A Project On

MONEY MARKET INSTRUMENTS

Submitted To
University of Mumbai
In the partial fulfillment of the B.M.S. Degree

By
ANSARI FAISAL
Roll No. 84 Seat No -

Under the Guidance of

Prof. FURQAN SHAIKH

Studying at
Rizvi Education Societys
Rizvi College of Arts, Science & Commerce
Rizvi Educational Complex, Bandra (West), Mumbai

Academic Year 2017-2018

 Declaration

I ANSARI FAISAL a student of the TYBMS class, Roll No. 84 Seat No.
________ of the academic year 2017-18 studying at Rizvi College of Arts,
Science & Commerce , hereby declare that the work done on the project entitled
MONEY MARKET INSTRUMENTS is true and original to the best of my
knowledge and any reference used in the project is duly acknowledged.

Date: _______________

Signature of Student _____________________

(Name of student_ ANSARI FAISAL)
 Certificate

This is to certify that ANSARI FAISAL a student of TYBMS class, Roll No 84

Seat No. _______ of the academic year 2017-18 studying at Rizvi College of
Arts, Science & Commerce; has successfully completed the project entitled
MONEY MARKET INSTRUMENTS.

____________________________ ___________________________
Prof. Furqan shaikh Prof. Furqan Shaikh
(Project Guide) (BMS Co-ordinator)

____________________________ ___________________________
External Examiner Prof. Paul R.P.
(I/c Principal)
 Acknowledgement

Working on this project has tremendously boosted my knowledge

about money market instruments. To alone claim credit for the
completion of this project will not be fair. I express my gratitude to all
those who have helped me shape this project throughout. This project
would not have been possible without the help of some professionals
and friends who have provided me with vital information.

Finally, I would like to thank the Mumbai University who framed the
Business Management and Studies syllabus for giving the opportunity
to work on this project. This project has greatly benefited me.
Although the research that went into this project was intensive, the
results were extremely satisfying
 Executive Summary

The seventh largest and second most populous country in the world, India has long been
considered a country of unrealized potential. A new spirit of economic freedom is now
stirring in the country, bringing sweeping changes in its wake. A series of ambitious
economic reforms aimed at deregulating the country and stimulating foreign investment has
moved India firmly into the front ranks of the rapidly growing Asia Pacific region and
unleashed the latent strengths of a complex and rapidly changing nation.

India's process of economic reform is firmly rooted in a political consensus that spans her
diverse political parties. India's democracy is a known and stable factor, which has taken deep
roots over nearly half a century. Importantly, India has no fundamental conflict between its
political and economic systems. Its political institutions have fostered an open society with
strong collective and individual rights and an environment supportive of free economic
enterprise.

India's time-tested institutions offer foreign investors a transparent environment that

guarantees the security of their long-term investments. These include a free and vibrant press,
a judiciary which can and does overrule the government, a sophisticated legal and accounting
system and a user friendly intellectual infrastructure. India's dynamic and highly competitive
private sector has long been the backbone of its economic activity. It accounts for over 75%
of its Gross Domestic Product and offers considerable scope for joint ventures and
collaborations.

Today, India is one of the most exciting emerging money markets in the world. Skilled
managerial and technical manpower that match the best available in the world and a middle
class whose size exceeds the population of the USA or the European Union, provide India
with a distinct cutting edge in global competition.

The average turnover of the money market in India is over Rs. 40,000 crores daily. This is
more than 3 percents of the total money supply in the Indian economy and 6 percent of the
total funds that commercial banks have let out to the system. This implies that 2 percent of
the annual GDP of India gets traded in the money market in just one day.
 Index
Sr.No Particular Pg.no
1 INTRODUCTION 1

2 MEANING OF MONEY MARKET 3

3 DEFINITION OF MONEY MARKET 4
4 HISTORY 5
5 SIGNIFICANCE OF MONEY MARKET 7
6 FEATURES OF MONEY MARKET 9

7 FUNCTIONS OF MONEY MARKET 12

8 THE ROLE OF RBI IN MONEY MARKET 13
9 PLAYERS OF MONEY MARKET 14
10 STRUCTURE OF MONEY MARKET 18
11 MONEY MARKET INSTRUMENTS 23
12 DRAWBACKS OF INDIAN MONEY MARKET 62
13 FACTORS RESPONSIBLE FOR UNDERDEVELOPED MONEY 65
MARKET
14 QUESTIONNAIRE 66
15 DATA ANALYSIS 69
16 CONCLUSION 76
17 SUGGESTION 78
18 BIBLIOGRAPHY 81