Ayussh Sanghi is teaching live on Unacademy Plus
CAPITAL MARKETS By Ayussh Sanghi Part 1
Definition Capital market comprises buyers and sellers who trade in equity and debt instruments Equity instruments: Any financial instrument that "represents ownership of an asset" is an equity-based financial instrument. Eg: Share certificate Debt instruments: Any financial instrument that "represents a loan made by an investor to the owner of the asset" is a debt instrument. Eg: Bonds
Medium and long-term funds can be raised through capital markets. Financial instruments with more than 1 year maturity are traded in Capital markets Securities and Exchange Board of India (SEBI) regulates the capital market. It was established on 12 April, 1992 as per the provisions of Securities and Exchange Board of India Act, 1992."
Broad classification of Indian Capital Market System The Indian capital market system can be broadly classified into: I. Securities Market a. G- secs Market b. Industrial Securities Market II. Development Financial Institutions (DFIs) III. Financial Intermediaries (FIs)