Mains Paper II · 1 Indian Economy · APPSC Group 2
1.9 Financial markets notes
5 notes, in reading order.
- 1.9.1Financial system and regulators: money and capital markets, FSDC and who regulates what
The financial system channels savings to investment through institutions, markets and instruments, overseen by several regulators who coordinate through the FSDC.
Advanced · 5 min · Full course - 1.9.2Money market instruments: call money, treasury bills, commercial paper and certificates of deposit
The money market trades short-term funds (up to one year) through call money, treasury bills, commercial paper and certificates of deposit, and RBI steers it through its liquidity operations.
Advanced · 5 min · Full course - 1.9.3Capital market: primary and secondary markets, stock exchanges and SEBI
The capital market raises long-term funds in the primary market (IPOs) and trades them in the secondary market (exchanges), under SEBI's regulation.
Advanced · 6 min · Full course - 1.9.4Capital market instruments: shares, bonds, mutual funds, derivatives, G-secs and REITs/InvITs
The capital market offers equity, debt, pooled and derivative instruments, from company shares and government securities to mutual funds, futures and REITs.
Advanced · 6 min · Full course - 1.9.5Insurance and pension sectors: IRDAI, LIC, PFRDA, NPS and the Unified Pension Scheme
Insurance is regulated by IRDAI and pensions by PFRDA; both sectors opened to private and foreign players after 1999, with 100 per cent FDI allowed in insurance by a law passed in December 2025.
Advanced · 6 min · Full course
Practise Financial markets. Questions with answers explained, from the same topics.
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