Securities Market (Industrial Securities Market)

by Akahay

Securities are financial instruments issued to raise funds.

 The market in which securities are issued, purchased by investors, and subsequently transferred among

investors is called the securities market.

 Issuers in the Indian Securities Markets are organizations that raise money by issuing securities. They may

have short-term and long-term need for capital, and they issue securities based on their need, their ability to

service the securities. Some of the common issuers in the Indian Securities Markets are:

1) Companies issue securities to raise short and long term capital for conducting their business operations.

2) Central and State Governments issue debt securities to meet their requirements for short and long term

funds to meet their deficits. Deficit is the extent to which the expense of the government is not met by its

income from taxes and other sources.

3) Local Governments and Municipalities may also issue debt securities to meet their development needs.

Government agencies do not issue equity securities.

4) Financial institutions and Banks may issue equity or debt securities for their capital needs beyond their

normal sources of funding from deposits and government grants.

5) Public Sector Companies which are owned by the government may issue securities to public investors

as part of the disinvestment program of the government, when the government decides to offer its

holding of these securities to public investors.

6) Mutual Funds issue units of a scheme to investors to mobilise money and invest them on behalf of

investors in securities.

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