Upload
pavas-singhal
View
218
Download
0
Embed Size (px)
Citation preview
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 1/43
RBI’s Role inRBI’s Role in
Stock, Debt and ForexStock, Debt and ForexMarketMarket
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 2/43
Segmentation of MarketsSegmentation of Markets
• Segmentation of MarketsSegmentation of Markets
– Money Market (all ! "erm Money ! #s$Money Market (all ! "erm Money ! #s$
– redit Marketredit Market– %o&t' Secrities Market%o&t' Secrities Market
– Foreign )xc*ange MarketForeign )xc*ange Market
– )+ity Market)+ity Market– #ri&ate ororate Debt Market#ri&ate ororate Debt Market
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 3/43
Imortance of FinancialImortance of Financial
MarketsMarkets• - .ell fnctioning /nancial market is- .ell fnctioning /nancial market is
key to sstained economic gro.t*key to sstained economic gro.t*
• Financial markets facilitate e0ecti&eFinancial markets facilitate e0ecti&eimlementation of monetary olicyimlementation of monetary olicy
– 1ink in transmission mec*anism1ink in transmission mec*anism
bet.een monetary olicy and realbet.een monetary olicy and realeconomyeconomy
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 4/43
)0orts to de&elo markets)0orts to de&elo markets
• Reform rocessReform rocess
• "ransformation in Strctre, e2ciency "ransformation in Strctre, e2ciency
and stability of marketsand stability of markets• Market determined ricing of /nancialMarket determined ricing of /nancial
assetsassets
• Remo&al of restrictions on articiantsRemo&al of restrictions on articiants• Introdction of electronic tradingIntrodction of electronic tradinglatformslatforms
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 5/43
)0orts to de&elo markets)0orts to de&elo markets
• Introdction of ne. instrmentsIntrodction of ne. instrments
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 6/43
Flo.s into MarketsFlo.s into Markets
• Money 3o.s into sectors .*ereMoney 3o.s into sectors .*ere
retrn is attracti&eretrn is attracti&e
• -t*orities s*old ensre 4-llocati&e-t*orities s*old ensre 4-llocati&e)2ciency’)2ciency’
• S*old not reslt in instability inS*old not reslt in instability in
certain segments .*ic* .ill *a&ecertain segments .*ic* .ill *a&ead&erse imact on t*e Financialad&erse imact on t*e Financial
SystemSystem
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 7/43
Role of RBIRole of RBI
• 5555to secre monetary stability 5to secre monetary stability 5
and to oerate t*e crrency andand to oerate t*e crrency and
credit system of t*e contry to itscredit system of t*e contry to itsad&antage5ad&antage5
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 8/43
%iding rincile%iding rincile
• )nsre Financial Stability)nsre Financial Stability
• #ro&ide 1i+idity#ro&ide 1i+idity
• Balanced De&eloment andBalanced De&eloment and
Integration of MarketsIntegration of Markets
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 9/43
6*at is Integration76*at is Integration7
• #rocess by .*ic* markets become#rocess by .*ic* markets becomeoen and ni/ed so t*at articiantsoen and ni/ed so t*at articiantsin one market *a&e an nimededin one market *a&e an nimeded
access to ot*er marketsaccess to ot*er markets
• Imlies t*at risk ad8sted retrns onImlies t*at risk ad8sted retrns onassets of t*e same tenor in eac*assets of t*e same tenor in eac*
segment of t*e market s*old besegment of t*e market s*old becomarable to one anot*er 9o&erallcomarable to one anot*er 9o&eralle+ality of retrns across markets:e+ality of retrns across markets:
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 10/43
6*y Integration76*y Integration7
• "o "o– )nsre ninterrted /nancial transactions)nsre ninterrted /nancial transactions
– Maintain con/dence in di0erent segmentsMaintain con/dence in di0erent segmentsof t*e system ; amongst all articiantsof t*e system ; amongst all articiantsand stake*oldersand stake*olders
