Indian Financial market

The Indian financial market can be broadly classified into two categories:

 the money market and                the capital market.

The money market is a market for short-term debt instruments, such as treasury bills, commercial paper, and certificates of deposit. These instruments are used to finance short-term cash requirements and manage liquidity by banks, corporations, and other financial institutions.

The capital market, on the other hand, is a market for long-term financial instruments, such as stocks, bonds, and mutual funds. The capital market plays a critical role in channeling savings into investments and providing long-term financing to corporations and government entities.

The Securities and Exchange Board of India (SEBI) is the regulatory authority that oversees the functioning of the capital market in India. It regulates the issuance and trading of securities, and ensures that market participants comply with various regulations and guidelines.

The Reserve Bank of India (RBI) is the central bank of India and plays a key role in the money market. It regulates the banking sector and manages the money supply in the economy through various monetary policy measures.