Money Market
Economics · मुद्रा बाजार · 15 facts
Money Market: short-term funds market (up to 1 year), regulated by RBI
Capital Market: long-term funds market (over 1 year), regulated by SEBI
Treasury Bills (T-Bills): issued by RBI for govt, tenures 91/182/364 days
T-Bills are issued at discount and redeemed at par (face value)
Commercial Paper (CP): short-term unsecured promissory note by companies
Certificate of Deposit (CD): time deposit issued by banks at higher interest
Call Money Market: overnight lending between banks (1 day to 14 days)
Repo and Reverse Repo are money market instruments used by RBI
SEBI (Securities and Exchange Board of India) regulates stock markets
SEBI established in 1988, statutory powers given in 1992 via SEBI Act
BSE (Bombay Stock Exchange): oldest stock exchange in Asia, established 1875
NSE (National Stock Exchange): established 1992, index is Nifty 50
BSE index is Sensex (30 companies); NSE index is Nifty (50 companies)
IPO (Initial Public Offering): company sells shares to public for first time
Debenture is a long-term debt instrument issued by companies (NOT shares)