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The Bombay Stock Exchange Limited (formerly, The Stock Exchange, Mumbai; popularly called The Bombay Stock Exchange, or BSE) is the oldest stock exchange in Asia.
It is located at Dalal Street, Mumbai, India.
The Bombay Stock Exchange was established in 1875.
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Around 4,800 Indian companies list on the stock exchange.
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A company can raise funds through issue of debentures too, but it bears a fixed rate of interest on it.
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The debenture issued by a company is an acknowledgement that a company has borrowed a certain amount of money, which it promises to repay at a future date. Therefore debentures are creditors for the company.
Debentures are fixed-interest securities or debt securities on which the issuer pays interest at a fixed rate and for a specific term.
Generally, the level of income paid on debentures is higher than the rate paid on cash investments because of the longer term of the investment.
Debentures can be classified as follows:-
a) Mortgage or Secured Debentures
b) Unsecured Debentures
c) Redeemable Debentures
d) Irredeemable Debentures
e) Registered Debentures
f) Bearer Debentures
g) First Debentures
h) Second Debentures
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The capital market is the market for medium and long term funds. It refers to all the organizations, institutions and instruments that provide long term funds.
The organizations and institutions which constitute the capital market include the new issue market, the stock exchange, the mutual funds, insurance companies, investment banks.
The capital market mainly focuses on meeting long term financial needs of the business sector.
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The business enterprise utilizes this market to procure finances for long term investments, such as buying plant ,machinery ,buildings, etc. funds in the capital market are raised by issuing a wide variety of securities which includes :-
• Equity shares or ownership securities
• Debentures or creditor ship securities
• Preference shares or securities having preferential claims
• Other innovative securities which are variant s securities, with new features added to provide a wider choice to investors.
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