Structure of Indian Money Market - Chart ↓
The entire coin marketplace seat inwards Republic of Republic of India tin last divided into 2 parts. They are organised coin marketplace seat in addition to the unorganized coin market. The unorganised coin marketplace seat tin besides last known every bit an unauthorized coin market. Both of these components incorporate several constituents. The next nautical chart volition assistance yous inwards agreement the organisational construction of the Indian coin market.
Components, SubMarkets of Indian Money Market ↓
After studying to a higher house organisational nautical chart of the Indian coin marketplace seat it is necessary to empathise diverse components or sub markets inside it. They are explained below.
- Call Money Market : It an of import sub marketplace seat of the Indian coin market. It is besides known every bit coin at telephone phone in addition to coin at brusque notice. It is besides called inter banking concern loan market. In this marketplace seat coin is demanded for extremely brusque period. The duration of such transactions is from few hours to xiv days. It is basically located inwards the industrial in addition to commercial locations such every bit Mumbai, Delhi, Calcutta, etc. These transactions assistance stock brokers in addition to dealers to fulfill their fiscal requirements. The charge per unit of measurement at which coin is made available is called every bit a telephone phone rate. Thus charge per unit of measurement is fixed past times the marketplace seat forces such every bit the need for in addition to render of money.
- Commercial Bill Market : It is a marketplace seat for the brusque term, self liquidating in addition to negotiable coin marketplace seat instrument. Commercial bills are used to finance the elbow grease in addition to storage of agriculture in addition to industrial goods inwards domestic in addition to unusual markets. The commercial nib marketplace seat inwards Republic of Republic of India is nonetheless underdeveloped.
- Treasury Bill Market : This is a marketplace seat for sale in addition to buy of brusque term regime securities. These securities are called every bit Treasury Bills which are promissory notes or fiscal bills issued past times the RBI on behalf of the Government of India. There are 2 types of treasury bills. (i) Ordinary or Regular Treasury Bills in addition to (ii) Ad Hoc Treasury Bills. The maturity catamenia of these securities arrive at from every bit depression every bit xiv days to every bit high every bit 364 days. They accept pop off really pop latterly due to high grade of security involved inwards them.
- Market for Certificate of Deposits (CDs) : It is over again an of import segment of the Indian coin market. The certificate of deposits is issued past times the commercial banks. They are worth the value of Rs. 25 lakh in addition to inwards multiple of Rs. 25 lakh. The minimum subscription of CD should last worth Rs. 1 Crore. The maturity catamenia of CD is every bit depression every bit three months in addition to every bit high every bit 1 year. These are the transferable investment musical instrument inwards a coin market. The regime initiated a marketplace seat of CDs inwards guild to widen the arrive at of instruments inwards the coin marketplace seat in addition to to provide a higher flexibility to investors for investing their brusque term money.
- Market for Commercial Papers (CPs) : It is the marketplace seat where the commercial papers are traded. Commercial newspaper (CP) is an investment musical instrument which tin last issued past times a listed companionship having working uppercase to a greater extent than than or equal to Rs. v cr. The CPs tin last issued inwards multiples of Rs. 25 lakhs. However the minimum subscription should at to the lowest degree last Rs. 1 cr. The maturity catamenia for the CP is minimum of three months in addition to maximum half-dozen months. This was introcuced past times the regime inwards 1990.
- Short Term Loan Market : It is a marketplace seat where the brusque term loan requirements of corporates are met past times the Commercial banks. Banks provide brusque term loans to corporates inwards the cast of cash credit or inwards the cast of overdraft. Cash credit is given to industrialists in addition to overdraft is given to businessmen.
