A

SYNOPSIS REPORT

ON

CAPITAL MARKET

AT

HDFC BANK LIMITED

Submitted

By

GADDAM MOUNIKA
H.T.NO: 130320672146

PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

AURORA’S PG COLLEGE
PEERZADIGUDA, UPPAL
(Affiliated to Osmania University)
2020-2022
 Aurora’s PG College ,Peerzadiguda, Uppal
Department of Management

SYNOPSIS

Title of the Project : CAPITAL MARKET

Student Name : GADDAM MOUNIKA

Hall Ticket Number : 130320672146

Signature of the Student :

Signature of the Guide :

 TABLE OF CONTENTS

S. No. CHAPTER Page No

1 INTRODUCTION 1

2 NEED FOR THE STUDY 2

3 OBJECTIVES OF THE STUDY 3

4 RESEARCH METHODOLOGY 4

5 LIMITATIONS OF THE STUDY 5

INTRODUCTION
 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 protected against fraud, among other duties.

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 investors or traders, usually on a

securities exchange, over-the-counter, or elsewhere.

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.

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. 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 protected against fraud, among other duties.

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 investors or traders, usually on a

securities exchange, over-the-counter, or elsewhere.

A market is any one of a variety of different systems, institutions, procedures, social 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 evaluated and priced. A market emerges more or less

spontaneously or is constructed deliberately by human interaction in order to enable the exchange of

rights (cf. ownership) of services and goods.

Historically, markets originated in physical marketplaces which would often develop into — or from

— small communities, towns and cities.

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. The nature of

business transactions could define markets.

NEEDS & IMPORTANCE OF STUDY

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 savers. It converts

financial assets in to productive physical assets. It provides incentives to savers in the form of interest

or dividend to the investors.

SCOPE OF THE STUDY

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, dividends, bonus and right issues rates of

return and regulations.

OBJECTIVES OF THE STUDY

 To study about the Capital Market Instruments.

 To study about Dematerialization or Demit in the stock exchange

for easy transfer and error prone system.

 To study about the latest and future developments is the stock exchange system.

 To study about recent development in derivatives market.

RESEARCH & METHODOLOGY

The data collection methods include both the Primary and Secondary Collection methods.

Primary Collection Methods:

This method includes the data collected from the personal discussions with

the authorized clerks and members of the Exchange.

Secondary method: The secondary data collection method includes:

 Websites

 Journals

 Text books

Method Used For Analysis of Study

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. It is also subjective

to interviewer bias or distortion.

Sample Size: 100 respondents

Sampling Unit: Businessmen, Government Servant, Retired Individuals

Tools and techniques:

The SPV, also known as a SPRV or a SPE, is not owned by the issuing insurance company; it

is an off-balance sheet entity specifically created to act as a no admitted reinsurer providing

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.

Vermont and South Carolina allow SPFCs.

The SPV requires a financial vehicle into which it deposits the investor funds, so a trust is

established for that purpose.

LIMITATIONS OF THE STUDY

 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.

 Improper communication channel with speculators.

 A small difference makes feel difficult about theory and practices.

 An improper absence of information about technology.