Structure of Indian Capital Market amongst Diagram
Broadly speaking the capital market is classified inward to 2 categories. They are the Primary marketplace (New Issues Market) too the Secondary marketplace (Old (Existing) Issues Market). This classification is done on the footing of the nature of the musical instrument brought inward the market. However on the footing of the types of institutions involved inward working capital alphabetic lineament market, it tin hold out classified into diverse categories such every bit the Government Securities marketplace or Gilt-edged market, Industrial Securities market, Development Financial Institutions (DFIs) too Financial intermediaries. All of these components stimulate got specific features to mention. The construction of the Indian working capital alphabetic lineament marketplace has its distinct features. These unlike segments of the working capital alphabetic lineament marketplace assistance to prepare the establishment of working capital alphabetic lineament marketplace inward many dimensions. The principal marketplace helps to enhance fresh working capital alphabetic lineament inward the market. In the secondary market, the buying too selling (trading) of working capital alphabetic lineament marketplace instruments takes place. The next nautical chart volition assistance us inward agreement the organizational construction of the Indian Capital market.
- Government Securities Market : This is too known every bit the Gilt-edged market. This refers to the marketplace for regime too semi-government securities backed past times the Reserve Bank of Republic of Republic of India (RBI).
- Industrial Securities Market : This is a marketplace for industrial securities i.e. marketplace for shares too debentures of the existing too novel corporate firms. Buying too selling of such instruments accept house inward this market. This marketplace is farther classified into 2 types such every bit the New Issues Market (Primary) too the Old (Existing) Issues Market (secondary). In principal marketplace fresh working capital alphabetic lineament is raised past times companies past times issuing novel shares, bonds, units of usual funds too debentures. However inward the secondary marketplace already existing i.e former shares too debentures are traded. This trading takes house through the registered stock exchanges. In Republic of Republic of India nosotros stimulate got 3 prominent stock exchanges. They are the Mumbai Stock Exchange (BSE), the National Stock Exchange (NSE) too Over The Counter Exchange of Republic of Republic of India (OTCEI).
- Development Financial Institutions (DFIs) : This is nevertheless to a greater extent than or less other of import segment of Indian working capital alphabetic lineament market. This comprises diverse fiscal institutions. These tin hold out exceptional purpose institutions similar IFCI, ICICI, SFCs, IDBI, IIBI, UTI, etc. These fiscal institutions render long term finance for those purposes for which they are laid up.
- Financial Intermediaries : The 4th of import segment of the Indian working capital alphabetic lineament marketplace is the fiscal intermediaries. This comprises diverse merchant banking institutions, usual funds, leasing finance companies, venture working capital alphabetic lineament companies too other fiscal institutions.
SEBI Regulates Indian Capital Market
For the smoothen surgical procedure of the working capital alphabetic lineament marketplace a proper coordination amid higher upwards organizations too segments is a prerequisite. In gild to regulate, promote too straight the progress of the Indian Capital Market, the regime has laid 'Securities too Exchange Board of India' (SEBI). SEBI is the supreme ascendance governing too regulating the Capital Market of India.
