Financial Securities by Nishant Gupta & Upendra

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Financial Securities market

Types of Securities market

Capital market

Commodity market

Money market

Derivatives market

Insurance marketForeign Exchange market


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Securities marketan overview

Primary market

An aggregate of 10,075,102 million (US $ 223,197million) were raised by the government andcorporate sector during 2009-10 as against6,588,920 million (US $ 129,321 million) in 2008-09,an increase of 52.91%. Private placement accountedfor 93.07% of the domestic total resourcemobilisation by the Corporate Sector. Resourcemobilisation through euro issues escalatedsignificantly by 233.48% to `159,670 million (US $3,537 million) in 2009-10.

Secondary market

The All-India market capitalization was around `61,704,205 million (US $ 1,366,952 million) at the


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Contd.

Cash market

During 2009-10, the trading volumes on the equity segment of Exchangesincreased significantly by 43.26% y-o-y to 55,184,700 million (US $1,222,523 million) from 38,520,970 million (US $ 756,054 million) in 2008-09.

Government Securities

The aggregate trading volumes in central and state government datedsecurities on SGL was 9,018,385 crore in 2009-10 as compared with6,645,488 crore in 2008-09.

Derivatives market

The total exchange traded equity derivatives in Indian stock marketswitnessed a turnover of 176,638,990 million (US $ 39,21,825 million) during2009-10 as against 110,227,501 million (US $3,335,698million) during thepreceding fiscal year.

Institutional Investment

By the year 2009-10, the net investments


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SWOT Analysis

Strength

1. The first and for most thing of strength of Indian stockmarket is its ability to provide high return.

2. SEBI a regulatory body of Indian stock market who

protects the interest of investors.

3. Large number of securities which provides medium forinvestment.

4. Single stock future, India is world leader.

5. Large no. of brokers who plays a role of facilitator forinvestment.


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Weakness

1. volatility i.e.- high risk .

. Opportunity

1. Stock market provides an opportunity to money lenderand money seeker to invest and use money for theirplan.

2. It provides an opportunity to the investor to be the

owner of the Company

3. Indicator of the economic growth

. Threats


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ANALYSIS OF INDIAN FINANCIALMARKET


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Equities derivatives market


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Resource mobilisation


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Assets under management


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Net investment by FIIs & MutualFunds


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Market Capitalisation


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SECURITIES EquityDebenturesCertificate of DepositsCommercial PaperInter corporatedepositsADR & GDR


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Certificate of Deposits

Scheduled commercial banks in multiple of Rs.

1 lac.

Maturity Period- 7days and one year.

CDs will be issued at discount to face value

Discount rate will be freely determined.

Negotiable


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Commercial Paper

Commercial Paper (CP) can be issued by alisted company which has a net worth of atleast Rs. 10 crores & a working capital limit ofnot less than Rs. 25 crore.

CPs will be issued in multiples of Rs. 5 lac &multiples

Maturity period- 7 days to 1 year

They will be freely transferable by


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The company can raise money through CP upto a maximum amount equivalent to 20% ofits working capital limits

a company will have to obtain PI + rating

maintain the current ratio of 1.33 : 1 to beeligible to issue CP


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As an interest reduction exercise, the TATAFINANCE made an issue of Commercial Paperto the extent of Rs.10 crores, which was ratedby CRISIL as P1 +, which is the best rating for

a short-term instrument.


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Inter corporate deposits

Inter-Corporate Deposits (ICD)is anunsecured borrowing by corporate and FIsfrom other corporate entities registered underthe Companies Act 1956.

Inter-corporate deposits are deposits madeby one company with another company, andusually carry a term of six months.

Tenor ranges from 1 day to 1 year

The bi est advanta e ofinter-cor orate
http://www.debt-syndication.com/inter_corpor_deposits.htmhttp://www.debt-syndication.com/inter_corpor_deposits.htm


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ADR , GDR

American depository receipt and globaldepository receipt.

Example:

Infosys & LIC housing Finance ltd.


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References

www.debt-syndication.com

Monthly report by nseindia

Financial Management By I.M.PANDEY
http://www.debt-syndication.com/http://www.debt-syndication.com/

Financial Securities by Nishant Gupta & Upendra

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