FINANCIAL INSTITUTIONS

 FINANCIAL

INSTITUTIONS

FINANCIAL INSTITUTIONS

Financial Institutions are an important part of the Indian Financial System as they provide medium to long-term finance to different sectors of the economy.  Some of the important financial institutions are as follows

• National Housing Bank  Set-up on 9th July, 1988 to provide a sound, healthy, viable and cost effective housing finance system to all segments of the population.

• National Bank of Agriculture and Rural Development  (NABARD) for facilitating credit flow for promotion and development of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts.

• Industrial Finance Corporation of India Limited (IFCI) provides financial assistance to medium and large industries.

• Small Industries Development Bank of India (SIDBI) for promotion, financing and development of small scale industries in the economy.

• Mudra Bank provides loans at low rates to small entrepreneurs.

FINANCIAL MARKET

Financial market is an important part of financial sector.  It is the market, where financial transactions take place.  On the basis of short-term and long-term transactions, such markets are classified as follows

MONEY MARKET

• The cluster of financial institutions that deal in short-term securities and loans, gold and foreign exchange are termed as money markets.

Indian money market is broadly divided into two categories:

i. Organised money market which includes call money market, collateral loan market, treasury bill market, commercial bill market, banker’s acceptance market, certificates of deposits market, commercial paper market.

ii. Unorganised money market includes unregulated non-bank financial intermediaries such as money lenders, chit funds, nidhis etc.

CAPITAL MARKET

It is one of the most important segments of the Indian financial system.  It is the market available to the companies for meeting their requirements of the long-term funds.  These are markets for buying and selling equity and debt instruments.  It includes the stock market.

STOCK MARKET

A stock market, equity market or share market is the aggregation of buyers and sellers of stocks (also called shares).  These may include securities listed on a stock exchange as well as those only traded privately.

MAJOR STOCK EXCHANGES IN INDIA

The major stock exchanges in India are as follows

BOMBAY STOCK EXCHANGE(BSE)

Bombay Stock Exchange(BSE) is one of the oldest stock exchanges in the world (since 1875) and the oldest of Asia.  The share sensex of BSE includes 30 listed companies.  It has indices, viz (i) BSE 200, (ii)  BSE 100, (iii) BSE 500, (iv) SENSEX, (v) MIDCAP and (vi) SML CAP.

NATIONAL STOCK EXCHANGE (NSE)

It was established in November, 1992 on the recommendations of the pherwani committee.  However, it became a full-fledged stock exchange in 1993 and commenced operations in 1994.  In October 1995, it became the biggest stock exchange in India.  NSE share sensex includes 50 listed companies.

APPROVED STOCK EXCHANGES IN INDIA

• Vadodara Stock Exchange, Vadodara

• Coimbatore Stock Exchange, Coimbatore

• Bombay Stock Exchange, Mumbai

• Over the Counter Exchange of India, Mumbai

• National Stock Exchange, Mumbai

• Ahmedabad Stock Exchange, Ahmedabad

• Bangalore Stock Exchange, Bengaluru

• Bhubaneswar Stock Exchange, Bhubaneshwar

• Calcutta Stock Exchange, Kolkata

• Cochin Stock Exchange, Cochin

• Delhi Stock Exchange, Delhi

• Guwahati Stock Exchange, Guwahati

• Hyderabad Stock Exchange, Hyderabad

• Jaipur Stock Exchange, Jaipur

• Mangalore Stock Exchange, Mangalore

• Ludhiana Stock Exchange, Ludhiana

• Chennai Stock Exchange, Chennai

• Madhya Pradesh Stock Exchange, Indore

• Pune Stock Exchange, Pune

• Saurashtra Kutch Stock Exchange, Rajkot

COMMODITY EXCHANGE

There are six commodity exchanges in India

i.  Multi Commodity Exchange of India Limited (MCX), Mumbai

ii.    National Commodity and Derivatives Exchange Limited (NCDEX), Mumbai

iii.  Indian National Multi-Commodity Exchange (NMCE), Mumbai

iv.   Commodity Exchange Limited (ICEX), Mumbai

v.  ASE, Derivatives and Commodity Exchange Limited (ASE, DCEL), Mumbai

vi.  Universal Commodity Exchange (UCE), Hyderabad

THANKS FOR WATCH & READ

https://generalupsc.blogspot.com