(Held in January 2019)
(Indian Financial System)
Group – B
Full Marks: 80
Time: Three Hours
The figures in the margin indicate full marks for the questions.
1. (a) Explain the structure of Indian Financial System. Also state clearly the position of the money market and its linkages with the financial system.
(b) Explain the carefully the surveillance of the Indian financial system by various regulatory bodies. Comment on such surveillance by Securities and Exchange Board of India (SEBI).
2. (a) How economic development of Indian has been connected with its financial system? Whether the maturity of financial system has been positively linked with economic development?
(b) State the role of financial institutions in the Indian financial system.
3. (a) Write what do you know about the difference between the primary and secondary market in India. What is the state of primary market in India after the year 2005?
(b) What is a money market? Write elaborately on money market players and instruments in India.
4. (a) What is the meaning of capital adequacy norms of the commercial banks in India? What is the justification behind making capital adequacy norms compulsory for commercial banks operating in India?(give appropriate examples to substantiate your answer)
(b) Explain the role played by the Indian mutual funds in mobilising small savings for effective investment in stock market in India.
5. (a) Explain the meaning of ‘Options’ and ‘Futures’ as derivative Financial Instruments entered in nineties in India. State clearly the difference between the two.
(b) What is the mechanism of mobilising foreign investment through the ADRs and GDRs? Explain each of these with appropriate examples.