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Financial Market Structure

The document summarizes key aspects of financial markets and companies in India. It outlines the structure of money markets, capital markets, and their various components like debt markets, commodity markets, and foreign exchange markets. It then describes the major players like banks, financial institutions, and regulators like SEBI, RBI, and IRDA. Finally, it provides an overview of the capital market structure including primary and secondary markets, stock exchanges, and instruments like stocks and derivatives.

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Vishnu Pathak
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966 views17 pages

Financial Market Structure

The document summarizes key aspects of financial markets and companies in India. It outlines the structure of money markets, capital markets, and their various components like debt markets, commodity markets, and foreign exchange markets. It then describes the major players like banks, financial institutions, and regulators like SEBI, RBI, and IRDA. Finally, it provides an overview of the capital market structure including primary and secondary markets, stock exchanges, and instruments like stocks and derivatives.

Uploaded by

Vishnu Pathak
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MARKET

STRUCTURE
FINANCIAL
MARKET

MONEY CAPITAL
MARKET MARKET
Money Market

Primary market Secondary market

Debt Bullion
Market FOREX Market
market

Speculative
Instrument Trading (Future
Hedging Trading Trading
PLAYERs

Banks

Money Authorized
Changers Dealers

Financial
Institutions
Reserve
Bank of India
Financial

? Institutions

REGULATORS
Directorate of
TRAI Enforcement

IRDA Government of
India
Capital market

Primary Secondary
Market Market

Domestic or Stock Exchanges


International
BSE
Private
IPOs Placement NSE
OTC
Corporate RSE
EI
Securities

Speculative
Securities
Hedging
(SWAPS)
NCLT
SEBI
FEMA

Depositories Act
CCI REGULATORS

Registrar of
SCRA Companies

Central
Govt.
Self Regulatory Organisation, Credit
Institution Rating Agencies and Venture Capital

Brokers, merchant Bankers, Underwriters


Intermediaries
FIIs, Wholesale Mutual Fund,
Investors Development Financial Institutions
RETAIL

Equity; Preferential Shares; Options;


Instruments Derivatives

BSE; NSE, etc


Indexes
Public Offering Disclosure and Investor
IPOs Protection Regulation, 2009

Information Published daily in new papers and Intra


trading movement
System
Business Registration Procedures
COMPANY FORMATION
START
Obtaining approval for the proposed name of the Company from the
ROC
Drawing up the Memorandum of Association

Drawing up the Articles of Association

Getting the appropriate persons to subscribe to the Memorandum (a


minimum of 7 for a public company and 2 for a private company

Payment of Registration Fee to the ROC


Obtain a certificate of commencement of business from the
ROC in case of a public company
Nicholas Murray,
President, Columbia University (1911)

I weigh my words when I say that in my


judgment the limited liability corporation
is the greatest single discovery of modern
times ....Even steam and electricity are far
less important than the limited liability
corporation, and they would be reduced to
comparative impotence without it.
Quoted in William P. Hackney & Tracey G. Benson,
Shareholder Liability for Inadequate Capital, 43 U. PI-r. L.
REV. 837, 841 (1982)
COMPANY
Is an association of persons
Either human beings or legal persons, or both
Formed to conduct business or other activities
In the name of the association
Incorporated by registration under the Companies Act.
Also called corporation - Meaning a company or any
other body incorporated under law (& not Municipal
Corporation)
Co. comes into existence by incorporation.
To incorporate means to form into a legal corporation
or to become a corporation,
Incorporation is the act of forming a legal corporation.
It denotes the formation of an association that has a
corporate personality, i.e. a personality distinct from
those of its members.
Black's Law Dictionary, 7th ed., p 341
Corporation is "An entity (usually a business) having
authority under law to act as
single person distinct from the shareholders who own
it and having rights to issue stock
and exist indefinitely; a group or succession of persons
established in accordance with
legal rules into a legal or juristic person that has legal
personality distinct from the natural
persons who make it up, exists indefinitely apart from
them, and has the legal powers that
its constitution gives.
Corpus Juris Secundum, Volume 18,
page 366.
"A corporation is a collection of natural persons joined together by their voluntary
action or by legal compulsion, by or under the authority of an Act of the Legislature,
consisting either of a special character or of a general permissive statute, to
accomplish
some purposes, pecuniary, ideal, or governmental authorized by the charter or
governing
statute, under a scheme or organization and by methods thereby prescribed or
permitted
with the faculty of having a continuous succession during the period prescribed by
the
Legislature for its existence, of having a corporate name by which it may make and
take
contracts, and sue and be sued, and with the faculty of acting as a unit in respect of
all
matters within the scope of the purpose for which it is created.
The Shorter Oxford English Directory,
Vol I, p 429
A company is a body corporate. The expression 'body
corporate' is of wide
connotation. It includes a company incorporated in India as
well as outside India as well
as any other body or association of persons incorporated
under some statute. Body
corporate means an artificial 'person' created by law; a
corporation. "Corporation" means
a body corporate legally authorised to act as a single
individual; an artificial person
created by royal charter, prescription, or legislative act, and
having the capacity of
perpetual succession
Som Prakash Rekhi v Union of India AIR
1981 SC 212
Corporate personality is a reality and not an illusion or
fictitious construction of the
law. It is a legal person. Indeed, 'a legal person' is any
subject-matter other than a human
being to which the law attributes personality.
Corporations are one species of legal
persons invented by the law and invested with a variety
of attributes so as to achieve
certain purposes sanctioned by the law. For those
purposes, a corporation or company has
a legal existence all its own.
Emergence new approach to
Transnational Corporate Governance
Rise of activist litigation against the parent companies of
multinational enterprises (MNEs) for the actions of
overseas subsidiaries; the new framework for human
rights and business developed by the U.N. Special
Representative of the Secretary General; and the
increased role of the state as an owner, controller, and
regulator of enterprise as a result of the financial crisis
and the rise of state-owned and -controlled MNEs from
newly industrialized countries.
Development contributed to a
reconsideration of the enhanced shareholder value model &
development of a more socially rooted appraisal of the
corporation and of corporate law and governance.

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