– )nsre absence of excess &olatility)nsre absence of excess &olatility
a0ecting real economic acti&itya0ecting real economic acti&ity– )nsre orderly conditions in t*e /nancial)nsre orderly conditions in t*e /nancialmarkets to gard against otentialmarkets to gard against otentialad&erse e0ects on real economic acti&ityad&erse e0ects on real economic acti&ity
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 11/43
• "o ensre Financial Stability "o ensre Financial Stability– )arlier, stability .as ensred by rigidity)arlier, stability .as ensred by rigidity
– Strctral c*anges may bring in nstableStrctral c*anges may bring in nstableconditionsconditions
– <r reform rocess tried to balance<r reform rocess tried to balancestrctral c*anges, e2ciency and stabilitystrctral c*anges, e2ciency and stability
– Financial Stability is t*eFinancial Stability is t*e sine qua nonsine qua non ofofraid and sstainable economic rogressraid and sstainable economic rogress (M'(M'
=arasim*am ommittee on t*e Financial System, >??>$=arasim*am ommittee on t*e Financial System, >??>$
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 12/43
RBI and Debt MarketRBI and Debt Market
• %o&t' Bond Market%o&t' Bond Market
• #ri&ate Sector Debt Market#ri&ate Sector Debt Market
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 13/43
1egal backing to manage %o&t'1egal backing to manage %o&t'
bondsbonds• RBI -ct ro&isions@
– Sec A> (A$@ <bligation of entral %o&t' toentrst RBI .it* Management of #blic Debtand .it* t*e isse of any =e. loans
– Sec A>;-;(>$ (b$@ Management of #blic Debtand .it* t*e isse of any =e. loans by t*eStates
–Sec > (>>$ (e$@ )mo.ered RBI to act asSec > (>>$ (e$@ )mo.ered RBI to act as
-gent for management of #blic Debt for-gent for management of #blic Debt for
entral %o&t', State %o&t', 1ocal at*ority, IFIentral %o&t', State %o&t', 1ocal at*ority, IFI
or any one or at*ority aro&ed by entralor any one or at*ority aro&ed by entral
%o&t'%o&t'
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 14/43
1egal backing to manage %o&t'1egal backing to manage %o&t'
bondsbonds
• Cnder s'>($ of RBI -ct, RBI isCnder s'>($ of RBI -ct, RBI is
at*orised to rc*ase and sell %'at*orised to rc*ase and sell %'
Sec'Sec'• RBI ndertakes <en MarketRBI ndertakes <en Market
<erations and 1-F in t*ese secrities<erations and 1-F in t*ese secrities
• S'>E of S (R$ -ct, >?E emo.ersS'>E of S (R$ -ct, >?E emo.ersRBI to reglate dealings in %'Sec'RBI to reglate dealings in %'Sec'
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 15/43
Internal Debt ManagementInternal Debt Management
Det'Det'
•#olicy matters connected .it* t*eterms and conditions of t*e =e.
loans,•Date and met*od of isse and
• "*e co;ordination of 3oatation of
&arios State %o&ernment 1oans
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 16/43
RBI’s initiati&eRBI’s initiati&e
• Since -ril >??, RBI took initiati&esSince -ril >??, RBI took initiati&es
to de&elo %o&t' Secrities and ot*erto de&elo %o&t' Secrities and ot*er
markets –markets –– "o .iden, deeen and create more li+id "o .iden, deeen and create more li+id
marketsmarkets
– "o integrate di0erent segments of "o integrate di0erent segments ofdomestic /nancial marketsdomestic /nancial markets
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 17/43
%o&t' Debt Market%o&t' Debt Market
• #rimary Dealers set in >??E to#rimary Dealers set in >??E tode&elo t*e gilt marketde&elo t*e gilt market
• Reos .it* Reser&e Bank (in >??A$Reos .it* Reser&e Bank (in >??A$and market reosand market reos
• Infrastrctre for de&eloment of t*eInfrastrctre for de&eloment of t*e
market frt*er imro&ed .it* settingmarket frt*er imro&ed .it* setting of learing ororation of India of learing ororation of India1td in -ril AGGA, =DS in Febrary1td in -ril AGGA, =DS in FebraryAGGA and imlementation of R"%SAGGA and imlementation of R"%S
