Saminar on Financial Market Money Market By Sanjay Sindagi

1. Wel Come To All

2. Chapter-2 Seminar On :

3. What Is Financial Market?
“ A Financial Market is an Financial Institution or
arrangement that facilitates the Exchange of financial
instruments like Shares, Debentures, Commercial
Papers, Bills and Treasury bills etc ”
In other words,
“ A Financial Market is arrangement for
facilitating buying and selling of financial assets or
securities or financial claims”

4. Definitions of Financial Market
 According to Brigham Eugene F.
“ The Place where people and organizations wanting to
borrow money are brought together with those having
surplus funds is called a Financial market.“
 According to investopedia.com
“Broad term describing any marketplace where buyers
and sellers participate in the trade of assets such as
equities, bonds, currencies and derivatives.”

5. The main aim of Financial Market is -
Link between the “Savers” and “Investors”

6. It Facilitates expansion of Trade and Industries over
“Space“ and “Time”.

7. Functions of Financial market
 Agency Functions
 Productive Use
 Capital Formation
 Transfer of Funds
 Financial Functions
 Providing the Funds
 Providing the Earning Assets
 Providing Liquidity

8. Components Of Financial Market
o Primary Market
o Secondary Market
o Money Market
o Capital Market
o Debt Market
o Equity Market
o Financial Service Market
o Depository
o Non – Depository

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12. Money Market is a market where short term
Financial Instruments, assets and claims are traded. It
is concerned with the supply and demand for
investible funds.
In other words, Money Market refers It is
market where short term fund and near money assets
are borrowed.
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According to Crowther :
“It is the collective name given to the various firms
and institutions that deal in the various grades of near money”
According to RBI Report :
Money Market is the centre for dealings mainly of short –
term character, in money assets, It meets short term
requirements of borrowers and provide liquidity or cash to the
lenders.

14.  Short term Finance :
 Dealings :
 Existence Of Sub-Markets :
 Less Risk :
 Period :
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15.  Short term Finance :
 Dealings :
 Existence Of Sub-Markets :
 Less Risk :
 Period :
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16.  Short term Finance :
 Dealings :
 Existence Of Sub-Markets :
 Less Risk :
 Period :
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17.  Short term Finance :
 Dealings :
 Existence Of Sub-Markets :
 Less Risk :
 Period :
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18.  Short term Finance :
 Dealings :
 Existence Of Sub-Markets :
 Less Risk :
 Period :
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19.  It provides Finance to Trade and Finance :
 It provides opportunity for ideal Investment :
 It effective Monitory Management :
 It helps for Economic Development :
 It helps for development of efficient Banking
System :
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20.  It provides Finance to Trade and Finance :
 It provides opportunity for ideal Investment :
 It effective Monitory Management :
 It helps for Economic Development :
 It helps for development of efficient Banking
System :
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21.  It provides Finance to Trade and Finance :
 It provides opportunity for ideal Investment :
 It effective Monitory Management :
 It helps for Economic Development :
 It helps for development of efficient Banking
System :
M
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n
e
y
M
a
r
k
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t

22.  It provides Finance to Trade and Finance :
 It provides opportunity for ideal Investment :
 It effective Monitory Management :
 It helps for Economic Development :
 It helps for development of efficient Banking
System :
M
o
n
e
y
M
a
r
k
e
t

23.  It provides Finance to Trade and Finance :
 It provides opportunity for ideal Investment :
 It effective Monitory Management :
 It helps for Economic Development :
 It helps for development of efficient Banking
System :
M
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24. Instruments of Money
Market
Instruments
 Call Money
 Notice Money or Short Term Money
 Treasury Bills
 Commercial Bills
 Commercial Papers
 Certificates of Deposits
 Discount House
 Acceptance House
 Bill Brokers
 Inter Bank Participation Certificate
 Inter Corporate Deposits

25. 1. Call Money, Notice Money or
Short term Money
Instruments
Advances made by banks to other financial institutions, or
corporate and personal customers, that are repayable either upon
demand (call) or within 14 days (short notice)
The call money deals in short term finance repayable on
demand, with a maturity period varying from one day to 14 days.

26. 2. Treasury Bills
Instruments
Treasury bills are instrument of short-term borrowing by
the Central bank of the nation , issued as promissory notes under
discount

27. 3. Commercial Bills
Instruments
A commercial bill also called a bank bill or bill of
exchange
is a payment order directing your bank to pay a sum of money to
the holder of the bill at a future time.

28. 4. Commercial Papers
Instruments
Commercial paper is an unsecured promissory note with
a fixed maturity of no more than 270 days. Commercial paper is a
money-market security issued (sold) by large corporations to
get money to meet short term debt

29. 5. Certificate Of Deposits
Instruments
A certificate of deposit is a promissory note issued by
a bank. It is a time deposit that restricts holders from
withdrawing funds on demand. Although it is still possible to
withdraw the money, this action will often incur a penalty. The
term of a CD generally ranges from one month to five years.

30. 6. Discount House
Instruments
A discount house is a money dealer that participates in the
buying and discounting of bills of exchange and other financial
products such as money markets, certain government bonds and
banker's acceptances.

31. 7. Acceptance House
Instruments
An acceptance house guarantees the payment of bills
used to finance trade deals and goods in shipment. Its profit is the
difference between the discounted amount it guarantees to pay and
the full amount of the bill that it undertakes to collect from the
original creditor.

32. 8. Inter Corporate Deposits
Instruments
An Inter-Corporate Deposit (ICD) is an unsecured loan
extended by one corporate to another. Existing mainly as a refuge
for low rated corporate, this market allows funds surplus corporate to
lend to other corporate.

33. 9.Repurchase Agreement
Repo is a form of overnight borrowing and is used
by those who deal in Government.
Instruments

34. 10.Interbank participation Certificate
Instruments
Participation Certificates, as a money market instrument
were initially intended to serve as a short-term money market
instrument. Participation certificates were utilized by the financial
institutions for ‘parking’ their funds for increasingly long maturities
and hence this instrument was not development for evening out
liquidity between banks and/or financial institutions.

35. PlayersInMoneyMarket

36. 1. Banks
PlayersInMoneyMarket

37. Unorganized Sectors
PlayersInMoneyMarket
1. Indigenous
Banker
II. Money lenders
III. Nidhi’s
IV. Chit Funds

38. Findings And Suggestions

39. Conclusion :
Financial market helps mainly in finance
need, where finance is treated as
life blood of every business.
Financial market act a very important
role in Economic Development also.
So, It has a very wide scope in the
world.

40. Thank You

41. Sanjay Tinga Rizwan
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Prepared By : Sanjay Sindagi