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National Stock Exchange of India (NSE)

February 18, 08 by FinanceTurf

The National Stock Exchange of India Limited (NSE) is a Mumbai-based stock exchange.

National Stock Exchange
National Stock Exchange

The main objective of NSE is to provide a nation wide transparent market for equity, debt and other variation of securities.

It’s the largest stock exchange in India.

NSE is mutually-owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries but its ownership and management operate as separate entities.

National Stock Exchange
National Stock Exchange

Vibrant features of NSE are:-

2) Securities traded – The NSE has two segments for trading in securities

a) Capital market segment – equity, debentures and hybrids,

b) Money market segment – T-bills, Cps, CDs, PSU bonds etc.

2) Payment and delivery on the NSE are completed within 15 days of the transactions.

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Money Market..

February 15, 08 by FinanceTurf

Money market is the market for short term funds meant for use for a period of up to 1 year.
Money market provides means for raising funds for meeting short term requirements so cash on one hand, and the deployment of surplus funds for short periods on the other.

The money market consists of financial institutions and dealers in money or credit who wish to either borrow or lend. Participants borrow and lend for short periods of time.

Money market trades in short term financial instruments commonly called "paper".

This contrasts with the capital market for longer-term funding, which is supplied by bonds and equity. The money market is not a particular place in a geographical sense.

It is a term to describe all organizations and institutions which deal or facilitate dealings in short term debt instruments.
These instruments include the Reserve Bank, the State Bank of India, other commercial banks, cooperative banks, LIC, GIC, and UTI.

Money Market
Money Market

Common Money Market Instruments are:-

• Banker’s acceptance - A draft issued by a bank that will be accepted for payment, effectively the same as a cashier’s check.

• Certificate of deposit - A time deposit at a bank with a specific maturity date; large-denomination certificates of deposits can be sold before maturity.

• Repurchase agreements - Short-term loans-normally for less than two weeks and frequently for one day-arranged by selling securities to an investor with an agreement to repurchase them at a fixed price on a fixed date.

• Commercial paper - An unsecured promissory notes with a fixed maturity of one to 270 days; usually sold at a discount from face value.

• Treasury bills - Short-term debt obligations of a national government that are issued to mature in 3 to 12 months.

• Money market mutual funds - Pooled short maturity, high quality investments which buy money market securities on behalf of retail or institutional investors.

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Primary Market

February 14, 08 by FinanceTurf

Primary Market is the market for new long term capital. The primary is that part of the capital markets that deals with the issuance of new securities.

It is the market in which a security is sold for the first time and is therefore also referred to as the New Issue Market (NIM). In a primary issue, the securities are issued by the company directly to investors.

The company receives the money and issues new securities certificates to the investors. The process of selling new issues to investors is called underwriting.

Primary issues are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business. The primary market performs the crucial function of facilitating capital formation in the economy.

It is through this market that the savings of surplus units are channelled to the deficit units which utilize these funds for investment in buildings, plants, machinery, purchase of technology, etc.

Features of Primary Market are:-

1. This is the market for new long term capital. The primary market is the market where the securities are sold for the first time. Therefore it is also called New Issue Market (NIM).

2. In a primary issue, the securities are issued by the company directly to investors.

3. The company receives the money and issue new security certificates to the investors.

4. Primary issues are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business.

5. The primary market performs the crucial function of facilitating capital formation in the economy

6. The new issue market does not include certain other sources of new long term external finance, such as loans from financial institutions. Borrowers in the new issue market may be raising capital for converting private capital into public capital; this is known as ‘going public’.

Methods of issuing securities in the Primary Market:-

1. Initial Public Offer;

2. Rights Issue (For existing Companies); and

3. Preferential Issue.



Capital Market

February 13, 08 by FinanceTurf

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.

Global Market In Hand
Global Market In Hand

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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All About Market..

February 12, 08 by FinanceTurf

Financial market is a crucial link in the saving investment process.They serve to transfer money capital or financial resources from savers to entrepreneurial borrowers. ’

Financial markets bring together borrowers and lenders, making available funds to those willing to pay for their use ’. Financial markets consists of two major segments

1. Capital Market - the market for medium and long term funds
2. Money Market - the market for short term funds…

Financial markets facilitate:

The raising of capital (in the capital markets);
The transfer of risk (in the derivatives markets); and
International trade (in the currency markets).

They are used to match those who want capital to those who have it.