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 18/43
De&eloment of %o&t' SecritiesDe&eloment of %o&t' Secrities
MarketMarket
• Stoage of atomatic monetisation and introdctionStoage of atomatic monetisation and introdction
of re;annonced market borro.ing rogrammeof re;annonced market borro.ing rogramme
• )stablis*ment of 6M- frame.ork)stablis*ment of 6M- frame.ork
• Introdction of actions for ";Bills and dated secritiesIntrodction of actions for ";Bills and dated secrities
• )ncoraging establis*ment of #rimary Dealers (#Ds$)ncoraging establis*ment of #rimary Dealers (#Ds$
• Cnder.riting by #Ds ; li+idityCnder.riting by #Ds ; li+idity
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 19/43
De&eloment of %o&t' SecritiesDe&eloment of %o&t' Secrities
MarketMarket
• Deli&eryDeli&ery vsvs #ayment (D#ayment (Dv v #$ System in#$ System in
scriless settlementscriless settlement
• "ransarency and data dissemination "ransarency and data dissemination
• Introdction of ";Bills of &aryingIntrodction of ";Bills of &aryingmatritiesmatrities
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 20/43
De&eloment of %o&t' SecritiesDe&eloment of %o&t' Secrities
MarketMarket
• onsolidation and li+idityonsolidation and li+idity
• )longation of matrity; to HG years)longation of matrity; to HG years• alendar for ";Bills actionsalendar for ";Bills actions
• Cniform riceCniform rice vsvs mltile ricemltile rice
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 21/43
RBI andRBI and Debt!%o&t' Secrities MarketDebt!%o&t' Secrities Market
• Inno&ation in instrmentsInno&ation in instrments
• #ermitting in&estments by FIIs in#ermitting in&estments by FIIs in
debt instrments and allo.ing t*emdebt instrments and allo.ing t*em
to *edgeto *edge
• Dedicated %ilts Mtal FndsDedicated %ilts Mtal Fnds
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 22/43
RBI andRBI and Debt!%o&t' Secrities MarketDebt!%o&t' Secrities Market
• )lectronic dealing system)lectronic dealing system
• omterisation of #D<omterisation of #D<
• R"%SR"%S
• learing cororationlearing cororation
• =orms for &alation of in&estments=orms for &alation of in&estments
• Information disseminationInformation dissemination
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 23/43
• Cnder FRBM -ct, AGGH RBI isCnder FRBM -ct, AGGH RBI is
ro*ibited from sbscribing toro*ibited from sbscribing to
rimary isses of entral %o&t'rimary isses of entral %o&t'secrities from -ril >, AGGEsecrities from -ril >, AGGE
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 24/43
Sterilisation of aital Flo.sSterilisation of aital Flo.s
• Market Stabilisation Sc*emeMarket Stabilisation Sc*eme
lanc*ed to absorb srls li+iditylanc*ed to absorb srls li+idity
so t*at monetary olicy and /scalso t*at monetary olicy and /scalolicy are not ad&ersely a0ected, atolicy are not ad&ersely a0ected, at
t*e same time, bild of Forext*e same time, bild of Forex
Reser&e continesReser&e contines
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 25/43
RBI andRBI and Forex MarketForex Market
• Forex Market is t*e largest /nancialForex Market is t*e largest /nancial
market in t*e .orldmarket in t*e .orld
• Floating exc*ange rateFloating exc*ange rate• "ill >?, -Ds in India ndertook only "ill >?, -Ds in India ndertook only
merc*ant transactionsmerc*ant transactions
• Intra Day trading increased &olmesIntra Day trading increased &olmesin t*e marketin t*e market
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 26/43
• )xc*ange Rate .as artially 3oated)xc*ange Rate .as artially 3oated
in Marc* >??A and flly in Marc*in Marc* >??A and flly in Marc*
>??H>??H• Since t*en exc*ange rate is marketSince t*en exc*ange rate is market
determineddetermined
• rrent -ccont con&ertibilityrrent -ccont con&ertibilitybrog*t abot in -gst >??brog*t abot in -gst >??
