University of Lucknow

CAPITAL MARKET

Submitted Tó:- Submitted By:- Ankita Singh

Dr Ritika Singh MBA (F&A)
4th Sem
Sr.No- 41
CAPITAL MARKET
 CAPITAL MARKET :-
Capital markets are a sub-part of the financial
system. Conceptually, the financial system includes a
complex of institutions and mechanism which affects
includes a complex of institutions and mechanism
which affects the generation of savings and their
transfers to those who will invest. It may be said to be
made of all those channels through which savings
become available for investments

CAPITAL MARKET
 In other words:
“The capital market (securities markets) is
the market for securities, where companies
and the government can raise long-term
funds. The capital market includes the stock
market and the bond market”

CAPITAL MARKET
 FEATURES

Engine of growth

Efficient capital Best regulated market

securities markets Increasing integration regulatory framework

CAPITAL MARKET
THREE ELEMENTS OF CAPITAL MARKET

• FINANCIAL ASSETS/INSTRUMENTS/SECURITIES

• FINANCIAL INTERMEDIARIES

• FINANCIAL MARKETS

CAPITAL MARKET
 TYPES OF MARKET
• PRIMARY MARKET

• SECONDARY MARKET

CAPITAL MARKET
PRIMARY MARKET

⚬ The primary market deals with the issue of new instruments by the
corporate sector such as equity shares, preference shares and
debentures.
⚬ Function of primary market-
ORIGINATION: is the work of investigation and analysis and
processing of new issue proposals.

UNDERWRITING: is a form of guarantee that the new issue would

be sold by eliminating the risk arising from uncertainty of public
response
.
DISTRIBUTION: is the sale of the ultimate investors.

CAPITAL MARKET
SECONDARY MARKETS …

• Stock exchanges discharge three vital functions in the

orderly growth of capital formation:

1.Nexus between savings and investments

2.Market place and

3. Continuous price formation

CAPITAL MARKET
Why To Invest In Indian Capital Markrt

• India’s accounting standards are closer to international

standards.
• SEBI has made corporate governance guidelines
mandatory for listed companies.
• Mutual funds are permitted to invest overseas up to $3
billion.
• Almost 100 per cent risk free electronic settlement through
depository system .

CAPITAL MARKET
 CONCLUSION
• Indian markets amongst the best regulated
markets in the world.
• Need for greater integration with international
markets in terms of capital flows, products and
processes
• Need to introduce new age financial products and
to encourage.
• participation of new age investors.

CAPITAL MARKET
THANK YOU

CAPITAL MARKET