Friday, April 15, 2022

Basics of Financial Markets

 The financial market has an important role to be played in bringing shared financial and consumer financial suppliers. While financial suppliers are investors, consumers of finance are business and industrialists. This is how the Indian financial market in general and the securities market in certain work. Financial markets in India consist of the main credit market, money market, foreign exchange market, debt market and capital market. Recently, the derivative market - OTC and Exchange traded - also appeared. This is popularly referred to as financial intermediation and is in the core of the Indian economy; bring investors and business together in symbiotic relationships. This is what consists of.

Banking system.

Indian banking has a multi-tier structure. The Indian reserve bank is a regulator of the banking system and monetary authority. Its function includes a license bank and regulation for a strong and stable banking system. RBI is an authority that issues records and bankers to the government and acts as a lender's last effort to another. It also acts as a credit controller in the monetary system. In front of banks there are PSU banks, private banks; Cooperative bank, small financial bank etc. And they joined to define the Indian banking system.

Indian securities market

The securities market provides an institutional framework for efficient capital flow in the economy. Capital market Convert saves investment for investors and convert business genealogies to funding for business. This basic setting in the securities market allows the flow of capital from households to businesses, in the framework of the regulated institution.

Market Securities include equity, index futures, index options, stock futures, stock options, long-term bonds, medium-term bonds, short-term bonds, money market securities, equity funds, hybrid funds, bound, etc. The security market is important to raise money for corporations and institutions and also for investors to allocate their money.

Indian commodity market

Commodity markets facilitate transactions between buyers and commodity sellers. This commodity is widely dividend into four categories Viz. Agricultural commodities, precious metals, industrial metals and energy products (oil and gas). Commodities can be traded in India in the spot market (for immediate delivery) or in the futures market (for shipping), or in the futures market (not for shipping) or in options (so as to switch to futures commodities). Commodity markets are basically used by industry, traders, importers and exporters to hedge commodity price risks

Foreign exchange market 

This is where currencies are exchanged and there are traders, arbitration, speculators and hedger in these markets. Globally, the Forex trading market is the largest compared to other asset classes. International trade growth makes it necessary to be able to determine the relative value of currencies that are given differences in their purchasing power. The need to exchange one currency to another to settle trade in goods and services carried by the risk of foreign exchange and which creates a strong forex market. India has had a rupee forward market offered by the bank for a long time, but offered by the Bank only opposes actual exposure. At present, it is possible to also trade currency pairs in the currency derivative segment of the Stock Exchange. The usinr, clear pair, the most popular and widely traded currency pair

Indian insurance market

Insurance business in India is regulated by Indian Insurance Regulatory and Development Authority (IRDA). This regulates life and non-soul insurance activities in India. Insurance is about sharing risks. Broadly, there are 3 sub categories at INS

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