Shailja Vashisht, Assistant

professor, PCTE group of Institutes

PLACES TO SAVE MONEY

Would you save your money in any of these places? Why?
Why not? Can you think of other places to save money?

Bed & Mattress

Cookie Jar
Pillow
Wallet
Money Belt
Small House Safe

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

The Flow of Savings to

Corporations
(2)

(1)
Investors

Firm's

Financial

operations

Real
assets

Manager

(4a)

(4b)

(3)
(1) Investors buy stock wit cash
(2)Cash is invested
(3) Business generates cash
(4a) Cash reinvested
(4b) Cash returned to investors

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

(stockholders
save and
invest in firm.)

Financial System
A financial systems plays a vital role in the economic
growth of a country.
It intermediates with the flow of funds between those who
save a part of their income to those who invest in productive
assets.
It mobilizes & usefully allocates scare resources of a country.

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Functions
Facilitates capital formation
a market for creation and exchange of financial assets
Performs the following Functions:

Payment
System

Pooling of
Funds

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Transfer Of
Resources

Risk
Managemen
t

Price
Information

Indian Financial System

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Components of financial
system
Regulatory Bodies
Services
Markets
Instruments
Institutions

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Financial Markets
Money

Primary

OTC

Markets

Markets
Secondary
Markets

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Financial Markets
Issue Debt

Company

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Cash

Investors

Financial Markets
Company

Banks
Insurance Cos.
Brokerage Firms

Obligation
s

Funds

Intermediary

Obligation

Funds

Depositors
Policyholders
Investors

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Investor

Regulatory
Framework
Shailja Vashisht, Assistant
professor, PCTE group of Institutes

Ministry Of Finance
RBI

SEBI

Commercial
Banks
PDs, DFIs,
SIDCs
NBFCs
Money Market

Capital
Markets

IRDA
Mutual
Funds

Primary
Markets
Secondary
Markets

Ministry Of Consumer Affairs &

Agriculture
FMC
Commodity
Exchanges
Shailja Vashisht, Assistant
professor, PCTE group of Institutes

Insurance
Companies

 Financial services are the economic services

provided by the finance industry, which
encompasses a broad range of organizations that
manage money

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Indian Financial Sector

Investor Breakup
The size of banking
assets in India reached
US$ 1.8 trillion in FY14
Indias life insurance
sector is the biggest in
the world with about 36
crore policies
assets of mutual fund
industry in FY14 were
about US$ 189.83 billion
Shailja Vashisht, Assistant
professor, PCTE group of Institutes

Features of Financial
Services
Consumer oriented
Simultaneous
Intangibility
Dominance
Perishability
of performance
human element

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Role Of Financial
Services
Economic growth

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Classification of financial
services
Financial
Traditional
Modern
Fund
Fee
Services
based
based

Shailja Vashisht, Assistant

professor, PCTE group of Institutes

Major IndianPlayers
1.
2.
3.
4.
5.
6.
7.
8.

SBI Capital Markets Limited

Bajaj Capital Limited
DSP Merrill Lynch Limited
PNB Housing Finance Limited
ICICI Group
LIC Finance Limited
L & T Finance Limited
Karvy Group

Shailja Vashisht, Assistant

professor, PCTE group of Institutes