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Capital Market: A Synopsis Report ON AT Iifl Limited
Capital Market: A Synopsis Report ON AT Iifl Limited
SYNOPSIS REPORT
ON
CAPITAL MARKET
AT
IIFL LIMITED
Submitted
By
L. HARSHITHA
H.T.NO: 1304-20-672-088
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE
OF
PEERZADIGUDA
2020-2022
AURORA POST GRADUATE COLLEGE
PEERZADIGUDA
Department of Management
SYNOPSIS
enterprises (companies) and governments can raise long-term funds. It is defined as a market
in which money is provided for periods longer than a year, as the raising of short-term funds
takes place on other markets (e.g., the money market). The capital market includes the stock
market (equity securities) and the bond market (debt). Financial regulators, such as the UK's
Financial Services Authority (FSA) or the U.S. Securities and Exchange Commission (SEC),
oversee the capital markets in their designated jurisdictions to ensure that investors are
Capital markets may be classified as primary markets and secondary markets. In primary
markets, new stock or bond issues are sold to investors via a mechanism known as
underwriting. In the secondary markets, existing securities are sold and bought among
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 i.e., Industrial
securities market, Government securities market and Long term loans market. Industrial
securities market is further divided into two types i.e., primary market or new issue market
and secondary market or stock exchange. Government securities market is also called as Gilt-
Edged 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.
economic growth. Resources would remain idle if finances are not funneled through the
capital market. The capital market instruments serves as an important source for the
productive use of the economy’s savings. It mobilizes the savings of the peoples for further
investment and thus avoids their wastage in unproductive uses. It provides incentives to
saving and facilitates capital formation by offering suitable rates of interest as the price of
capital. It provides an avenue for investors, particularly the household sector to invest in
financial assets which are more productive than physical assets. It facilitates increase in
production and productivity in the economy and thus, enhances the economic welfare of the
society.
CAPITAL MARKET:
A capital market is a market for securities (debt or equity), where business enterprises
(companies) and governments can raise long-term funds. It is defined as a market in which
money is provided for periods longer than a year, as the raising of short-term funds takes
place on other markets (e.g., the money market). The capital market includes the stock market
(equity securities) and the bond market (debt). Financial regulators, such as the UK's
Financial Services Authority (FSA) or the U.S. Securities and Exchange Commission (SEC),
oversee the capital markets in their designated jurisdictions to ensure that investors are
Capital markets may be classified as primary markets and secondary markets. In primary
markets, new stock or bond issues are sold to investors via a mechanism known as
underwriting. In the secondary markets, existing securities are sold and bought among
relations and infrastructures whereby persons trade, and goods and services are exchanged,
forming part of the economy. It is an arrangement that allows buyers and sellers to exchange
things. Markets vary in size, range, geographic scale, location, types and variety of human
communities, as well as the types of goods and services traded. Some examples include local
farmers’ markets held in town squares or parking lots, shopping centers and shopping malls,
international currency and commodity markets, legally created markets such as for pollution
permits, and illegal markets such as the market for illicit drugs.
In mainstream economics, the concept of a market is any structure that allows buyers and
sellers to exchange any type of goods, services and information. The exchange of goods or
services for money is a transaction. Market participants consist of all the buyers and sellers of
a good who influence its price. This influence is a major study of economics and has given
rise to several theories and models concerning the basic market forces of supply and demand.
There are two roles in markets, buyers and sellers. The market facilitates trade and enables
the distribution and allocation of resources in a society. Markets allow any tradable item to be
deliberately by human interaction in order to enable the exchange of rights (cf. ownership) of
Historically, markets originated in physical marketplaces which would often develop into —
Types of markets
Although many markets exist in the traditional sense — such as a marketplace — there are
various other types of markets and various organizational structures to assist their functions.
Capital market deals with long term funds. These funds are subject to uncertainty and risk. It
supplies long term funds and medium term funds to the corporate sector. It provides the
mechanism for facilitating capital fund transactions. It deals with ordinary shares, debentures
and stocks and securities of the governments. In this market the funds flow will come from
The current study involves a variety of work in economics, accounting and finance in this.
Valuation of stocks and functions of the stock markets, valuation of bonds convertible
debentures and market for debt, issue market and merchant banking, market efficiency,
To study about the latest and future developments is the stock exchange system.
The data collection methods include both the Primary and Secondary Collection
methods.
This method includes the data collected from the personal discussions with
Websites
Journals
Text books
The methodology used for this purpose is Survey and Questionnaire Method. It is a time
consuming and expensive method and requires more administrative planning and supervision.
The SPV, also known as a SPRV or a SPE, is not owned by the issuing insurance company; it
reinsurance to the issuer. All SPVs are located offshore for this reason. However, a number of
onshore captive domiciles have legislation permitting the establishment of what are called
Special Purpose Financial Captives (SPFC). A SPFC can fulfill the role of the offshore SPV.
The SPV requires a financial vehicle into which it deposits the investor funds, so a trust is
Fortyfive days were insufficient to go on with the study. since the time constraint was
not enough.
Most of the implementation and strategies studied were not properly used.