Tuesday, 24 January 2017

Participants in the Financial Market

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       Commercial Banks- A bank that offers services to the general public and companies, accepting deposit from public for the purpose of lending and investments.

      NBFCs(Non-Banking Financial Companies)-These are licensed and supervised by the RBI and allowed accept deposit from public and lent through leasing, Hire purchase and bill discounting etc.

      Primary Dealers(PDs)- Deal in Govt. securities and participate in primary and secondary market

      Financial Institutions(FIs)- An establishment that focuses on dealing with financial transactions, such as investments, loans and deposits.

      Co-operative Banks-They are registered under the Cooperative Societies Act, 1912. They are regulated by the Reserve Bank of India under the Banking Regulation Act, 1949 and Banking Laws (Application to Co-operative Societies) Act, 1965. Urban co-operative banks are controlled by state govt. and RBI and other co-operative banks are controlled by state govt. and NABARD.

      Stock Exchanges- A platform provide sale and purchase of securities on behalf of investors and approved by regulators, provide clearing house facility and guarantee all payments and deliveries.

      Stock Brokers- A stock broker is an intermediary who arranges to buy and sell securities on the behalf of clients. A stockbroker is member of a stock exchange and requires to hold a certificate of registration from SEBI.

       Investment Bankers- A number of activities such as issue of stocks, fund raising and management, advisory services and counsel on mergers and acquisitions, licensed by SEBI.

       FIIs(Foreign Institutional Investors)- An investor or investment fund that is from or registered in a country outside of the one in which it is currently investing.

      Depositories-Depositories hold securities in dematerialized form

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