Financial Intermediaries & Financial Market

Who are they?

Channelize surplus money (savings) from Investors (individual households & companies) and producers.

And, the place where this exchange of surplus money takes place is the Financial Market.

2 separate segments

1. Money Market (caters to short-term (upto 364 days) fund requirements)
2. Capital Market (caters to long term fund requirements) 

Money Market in India

Organized

8 instruments are available here to cater to different needs

• Treasury Bills
• CDs
• Commercial Bills
• Commercial Papers
• Mutual Funds
• Repo and reverse repo
• Cash Management Bill

Players

• Government
• Corporates
• Banks
• Individuals etc.

Unorganized

• Local money lenders
• Indigenous Bankers
• Small/ Big Businessmen 

Capital Market in India

Players

1. Banks
2. Financial Institutions
1. AIFIs
1. SIDBI
2. NHB
3. EXIM Bank
4. NABARD
2. SFIs
1. RCTC
2. TFCL
3. Investment Institutions (now not in vogue)
1. GIC
2. LIC
3. UTI
4. SLFIs
1. SFCs
2. SIDCs
3. NBFCs
4. Security Market players
1. Mutual Fund Companies
2. Insurance Companies 
3. Pension and Provident Funds