

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Primary market

An aggregate of 10,075,102 million (US $ 223,197 million) were raised by the government and corporate sector during 2009-10 as against 6,588,920 million (US $ 129,321 million) in 2008-09, an increase of 52.91%. Private placement accounted for 93.07% of the domestic total resource mobilisation by the Corporate Sector. Resource mobilisation through euro issues escalated significantly by 233.48% to `159,670 million (US $ 3,537 million) in 2009-10.

Secondary market

The All-India market capitalization was around ` 61,704,205 million (US $ 1,366,952 million) at the

Contd.

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Cash market

During 2009-10, the trading volumes on the equity segment of Exchanges increased significantly by 43.26% y-o-y to 55,184,700 million (US $ 1,222,523 million) from 38,520,970 million (US $ 756,054 million) in 200809.

Government Securities

The aggregate trading volumes in central and state government dated securities on SGL was 9,018,385 crore in 2009-10 as compared with 6,645,488 crore in 2008-09.

Derivatives market

The total exchange traded equity derivatives in Indian stock markets witnessed a turnover of 176,638,990 million (US $ 39,21,825 million) during 2009-10 as against 110,227,501 million (US $3,335,698million) during the preceding fiscal year.

Institutional Investment

By the year 2009-10, the net investments

SWOT Analysis

1.

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Strength
The first and for most thing of strength of Indian stock market is its ability to provide high return. SEBI a regulatory body of Indian stock market who protects the interest of investors. Large number of securities which provides medium for investment. Single stock future, India is world leader. Large no. of brokers who plays a role of facilitator for investment.

2.

3.

4. 5.

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1.

Weakness volatility i.e.- high risk . Opportunity

. 1.

Stock market provides an opportunity to money lender and money seeker to invest and use money for their plan. It provides an opportunity to the investor to be the owner of the Company Indicator of the economic growth Threats

2.

3.

ANALYSIS OF INDIAN FINANCIAL MARKET

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Equities derivatives market

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Resource mobilisation

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Assets under management

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Net investment by FIIs & Mutual Funds

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Market Capitalisation

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FINANCIAL SECURITIES Equity

Debentures Certificate of Deposits Commercial Paper Inter corporate deposits ADR & GDR

Certificate of Deposits
Scheduled

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1 lac.

commercial banks in multiple of Rs.

Maturity

Period- 7days and one year.

CDs

will be issued at discount to face value rate will be freely determined.

Discount

Negotiable

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Commercial Paper
Commercial

Paper (CP) can be issued by a listed company which has a net worth of at least Rs. 10 crores & a working capital limit of not less than Rs. 25 crore. will be issued in multiples of Rs. 5 lac & multiples period- 7 days to 1 year

CPs

Maturity

They

will be freely transferable by

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The

company can raise money through CP up to a maximum amount equivalent to 20% of its working capital limits company will have to obtain PI + rating

maintain

the current ratio of 1.33 : 1 to be eligible to issue CP

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As

an interest reduction exercise, the TATA FINANCE made an issue of Commercial Paper to the extent of Rs.10 crores, which was rated by CRISIL as P1 +, which is the best rating for a short-term instrument.

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Inter corporate deposits

Inter-Corporate

Deposits (ICD) is an unsecured borrowing by corporate and FIs from other corporate entities registered under the Companies Act 1956. deposits are deposits made by one company with another company, and usually carry a term of six months. Tenor ranges from 1 day to 1 year biggest advantage of inter-corporate

Inter-corporate

The

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ADR , GDR
American

depository receipt and global depository receipt.

Example:

Infosys & LIC housing Finance ltd.

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References
www.debt-syndication.com Monthly

report by nseindia Management By I.M.PANDEY

Financial