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 27/43
• -s Forex Market is global, it is-s Forex Market is global, it is
necessary to re&ent ad&ersenecessary to re&ent ad&erse
de&eloments abroad a0ecting orde&eloments abroad a0ecting ormarketmarket
• 6it*in t*e contry also, Forex Market6it*in t*e contry also, Forex Market
deends on t*e )xc*ange Rate #olicydeends on t*e )xc*ange Rate #olicy• In most of t*e )M)s, exc*ange rate isIn most of t*e )M)s, exc*ange rate is
3oating, .it*ot any /xed targets3oating, .it*ot any /xed targets
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 28/43
• entral Banks inter&ene in t*e market toentral Banks inter&ene in t*e market to/g*t extreme trblence to ensre/g*t extreme trblence to ensreorderly conditionsorderly conditions
• Most of t*e )M)s *a&e also accmlatedMost of t*e )M)s *a&e also accmlatedlarge Forex Reser&es .*ic* *a&e to belarge Forex Reser&es .*ic* *a&e to bemanagedmanaged
• Monetary -t*orities in t*ese contriesMonetary -t*orities in t*ese contries
*a&e to ass t*rog* t*e 4imossible*a&e to ass t*rog* t*e 4imossibletrinity of /xed exc*ange rate, oentrinity of /xed exc*ange rate, oencaital accont and indeendentcaital accont and indeendentmonetary olicy’monetary olicy’
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 29/43
• "ill >?, t*ere .as ractically no "ill >?, t*ere .as ractically no
Forex Market in IndiaForex Market in India
• Banks .ere ndertaking only co&erBanks .ere ndertaking only co&eroerationsoerations
• 6*en banks .ere allo.ed to6*en banks .ere allo.ed to
ndertake intra day trades, t*ey .erendertake intra day trades, t*ey .erere+ired to maintain 4s+are’ or 4nearre+ired to maintain 4s+are’ or 4near
s+are’ osition at t*e end of t*e days+are’ osition at t*e end of t*e day
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 30/43
• Reforms brog*t abot in early ’?Gs,Reforms brog*t abot in early ’?Gs,
enabled -Ds to exand Forex "radingenabled -Ds to exand Forex "rading
• RBI concentrated on instittionalRBI concentrated on instittionalde&eloment and mo&ed a.ay from microde&eloment and mo&ed a.ay from micro
management of Forex Marketmanagement of Forex Market
• Banks .ere allo.ed freedom to cancel andBanks .ere allo.ed freedom to cancel and
rebook For.ard ontracts, ororates *adrebook For.ard ontracts, ororates *adt*e freedom to *edge commodity rice riskt*e freedom to *edge commodity rice risk
in international commodity exc*anges, etc'in international commodity exc*anges, etc'
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 31/43
• Frt*er liberalisation on aitalFrt*er liberalisation on aital
-ccont *ad imacted det*,-ccont *ad imacted det*,
li+idity and e2ciency of t*e Marketli+idity and e2ciency of t*e Market• "*e market, .*ic* .as mostly sot, "*e market, .*ic* .as mostly sot,
no. incldes for.ard and deri&ati&esno. incldes for.ard and deri&ati&es
• "*e Market, dominated by -Ds, is "*e Market, dominated by -Ds, isalso in3enced by Forex Brokers andalso in3enced by Forex Brokers and
ororatesororates
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 32/43
• RBI inter&enes only to ensre orderlyRBI inter&enes only to ensre orderly
conditionsconditions
• F)D-I lays an imortant role as a SR<F)D-I lays an imortant role as a SR<• ategory I -Ds (E$ dominate t*e marketategory I -Ds (E$ dominate t*e market
• For better rice disco&ery and to ro&ideFor better rice disco&ery and to ro&ide
det*, -Ds tilise t*e ser&ices of Forexdet*, -Ds tilise t*e ser&ices of Forex
BrokersBrokers
• "rades are exected in &arios latforms "rades are exected in &arios latforms
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 33/43
• RBI *ad also taken &arios stesRBI *ad also taken &arios stes
mitigate settlement risk in t*e tradesmitigate settlement risk in t*e trades
• I1 commenced settlement of interI1 commenced settlement of interbank CSD;I=R sot and for.ard dealsbank CSD;I=R sot and for.ard deals
from =o&' AGGAfrom =o&' AGGA
• "*rog* a no&ation, I1 becomes t*e "*rog* a no&ation, I1 becomes t*econterarty for trades and it settlesconterarty for trades and it settles
trades on mltilateral net basistrades on mltilateral net basis
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 34/43
• Ree leg of t*e transactions areRee leg of t*e transactions are
settled in t*e crrent acconts .it*settled in t*e crrent acconts .it*
RBI, .*ile t*e Forex leg settled t*rog*RBI, .*ile t*e Forex leg settled t*rog*I1’s Forex -!c .it* settlement bankI1’s Forex -!c .it* settlement bank
