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Indian Financial System

Notes On account of the restrictive controls on cotton, bullion, seeds and other commodities, those
dealing in them found in the stock market as the only outlet for their activities. They were
anxious to join the trade and their number was swelled by numerous others. Many new
associations were constituted for the purpose and Stock Exchanges in all parts of the country
were floated.
The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940) and
Hyderabad Stock Exchange Limited (1944) were incorporated.

In Delhi two stock exchanges – Delhi Stock and Share Brokers' Association Limited and the Delhi
Stocks and Shares Exchange Limited – were floated and later in June 1947, amalgamated into the
Delhi Stock Exchange Association Limited.

4.2 Broad Structure in the Indian Capital Markets

Fund Raisers are companies that raise funds from domestic and foreign sources, both public and
private. The following sources help companies raise funds:

Fund Providers are the entities that invest in the capital markets. These can be categorized as
domestic and foreign investors, institutional and retail investors. The list includes subscribers
to primary market issues, investors who buy in the secondary market, traders, speculators, FIIs/
sub accounts, mutual funds, venture capital funds, NRIs, ADR/GDR investors, etc.
Intermediaries are service providers in the market, including stock brokers, sub-brokers,
financiers, merchant bankers, underwriters, depository participants, registrar and transfer agents,
FIIs/sub accounts, mutual Funds, venture capital funds, portfolio managers, custodians, etc.

Organizations include various entities such as BSE, NSE, other regional stock exchanges, and the
two depositories National Securities Depository Limited (NSDL) and Central Securities
Depository Limited (CSDL).
Market Regulators include the Securities and Exchange Board of India (SEBI), the Reserve Bank
of India (RBI), and the Department of Company Affairs (DCA).

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