Free Download Financial Institutions and Markets Structure Growth and Innovations 6Th Edition Jitendra Mahakud Full Chapter PDF
Free Download Financial Institutions and Markets Structure Growth and Innovations 6Th Edition Jitendra Mahakud Full Chapter PDF
Economic Thought (2000), Collected Papers on Money, Interest, and Monetary Policy (2007),
Collected Papers on Credit and Finance (2007), Collected Papers on Gandhian Thought (2007),
Unemployment, Inequality, Entrepreneurship, and other Collected Papers (2007), Gandhi’s Hind
Gandhi and Vinoba Bhabe (2016). His current areas of teaching and research include Gandhian
his Masters and M Phil in economics from the Central University, Hyderabad, he obtained his PhD
Financial Institutions
and Markets
Structure, Growth and Innovations
Sixth Edition
L. M. Bhole
Professor of Economics (Retired)
Department of Humanities and Social Sciences
Indian Institute of Technology Bombay
Jitendra Mahakud
Associate Professor of Economics and Finance
Department of Humanities and Social Sciences
Indian Institute of Technology Kharagpur
E-Book
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Typeset at The Composers, 260, C.A. Apt., Paschim Vihar, New Delhi 110 063 and printed at
Preface to the
Sixth Edition
Financial Institutions
and Markets: Structure, Growth and Innovations
undergraduate and post graduate students in mind, with the updated information, this edition
for better understanding of theoretical concepts. While carrying out the revision, the approach has
been not only to incorporate all the latest information and emerging trends, but also to retain the
relevant information of the past.
Additions/Revisions
● Discussion on economic analysis, industry analysis and company analysis has been further
elaborated.
●
and demonetisation and its impact on Indian economy have been introduced in the overview
●
vi Preface to the Sixth Edition
the theories of regulation, regulatory approaches, multiple verses single regulator and also
on Liquidity Adjustment Facility (LAF) has been revised. A summary of report by the expert
chapter.
●
● The discussion on types of instruments in small savings media has been elaborated. The section
on provident funds has been updated and discussion on the architecture of the New Pension
System (NPS) has been introduced. The features of NPS have also been expanded. Features
of NPS Swavalamban and Atal Pension Yojana have been included. Data on NPS and various
pension schemes has been updated.
● Discussion on principles of insurance has been introduced in the chapter on Insurance. The data
and policy developments related to the insurance sector in India have been revised.
● The chapter on mutual fund has been updated with the inclusion of elaborate discussion
have been highlighted. The discussion on credit rating agencies in India has been expanded.
●
●
Preface to the Sixth Edition vii
● Chapter on Treasury Bills has been reviewed introducing the discussion on cash management
bill, types of auctions held in issuing treasury bills and calculation of the yield of the treasury
bills.
●
● Considering the current trend and interest of the students, chapters on Government Securities
bond investments, valuation of bond, yield measures and yield curves. Further, this chapter
section on pricing of the derivative instruments has been revised with the inclusion of many
mathematical derivations and numerical examples.
●
(FDI) and Foreign Institutional Investment (FII) has been expanded. A new section on FDI in
retail sector in India has been introduced.
● Section on the theories of term structure interest rates has been expanded and the chapter on
interest rates in India has been restructured, and updated in the light of recent data and policy
measures.
Learning Aids
●
Acknowledgements
Similarly, Mrs Seba Mohanty and Mr Gaurav Gupta helped us to collect data and prepare tables for
Gupta, Mrs Lopamudra Satpathy and Mr Sunil Sangwan for helping us in collecting information to
L. M. Bhole
Jitendra Mahakud
Preface to the
First Edition
understood much better, and they can be analysed more realistically if he has a good understand
primarily in India, but wherever appropriate the reference has also been made to the situation
in certain other economies such as the USA and the UK.
since the beginning of economic planning. It was but natural that this development should
subject in the sense that they have tended to concentrate their attention on the discussion of
While doing so, it combines the factual and analytical aspects of the discussions in a balanced
manner.
x Preface to the First Edition
of and the empirical evidence on the level and structure of interest rates have been discussed.