in =e. Jorkin =e. Jork
• Dring AGG;GE, I1 settled ? lak*Dring AGG;GE, I1 settled ? lak*
deals .ort* CSK >,>G billiondeals .ort* CSK >,>G billion
• Lo.e&er, .orld o&er on any day,Lo.e&er, .orld o&er on any day,
CSK>,G billion .ort* of tradesCSK>,G billion .ort* of trades
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 35/43
• Foreign )xc*ange "rno&er of IndianForeign )xc*ange "rno&er of Indian
Market rose from CSK billion in >??;Market rose from CSK billion in >??;
? to a&erage CSK AH billion by Feb'? to a&erage CSK AH billion by Feb'AGGAGG
• RBI inter&enes in Forex Market toRBI inter&enes in Forex Market to
re&ent s*ar dereciation ! areciationre&ent s*ar dereciation ! areciation
of ree and to crb excess &olatilityof ree and to crb excess &olatility
• Inter&ention is not gided by any re;Inter&ention is not gided by any re;
determined target or banddetermined target or band
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 36/43
• Moing of Forex reslted in increaseMoing of Forex reslted in increase
in Foreign rrency -ssets backingin Foreign rrency -ssets backing
t*e reet*e ree• RBI *as been moing excessRBI *as been moing excess
li+idity by Market Stabilisationli+idity by Market Stabilisation
Sc*eme introdced from -ril AGGSc*eme introdced from -ril AGG
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 37/43
RBI and )+ity and ororateRBI and )+ity and ororate
Debt MarketDebt Market
• "raditionally ororates relied on "raditionally ororates relied on
banks and DFIs to /nance t*eirbanks and DFIs to /nance t*eir
ro8ectsro8ects• ororates debts .ere mostlyororates debts .ere mostly
ri&ately lacedri&ately laced
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 38/43
RBI and Stock MarketRBI and Stock Market
• RBI reglated entities are allo.ed toRBI reglated entities are allo.ed to
articiate in e+ity marketarticiate in e+ity market
• De&eloments in aital Market *a&eDe&eloments in aital Market *a&eimlications on money sly andimlications on money sly and
*a&e imact on Forex and ot*er*a&e imact on Forex and ot*er
segments of /nancial marketsegments of /nancial market• Forex Market – S*are Market – MoneyForex Market – S*are Market – Money
Market linkagesMarket linkages
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 39/43
RBI and Stock MarketRBI and Stock Market
• Lig* 1e&el o;ordination ommitteeLig* 1e&el o;ordination ommittee
on Financial and aital Marketon Financial and aital Market
(L1FM$(L1FM$• Reglators are also re+ired toReglators are also re+ired to
ensre t*at a market oriented systemensre t*at a market oriented system
is de&eloed in co;ordination .it*is de&eloed in co;ordination .it*%o&ernment in resect of blic%o&ernment in resect of blic
o.ners*i of entitieso.ners*i of entities
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 40/43
De&eloments in StockDe&eloments in Stock
MarketMarket• Stock Market /rmed Stock Market /rmed
• BS) Sensex constantly roseBS) Sensex constantly rose
• #blic Isses@ Rs'HA,HA crore raised#blic Isses@ Rs'HA,HA crore raisedin AGGE;G, as against Rs'AE,?G crorein AGGE;G, as against Rs'AE,?G crorein AGG;GE – mostly e+ity issesin AGG;GE – mostly e+ity isses
• #ri&ate #lacements@ Rs'>,GH,>E? crore#ri&ate #lacements@ Rs'>,GH,>E? croredring -ril;Dec' AGGE, .*ic* is Gdring -ril;Dec' AGGE, .*ic* is Gmore t*an t*e amont raised in t*emore t*an t*e amont raised in t*ere&ios eriodre&ios eriod
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 41/43
Banks and Stock MarketBanks and Stock Market
• )xosre of Banks@)xosre of Banks@
– FndedFnded
– =on Fnded=on Fnded
• Bank loans to indi&idals and S*areBank loans to indi&idals and S*are
BrokersBrokers
• Bank’s in&estment in s*are marketBank’s in&estment in s*are market• #ro&iding Financial Ser&ices in Stock#ro&iding Financial Ser&ices in Stock
MarketMarket
8/20/2019 Role of RBI in Stock, Debt and Forex Market
http://slidepdf.com/reader/full/role-of-rbi-in-stock-debt-and-forex-market 42/43
"o sm '' "o sm ''
• FMD set in Nly AGG to integrateFMD set in Nly AGG to integrate
RBI’s market oerations and imro&eRBI’s market oerations and imro&e
e2ciency in money, %' Sec ande2ciency in money, %' Sec andForeign )xc*ange MarketsForeign )xc*ange Markets
• "ec*nical -d&isory ommittee on "ec*nical -d&isory ommittee on
Money, Foreign )xc*ange and %o&t'Money, Foreign )xc*ange and %o&t'Secrities Market ad&ises RBI onSecrities Market ad&ises RBI on
frt*er measresfrt*er measres