ABSTRACT
The financial market is a place where buyers and sellers come together and participate in the trade of securities, such as equities, bonds and derivatives. They provide the necessary linkage between the savers and investors, and help them in the exchange of their assets. The financial markets are classified into money market and capital/stock market based on the nature of securities, and primary market and secondary market based on the timing of issue. The financial system in India is regulated by the Government of India at the central level in the field of banking, insurance, capital market, commodities market and pension funds. Securities and Exchange Board of India (SEBI) is the regulatory body which regulates securities markets in India. Its functions extend to the issuance of capital and transfer of securities, in addition to controlling the activities of all intermediaries and persons associated with securities market.
