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limtions of financial_services

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Financial services are the economic services provided by the finance industry, which encompasses a
broad range of organizations that manage money, including credit unions, banks,credit
card companies, insurance companies, consumer finance companies, stock brokerages, investment
funds and some government sponsored enterprises.
Structure of Indian Capital Market with Diagram
Broadly speaking the capital market is classified in to two categories. They are the Primary market (New Issues Market)
and the Secondary market (Old (Existing) Issues Market). This classification is done on the basis of the nature of the
instrument brought in the market. However on the basis of the types of institutions involved in capital market, it can be
classified into various categories such as the Government Securities market or Gilt-edged market, Industrial Securities
market, Development Financial Institutions (DFIs) and Financial intermediaries. All of these components have specific
features to mention. The structure of the Indian capital market has its distinct features. These different segments of the
capital market help to develop the institution of capital market in many dimensions. The primary market helps to raise
fresh capital in the market. In the secondary market, the buying and selling (trading) of capital market instruments takes
place. The following chart will help us in understanding the organizational structure of the Indian Capital market.
1. Government Securities Market : This is also known as the Gilt-edged market. This refers to the market for
government and semi-government securities backed by the Reserve Bank of India (RBI).
2. Industrial Securities Market : This is a market for industrial securities i.e. market for shares and debentures of
the existing and new corporate firms. Buying and selling of such instruments take place in this market. This market
is further classified into two types such as the New Issues Market (Primary) and the Old (Existing) Issues Market
(secondary). In primary market fresh capital is raised by companies by issuing new shares, bonds, units of mutual
funds and debentures. However in the secondary market already existing i.e old shares and debentures are
traded. This trading takes place through the registered stock exchanges. In India we have three prominent stock
exchanges. They are the Bombay Stock Exchange (BSE), the National Stock Exchange (NSE) and Over The
Counter Exchange of India (OTCEI).

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Financial services are the economic services provided by the finance industry, which encompasses a broad range of organizations that manage money, including credit unions, banks,credit card companies, insurance companies, consumer finance companies, stock brokerages, investment funds and some government sponsored enterprises. Structure of Indian Capital Market with Diagram Broadly speaking the capital market is classified in to two categories. They are the Primary market (New Issues Market) and the Secondary market (Old (Existing) Issues Market). This classification is d ...
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