Page 35 - DCOM304_INDIAN_FINANCIAL_SYSTEM

Indian Financial System Rupesh Roshan Singh, Lovely Professional University

Notes Unit 3: Financial Markets

CONTENTS
Objectives
Introduction

3.1 Money Market in India
3.2 Nature of Money Market
3.3 Functions of Money Market
3.4 Players of Money Market
3.5 Types/Composition of Indian Money Market
3.5.1 Call/Notice Money Market
3.5.2 Term Money Market

3.5.3 Treasury Bill Market
3.5.4 Discount Market
3.5.5 Bill Market
3.6 Participants of Indian Money Market
3.6.1 Participants in Call Money Market
3.6.2 Participants in Treasury Bills Market in India
3.6.3 Participants in Commercial Bill Market in India
3.7 Financial Instruments of Indian Money Market
3.8 Risk Exposure in Money Market Instruments

3.9 Summary
3.10 Keywords
3.11 Review Questions
3.12 Further Readings

Objectives

After studying this unit, you should be able to:
 Learn the concept of financial market;
 Explain the nature and composition of Indian money market;
 Discuss about the major players and functions of Indian money market;

 Discuss the money market instruments;
 Understand the risk involved in money market instruments.

Introduction

A financial market, as noted in the preceding unit, is a market where variety of financial assets
are traded directly or indirectly to cater to the diverse saving notions of the savers and numerous

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