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Indian Institute of Capital Markets ©Sapient Consultants ®
Presented By:Mujeeb AnsariSapient Consultants
Career Opportunities in
Financial Sector
Indian Institute of Capital Markets ©Sapient Consultants ®
5• Growth of Indian Capital Markets
Indian Institute of Capital Markets ©Sapient Consultants ®
5• Growth of Indian Capital Markets
Contents
Indian Institute of Capital Markets ©Sapient Consultants ®
Pillars of Financial System
Indian Institute of Capital Markets ©Sapient Consultants ®
Surplus Units Deficit Units
Markets
Intermediaries
Market Based
Bank Based
Pillars of Financial System
Indian Institute of Capital Markets ©Sapient Consultants ®
Surplus Units Deficit Units
Markets
Intermediaries
Surplus Units Deficit Units Markets Intermediaries
Households
Foreign Investors
Venture Capital
Insurance Co’s
Pension Funds
Corporates
Government
Bank’s Treasury
Pillars of Financial System
Indian Institute of Capital Markets ©Sapient Consultants ®
Surplus Units Deficit Units
Markets
Intermediaries
Surplus Units Deficit Units Markets Intermediaries
Issuers
Corporate
Banks
Government
Financial Instn’s
Households
Pillars of Financial System
Indian Institute of Capital Markets ©Sapient Consultants ®
Surplus Units Deficit Units
Markets
Intermediaries
Surplus Units Deficit Units Markets Intermediaries
Stock Market
Bond Market
Forex Market
Derivatives Market
Money Market
OTC
Pillars of Financial System
Indian Institute of Capital Markets ©Sapient Consultants ®
Surplus Units Deficit Units
Markets
Intermediaries
Surplus Units Deficit Units Markets Intermediaries
Stock Exchanges
Regulators
Stock Brokers
Investment Bankers
Banks
Clearing House
Depository Particip
Custodians
CRA’s
Portfolio Managers
Mutual Fund
Pillars of Financial System
Indian Institute of Capital Markets ©Sapient Consultants ®
Surplus Units Deficit Units
Markets
Intermediaries
Surplus Units Deficit Units Markets Intermediaries
Stock Exchanges
Regulators
Stock Brokers
Investment Bankers
Banks
Clearing House
Depository Particip
Custodians
CRA’s
Portfolio Managers
Mutual Fund
Households
Foreign Investors
Insurance Co’s
Pension Funds
Corporates
Government
Bank’s Treasury
Issuers
Corporate
Banks
Government
Financial Instn’s
Stock Market
Bond Market
Forex Market
Derivatives Market
Money Market
OTC
Pillars of Financial System
Indian Institute of Capital Markets ©Sapient Consultants ®
5• Indian Capital Market – Facts & Figures
Contents
Indian Institute of Capital Markets ©Sapient Consultants ®
Functions Facilitator Example
Allocation of Risk
Pooling of Resources
Payment & Settlement System
Managing the Incentive Problem
Providing Information
Transfer of Resources Across Time & Space
Insurance Companies
Mutual Funds
Banks, Clearing House & DP’s
Broker, Management (Issuer), Investor
CRA’s, Stock Exchanges, Company, Regulators, etc
Banks, Foreign Investors, Pension Funds, etc
Sell protection against loss in value
Create Fund and Invest on behalf of Investor
SBI, NSCCL, NSDL etc
Principal – Agent Problem
Company Announcement, Disclosure Norms
Cross Border Investments
Functions of Financial System
Indian Institute of Capital Markets ©Sapient Consultants ®
5• Indian Capital Market – Facts & Figures
Contents
Indian Institute of Capital Markets ©Sapient Consultants ®
Integrated View of Financial System
Issuer
o Raise Moneyo Instruments
o Equity o Debto Hybrid
InvestmentBanker
o Advisoryo Due Diligenceo Valuationo Prospectuso Underwritingo Lead Manager
Banks
DPs
Brokers
o Subscription Management
Exchange
Investor Investor
Primary Market Secondary Market
o Listingo Trading, Clearing & Settlement
Regulators
Banks
DPs
Indian Institute of Capital Markets ©Sapient Consultants ®
5• Indian Capital Market – Facts & Figures
Contents
Indian Institute of Capital Markets ©Sapient Consultants ®
Indian Capital Market Scenario
Securities Market
Forex Market
Derivatives Market
Indian Financial Markets
Turn Over of 25k Cr per
day
Turn Over of 15k Cr Per
day
Turn Over of 75k Cr Per
day
Yearly Turn Over of RIL
$42b
Yearly Turn Over or Tata Group $70 b
Yearly Turn Over or
Infosys $5b
Indian Institute of Capital Markets ©Sapient Consultants ®
Indian Capital Market Scenario
Capital Markets(Long Term Securities)
Primary Market(through Issuances)
Secondary Market(through Stock Exchange
trading)
Equity Market(Companies & Other Body
Corporates)
Debt Market(Govt Securities & Corp
Debt)
Derivatives Market(Options & Futures)
Wholesale Segment(Institutional & large
investors)
Retail Segment(Small Investors)
Indian Institute of Capital Markets ©Sapient Consultants ®
Primary Markets
Public Issues Rights Issue Private Placements
o Offered to Publico All Investor Classes
Indian Capital Market Scenario
o Offered to existing Shareholders
o Fund raising Objectiveo VC / PE
o Strategic Objectiveo Promoters o Promoter Groupo Employeeso Senior Mgmt
Indian Institute of Capital Markets ©Sapient Consultants ®
Contents
Indian Institute of Capital Markets ©Sapient Consultants ®
05000
1000015000200002500030000350004000045000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Coun
t
Growth of Intermediaries (Computed as on 31st March each year )
Brokers (Cash Segment) Corporate Brokers (Cash Segment) Sub Brokers (Cash Segment)
Indian Capital Market – Facts & Figures
Source: SEBI
Indian Institute of Capital Markets ©Sapient Consultants ®
0
200
400
600
800
1000
1200
1400
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Coun
t
Growth of Intermediaries (Computed as on 31st March each year )
Foreign Institutional Investors Merchant Bankers Venture Capital Funds Portfolio Managers
Source: SEBI
Indian Capital Market – Facts & Figures
Indian Institute of Capital Markets ©Sapient Consultants ®
Market Capitalization (% of GDP)
0
40
80
120
160
200
Singapore UnitedStates
UnitedKingdom
France Japan Korea India Germany China
% o
f G
DP
Yr 2000 Yr 2004
Source: Federal Reserve Statistical Release Z.1,
Indian Capital Market – Facts & Figures
Indian Institute of Capital Markets ©Sapient Consultants ®
Indian Capital Market – Facts & Figures
Indian Institute of Capital Markets ©Sapient Consultants ®
Indian Capital Market – Facts & Figures
Indian Institute of Capital Markets ©Sapient Consultants ®
Queries
Indian Institute of Capital Markets ©Sapient Consultants ®
THANK YOU
