indian financial system part i

8/7/2019 INDIAN FINANCIAL SYSTEM PART I

1/10


2/10

1. Mobilisation of Savings

Savings are utilised for productive purpose. Thereforesound financial system should offer incentives toattract savings and make them available for productiveventures.

2. Provision of Liquidity

The term liquidity refers to cash and other assetswhich can be converted into cash easily without loss of

value and time. The RBI plays a dominant role in thefinancial system to ensure liquidity.


3/10

1. Capital Formation2. Economic Growth3. Development of Backward Areas4. Generates Employments---- Direct employment in

Capital markets and Indirect employment in sectors werefunds are provided

5. Foreign Capital6. Development of Stock Market7. Development role of Financial Institutions8. Investment opportunity9. Revival of sick units10. Easy liquidity


4/10

y Meaning of Stock Exchange-an association, organisationor body of individualswhether incorporated or not,established for the purpose ofassisting, regulating andcontrolling business inbuying, selling and dealing insecurities

y Features of Stock Exchange

1. Organised body

2. Facilitates listing of shares

3. Facilitates trading of shares

4. Controlled by SEBI

5. Membership

6. Trading through registeredbrokers

7. Governing Body8. Location

9. Central Gov. recognition


5/10

COMPANY LAW BOARD

SEBI

CORPORATE GOVERNANCE


6/10

y Meaning Of Company Law Board

CLB is an independent quasi judicial body constituted

by Central Government in 1991. This body monitorscases of oppression, and mismanagement bycompanys management


7/10

y Meaning Of SEBI

The Securities Exchange Board of India was set up on

12th April, 1988. The main purpose of setting up SEBIwas to develop and regulate stock markets in India. In1992, SEBI Act was passed. The Act gave statutorypowers to SEBI. SEBI began its operations in 1992


8/10

y Objectives Of SEBI

1. To protect the interest of investors

2. To bring professionalism in the working of

intermediaries in the capital markets i.e. brokers,mutual funds, stock exchanges etc.

3. To create a good financial climate, so that companiescan raise long term funds through issue of securities

shares and debentures


9/10

1. Protection of Investors Interest

2. Guidelines on Capital Issues

3. Regulates working of Mutual Funds

4. Restrictions on Inside Trading5. Regulates Merchant Banking

6. Regulates Stock Brokers Activities

7. Portfolio Management

8. Regulates Takeover, and Mergers9. Research and publicity

10. Monitoring of Stock Exchanges


10/10

Corporate Governance may be defined as a sets of rules,

regulations, procedures and practices to be adopted bya firms management to manage its affairs in the bestinterest of shareholders

indian financial system part i

Documents