MONEY MARKET INSTRUMENTS

CALL MONEY MARKET

Call money market is important segment of money market. Borrowing and lending in call money market are for short duration ranging from overnight to a fortnight. Call loans are repayable on demand at the option of the borrower or lender or at very short notice. Call loans are therefore very liquid, next to cash. Call / notice money is the money borrowed or rent on demand for a very short period. When money is borrowed or rent for a day, it is known as call (overnight) Money.

Participants in Call Money

Commercial banks, both Indian and foreign

Co-operative banks

DFCHI

STCI

Primary dealers

Money Market and Capital Market

follow the below link to read about Finance market in India :-

financial-market-in-india

 

Money Market and Capital Market

Money Market is a market for short term financial assets which are near substitutes for money. Money markets instruments are liquid and can be turned over quickly at low transaction cost and without loss. Money market instruments are for short duration, generally defined as less than a year.

Capital Market generally deals in financial assets other than near substitute’s i.e long term primary and secondary issues, claims or securities of maturity period of more than one year.

MONEY MARKET

1. Money Market is basically over the phone market. The transactions are conducted through oral communications.
2. Dealing in money market may be conducted with or without the help of brokers.
3. It is market for short term financial assets that are close substitutes for money.
4. Short term for this purpose is generally taken as a period up to one year.
5. Money market consists of many sub-markets, such as inter-bank call money, bill rediscounting, treasury bills etc. collectively, they constitute the money market
6. Financial assets which can be converted into money with ease speed, without loss and with minimum transactions cost are regarded as close substitutes for money or near-money. 

Financial Market in India

Hey, here I am starting some important short points on secondary market, primary market, and money market

With this I just trying to approaching the concept of share market, to know the layman people to get knowledge of share market, this is just little try by me to aware layman people, here I post some pictogram and examples which helps allot to understand the way of stock market, and updating is always be first preference as I am trying ….

Suggestion will be admirable at your side…

First we know about the financial system of India….

Financial system of India consist of two major market

1. MONEY MARKET

2. CAPITAL MARKET