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Indian Capital Markets are regulated and monitored by the Ministry of Finance, The Securities and Exchange Board of India and The Reserve Bank of India.
How does RBI policy affect stock market?
By signalling lower rates, the RBI brings down the cost of capital.. cost of debt and cost equity. When we value a stock, we discount future cash flows using the cost of capital. When the interest rates come down, the cost of debt also comes down and that brings the cost of equity down.
Is money market controlled by RBI?
The Reserve Bank derives statutory powers to regulate market segments from specific provisions of the Reserve Bank of India Act, 1934. The prudential guidelines issued to eligible market participants form the broad regulatory framework for Government securities, money market and interest rate derivatives.
Which market is regulated by RBI?
Here are the timings of various RBI-regulated markets with effect from November 9:
| Market | Existing Amended Timings |
|---|---|
| Call/notice/term money | 10 AM to 2 PM |
| Market repo in government securities | 10 AM to 2 PM |
| Tri-party repo in government securities | 10 AM to 2 PM |
| Commercial paper and Certificates of Deposit | 10 AM to 2 PM |
Does RBI regulate chit?
Chit funds in India are not regulated by the Reserve Bank of India (RBI), nor the Securities and Exchange Board of India (SEBI). According to the Chit Funds Act, 1982, the chit funds are registered and regulated only by the respective state governments.
How CRR can affect stock prices?
Generally CRR is maintained by RBI to control the liquidity in the market and to control the inflation. If there is any increase is CRR it slows down the growth of the economy. Impact of cash reserve ratio on Indian economy: If interest rates are high due to increase in CRR, all firms may not get money from the banks.
First, there is a direct effect on stock returns by altering the discount rate used by market participants. Tighter monetary policy leads to an increase in the rate at which firms’ future cash flows are capitalised causing stock prices to decline.
Who is not main player of Indian money market?
Solution(By Examveda Team) Indian Gold Council is not a part of India’s Money Market. The Money market in India is the money market for short-term and long-term funds with maturity ranging from overnight to one year in India including financial instruments that are deemed to be close substitutes of money.
Who is the largest regulator of the Indian money market?
Reserve Bank of India
Reserve Bank of India It is also considered to be the biggest regulator in the markets.
Who is the owner of NSE?
National Stock Exchange
| National Stock Exchange of India’s Logo | |
|---|---|
| Founded | 1992 |
| Owner | Various domestic and global financial institutions, public and privately owned entities and individuals |
| Key people | Girish Chandra Chaturvedi (Chairperson) Vikram Limaye (MD & CEO) |
| Currency | Indian rupee (₹) |