PART ONE FINANCIAL SYSTEM
The Structure of the Financial System
Function of the Financial System
Financial System and Economic Development
Financial Development Ratios
Fund Flow Analysis
Reforms in Financial Sector in India
PART TWO FINANCIAL INSTITUTIONS
The Reserve Bank of India
Functions of Reserve Bank of India
Monetary Policy and Credit Control
Commercial Banking
Non-Banking Financial Intermediaries
Mutual Funds and Insurance Business in India
The Insurance Regulatory and Development Authority (IRDA)
PART THREE FINANCIAL MARKETS
Role and Structure of the Money Market
The Capital Market
The Indian Debt Markets New Issue Market
New Issue Market
Call Money Market
Bills Market
Foreign Exchange Markets
PART IV GOVERNMENT AND INDUSTRIAL SECURITIES MARKETS
Integration of Money and Capital Markets
Equity and Loan Capital
Role and Functions of Stock Exchanges
The National Stock Exchange of India
Over the Counter Exchange of India
Discount and Finance House of India
Securities and Exchange Board of India
Stock Holding Corporation of India
Credit Rating in India
Market for Derivatives
PART V INTERNATIONAL FINANCE MARKETS
Nature, Organisation and Participants
Offshore Financing Instruments
Role and Functions of the Asian Development Bank


Appendices
Appendix I
Appendix II
Appendix III

Financial System is the mirror reflection of an economy. The performance of any economy to a large extent, is dependent on the performance of the financial institution. In such an environment the agility to adopt to emerging dynamics is the deciding the growth of sound financial system. The rules of the game is on Mergers and Acquisitions. The financial services industry is seeing a consolidation, with all segments of players offering of a plethora of services.
In the post liberalisation era, the finance sector is witnessing a complete metamorphosis. Deregulation measures have included the freeing up of direct controls over ownership, liberalising interest rates and credit allocation, deregulating foreign exchange transaction controls, freeing up the entry of new firms, and expanding and broadening the base of the banking system both for nationals and international business ventures. At the same time, non-banking financial institutions, securities markets and money markets have developed to mobilize and allocate savings. Experience suggests that financial liberalisation needs to be undertaken alongside macro-economic reform.
In this context, "Fundamentals of the Indian Financial System" is a subject that is assuming greater importance and is bound to be one of the key topics of discussion during the next two/three decades. This is, as it should be, to consider what sorts of financial institutions will be best suited to be economic environment in the 21st century.