ics. It may also serve as a reference or supplementary text in graduate and postgraduate courses
in the areas just mentioned. Further, it can be expected to be useful to corporate researchers or
innovations and monetary policy to be included in the research project report to be submitted
the Curriculum Development Programme in the Indian Institute of Technology, Mumbai, for
L. M. Bhole
Contents
PART 1
OVERVIEW
Stability 3.30
3.17 Undesirable Elements of Financial Development 3.32
3.18 Quality of Financial Development 3.32
Summary 3.34
Key Terms 3.36
Questions 3.36
1991 4.4
4.5
4.5
4.7
4.10
4.12
4.14
4.15
4.18
4.21
4.26
4.27
Summary 4.31
Key Terms 4.32
Questions 4.32
Contents xv
PART 2
FINANCIAL REGULATIONS AND REGULATORY INSTITUTIONS IN INDIA
5.19
5.5.8 Prevention of Money Laundering Act, 2002 5.20
5.5.9 The Micro, Small and Medium Enterprises Act, 2006 5.22
5.5.10 Payment and Settlement Systems (PSS) Act, 2007 5.23
2009 5.24
5.5.12 The Companies Act, 2013 5.28
2013 5.31
1999 5.32
5.33
5.34
5.34
xvi Contents
Summary 5.35
Key Terms 5.35
Questions 5.35
6.26
6.10 Monetary Policy in Other Countries 6.30
6.34
6.11.1 Advantages 6.34
6.11.2 Limitations 6.35
Performance 6.35
6.36
Summary 6.37
Key Terms 6.38
Questions 6.38
PART 3
BANKING INSTITUTIONS
8.29
8.29
8.30
8.31
8.33
8.34
8.35
8.38
8.38
8.42
8.43
8.15.1 Investments 8.44
8.45
8.48
8.51
8.53
8.56
8.57
8.58
8.20.1 Basel I 8.58
8.20.2 Basel II 8.59
8.20.3 Basel III 8.60
8.61
8.61
8.64
8.69
8.70
Summary 8.72
Key Terms 8.74
Questions 8.75
9.4
9.6
9.13
9.19
Summary 9.20
Key Terms 9.21
Questions 9.21
PART 4
NON-BANK FINANCIAL INTERMEDIARIES AND
STATUTORY FINANCIAL ORGANISATIONS
Summary 12.24
Key Terms 12.25
Questions 12.26
13.7
13.8
13.8
13.3.9 Mortgage Guarantee Companies (MGC) 13.9
(NOFHC) 13.9
13.9
13.10
13.10
13.6 Other NBFSCs in India 13.12
13.6.1 Housing Finance Companies 13.12
13.17
13.6.3 Venture Capital Funds (VCF) 13.18
13.20
13.21
13.22
13.22
13.25
13.25
13.28
13.9 Depository and Custodial Services 13.29
Contents xxiii
Summary 13.30
Key Terms 13.31
Questions 13.31
14.3
14.3
14.4
Industrial Financial Corporation of India (IFCI) 14.7
National Industrial Development Corporation (NIDC) 14.9
14.9
Infrastructure Leasing and Financial Services Ltd. (IL&FS) 14.10
14.10
14.11
14.11
14.11
14.13
(SIIICs) 14.13
14.13
14.13
14.14
14.15
14.16
14.17
14.18
14.18
(NEDFC) 14.18
14.19
Features of Assistance Provided by NBSFOs 14.20
xxiv Contents
PART 5
FINANCIAL MARKETS
15.15
15.15
Contents xxv
15.17
15.17
15.17
Summary 15.19
Key Terms 15.20
Questions 15.20
Value 18.4
18.4
18.6
18.8
18.8
18.9
Contents xxvii
18.41
18.43
18.45
18.47
Summary 18.49
Key Terms 18.50
Questions 18.51
19.15
19.16
19.17
19.20
19.21
19.23
19.24
19.9.1 Listing of Securities 19.24
19.9.2 Security Groupings 19.24
19.9.3 Trading System 19.26
19.27
19.9.5 Short Selling 19.28
19.9.6 Settlement Cycle 19.29
19.30
19.30
19.37
19.40
19.44
19.46
Summary 19.49
Key terms 19.49
Questions 19.50
20.11
20.5 Valuation or Pricing of Derivatives 20.13
20.5.1 Pricing of Forward Contracts (Financial Assets) 20.13
20.5.2 Pricing of Future Contracts (Commodities) 20.15
20.5.3 Binomial Option Pricing Models 20.16
20.19
20.24
20.6.1 Major Policy Developments 20.25
20.31
20.32
20.35
20.40
20.11 Critique of Derivatives 20.42
20.11.1 Speculative Nature 20.42
20.43
20.11.3 Instability of the Financial System 20.43
20.44
20.11.5 Displacement Effect 20.45
20.45
20.11.7 Adverse Empirical Evidences 20.45
20.12 Critique of Introduction of Derivatives in India 20.46
Summary 20.48
Key Terms 20.49
Questions 20.49
PART 6
INTERNATIONAL DIMENSIONS OF FINANCIAL MARKETS