A brief description of Indian Capital Markets covering Indian financial system and its functions

1. Presented By: Amar Ranu Deepak Thakkar Dhiren Gokani Presentation on: Indian Capital Markets

4. Pillars of Financial System

5. Surplus Units Deficit Units Markets Intermediaries Market Based Bank Based Pillars of Financial System

12. Functions Facilitator Example Allocation of Risk Pooling of Resources Payment & Settlement System Managing the Incentive Problem Providing Information Transfer of Resources Across Time & Space Insurance Companies Mutual Funds Banks, Clearing House & DP’s Broker, Management (Issuer), Investor CRA’s, Stock Exchanges, Company, Regulators, etc Banks, Foreign Investors, Pension Funds, etc Sell protection against loss in value Create Fund and Invest on behalf of Investor SBI, NSCCL, NSDL etc Principal – Agent Problem Company Announcement, Disclosure Norms Cross Border Investments Functions of Financial System

16. Indian Capital Market Scenario Securities Market Forex Market Derivatives Market Indian Financial Markets Capital Markets (Long Term Securities) Money Market (Short term Securities)

17. Indian Capital Market Scenario Capital Markets (Long Term Securities) Primary Market (through Issuances) Secondary Market (through Stock Exchange trading) Equity Market (Companies & Other Body Corporates) Debt Market (Govt Securities & Corp Debt) Derivatives Market (Options & Futures) Wholesale Segment (Institutional & large investors) Retail Segment (Small Investors)

19. Indian Capital Market Scenario

20. Contents

21. Indian Capital Market – Facts & Figures Source: SEBI

22. Source: SEBI Indian Capital Market – Facts & Figures

23. Market Capitalization (% of GDP) Source: Federal Reserve Statistical Release Z.1, Indian Capital Market – Facts & Figures

24. Indian Capital Market – Facts & Figures

25. Indian Capital Market – Facts & Figures

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