Hierarchy
Brings buyers and sellers together to trade in financial securities or assets. They are of 2 types:
- Capital Market
- Money Market
Call Market
For buying/selling debt and equity. Securities of medium & long term of 1yr are traded.
Primary capital market
- market here securities are created (eg. via IPO)
- transaction between issuer (company) and investor
Secondary capital market
- securities issued in primary market are traded here among investors
- eg. BSE
Money Market
High liquidity and very short maturities 1yr are traded. Debt instruments like
- call/notice money
- Certificate of Deposits
- CBLO
- Commercial Paper
- Cash Management Bills
- Treasury Bills
- Repos
Who can trade? FI, commercial banks, central banks, highly rated corporates