The correct option isCo-promotes state-level venture funds.
Co-promotes state-level venture funds is not a feature of Indian capital Market
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Important PointsFeatures of Indian Capital Market are as follows:
- Serves as link between Savers and Investment Opportunities:As money is transferred from savers to risk-taking borrowers on the capital market, it forms an essential link between the saving and investing processes.
- LongTerm Investment :The ability to put their hard-earned money into long-term investments is beneficial to investors.
- Helps in Capital Formation :The capital market provides chances for those investorswho have extra funds and wish to store them in an investment, so they can benefit from compound interest.
- Helps Intermediaries:It requires the assistance of intermediaries, such as brokers, banks, etc., to transfer shares and money from one investor to another, aiding them in running their businesses.
- Rules and Regulations :The government regulates and controls how the capital markets operate, giving it a secure environment for trading.
Additional InformationCapital Market:A capital market is a location where funding instruments like shares, bonds, debentures, debt instruments, and E T Fs can be traded. It is a way to raise money for private citizens, businesses, and governments.
Types of Capital Market
Primary Market:
- New securities that are launched in the stock market for the first time are primarily dealt with in the primary market.
- As a result, the fresh issue market is another name for it.
- The primary market's principal purpose is to make it easier for corporations to transfer newly issued shares to the general public.
- Financial institutions, banks, H N I, and others are the key investors in this type of market.
Secondary Market:
- Also known as the stock market, this market serves as the actual venue for the trading of securities.
- Here, securities are bought and sold.
- Current investors sell the securities, while new investors acquire the securities.
FAQs
Detailed Solution
Which of the following is not related to the capital market? ›
Hence, it can be concluded that Cooperative banks do not come under the classification of capital markets.
Which of the following is a method of raising capital in the primary market? ›
Corporates may raise capital in the primary market by way of an initial public offer, rights issue or private placement. An Initial Public Offer (IPO) is the selling of securities to the public in the primary market.
Which kind of operation will be undertaken in the primary security market? ›
In the primary market, new stocks and bonds are sold to the public for the first time. In a primary market, investors are able to purchase securities directly from the issuer. Types of primary market issues include an initial public offering (IPO), a private placement, a rights issue, and a preferred allotment.
Which is not a function of the capital market? ›
Hence, providing better returns to direct investors is NOT the function of a capital market.
Which of the following institutions does not regulate the capital market in India? ›
Detailed Solution
The IRDAI (Insurance Regulatory and Development Authority of India) does not regulate capital markets in India. It functions to regulate and promote the insurance industries in India. The SEBI (Securities and Exchange Board of India) is the main regulator of capital markets in India.
What are the problems of the Indian primary market? ›
Disadvantages of Primary Market
There may be limited information for an investor to access before investment in an IPO since unlisted companies do not fall under the purview of regulatory and disclosure requirements of the Securities and Exchange Board of India.
Which of the following is not a part of the primary market? ›
Primary market does not include finance in the form of loan from financial institutions.
What is the primary market and its features? ›
Meaning of Primary Market
The primary market is also known as new issues market, which refers to the market where securities, such as stocks, primary bonds, and debentures, are created and issued for the first time by companies or governments in order to raise capital.
Which of the following are defining features of the primary market? ›
Final answer: The primary market is a financial platform where securities are issued for the first time in initial public offerings. The sale of these securities directs the proceeds to the issuing firm hence, answer d. Proceeds from the sale of securities go to the issuing firm.
New issue market provides opportunity to issuers of securities, Government as well as corporates, to raise resources to meet their requirements of investment and/or discharge some obligation. The issuers create and issue fresh securities in exchange of funds through public issues and/or as private placement.
Which of the following is an example of a primary market for securities? ›
An initial public offering, or IPO, is an example of a primary market. These trades provide an opportunity for investors to buy securities from the bank that did the initial underwriting for a particular stock. An IPO occurs when a private company issues stock to the public for the first time.
What is the capital market related to? ›
Capital market is a place where buyers and sellers indulge in trade (buying/selling) of financial securities like bonds, stocks, etc. The trading is undertaken by participants such as individuals and institutions. Capital market trades mostly in long-term securities.
Which instrument does not relate to capital market? ›
The correct answer is Commercial paper. Key Points Capital market: A capital market is a financial market in which investors buy and sell financial securities, such as bonds and shares.
Which of the following are included in the capital market? ›
Capital markets are used to sell financial instruments including equities and debt securities. These markets are divided into two categories: primary and secondary markets. The best-known capital markets include the stock market and the bond market.
Which of the following is not an example of capital market securities? ›
The correct answer is a. Treasury bill. Treasury bill is not an example of a capital market security....
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Important PointsFeatures of Indian Capital Market are as follows:![[Solved] Which of the following is NOT the feature of the Indian capi (2)](https://i0.wp.com/cdn.testbook.com/resources/lms_creative_elements/additional-information-image.png "[Solved] Which of the following is NOT the feature of the Indian capi (2)")
Additional InformationCapital Market:A capital market is a location where funding instruments like shares, bonds, debentures, debt instruments, and E T Fs can be traded. It is a way to raise money for private citizens, businesses, and governments.![[Solved] Which of the following is NOT the feature of the Indian capi (2024)](data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR42mP8/h8AAvMB+NzmkbcAAAAASUVORK5CYII=)