INTRODUCTION

The Capital market is a market for financial assets which have a long or
indefinite maturity. Generally, it deals with long term securities which have a maturity period
of above one year. Capital market may be further divided into three types Industrial
securities market, Government securities market and Long term loans market. Industrial
securities market is further divided into two types primary market or new issue market and
secondary market or stock exchange. Government securities market is also called as GiltEdged securities market. It is the market where Government securities are traded. Long term
loans market is divided into three types Term loans market, Mortgages market and financial
guarantees market.
Absence of capital market instruments acts as a deterrent to capital formation and
economic growth. Resources would remain idle if finances are not funneled through the
capital market.
a) The capital market instruments serves as an important source for the productive use of
the economys savings. It mobilizes the savings of the peoples for further investment
and thus avoids their wastage in unproductive uses.
b) It provides incentives to saving and facilitates capital formation by offering suitable
rates of interest as the price of capital.
c) It provides an avenue for investors, particularly the household sector to invest in
financial assets which are more productive than physical assets.
d) It facilitates increase in production and productivity in the economy and thus,
enhances the economic welfare of the society. Thus, it facilitates the movement of
stream of command over capital to the point of highest yield .
e) A healthy capital market instrument consisting of expert intermediaries promotes
stability in values of securities representing capital funds.

SCOPE OF THE STUDY

The present study involves an analysis of various Capital Market Instruments that are
available in the market, analysis of Dematerialization and limited lists of securities that
are available for trading in corporate

METHODOLOGY
The data collection methods include both the Primary and Secondary Collection
methods.
1. Primary Collection Methods:
This method includes the data collected from the personal discussions with the
authorized clerks and members of the Exchange.
2. Secondary Collection Methods:
The Secondary Collection Methods includes the lectures of the superintend of
the Department of Market Operations, EDP etc, and also the data collected from the
News, Magazines of the NSE, HSE and different books issues of this study.

OBJECTIVES OF THE STUDY

To study about the Capital Market Instruments.

To study about Dematerialization or Demat in the stock exchange for easy transfer
and error prone system.

Knowing about the latest and future developments is the stock exchange system.

Recent development in derivatives market.

NEED OF THE STUDY:

The Capital market is a market for financial assets which have a long or
indefinite maturity. Generally, it deals with long term securities which have a maturity period
of above one year. Capital market may be further divided into three

types Industrial

securities market, Government securities market and Long term loans market. Industrial
securities market is further divided into two types primary market or new issue market and
secondary market or stock exchange. Government securities market is also called as GiltEdged securities market. It is the market where Government securities are traded. Long term
loans market is divided into three types Term loans market, Mortgages market and Financial
guarantees market.

LIMITATIONS OF THE PROJECT

- Time constraint was a major limiting factor. Forty five days were
insufficient to even grasp the theoretical concepts.
- Several other strategies that could have been studied were not done.
- Lack of knowledge with the brokers.
- Difference of theory from practice.
- Absence of required knowledge and technology.