Capital Market Instruments in India A Profile

1. International Journal of Trend in International Open Access Journal International Open Access Journal | www.ijtsrd.com International Journal of Trend in Scientific Research and Development (IJTSRD) Research and Development (IJTSRD) www.ijtsrd.com ISSN No: 2456 ISSN No: 2456 - 6470 | Volume - 2 | Issue – 6 | Sep 6 | Sep – Oct 2018 Capital Market Instruments Capital Market Instruments in India - A Profile A Profile Prasanta Kumar Dey Department of Commerce, Sir Gurudas Mahavidyalaya Sir Gurudas Mahavidyalaya, Associate Professor, Department Ultadanga Ultadanga, Kolkata, West Bengal, India ABSTRACT To have an idea on Capital Market, it is very much essential to know important instruments inter alia used in primary and secondary segments of capital market. Capital market instruments are those instruments which are used by the corporate entities for raising medium and long term funds from the capital market. Capital market instruments used for market trade are of two types – direct capital market instruments and indirect capital market instruments. The direct instruments are equity / ordinary shares, preference shares, debentures / bonds / notes and innovative debt instruments. Among these, securities like equity and preference shares are ownership instruments while debentures / bonds / notes and innovative debt instruments securities. Derivative instruments and others are the indirect instruments. This article contains a profile on various concepts and terminologies relating to instruments used in the capital market of India. At first, various conventional instruments of capital market have been discussed. Then, some important concepts and terminologies conventional instruments for trading on Indian bourses have been discussed. Keywords: Bonds, Debentures, Derivatives, Funds, Securities, Shares INTRODUCTION Capital market is a sine-quo-non for speedy growth and sustainable development of a country’s economy and India is no exception to it. Capital market of financial market where medium and securities like stocks and bonds are traded the business enterprises like companies governments can raise medium and long The Indian Equity Markets and the Indian Debt markets together form the Indian Capital market. different from money market where monetary assets market where monetary assets such as commercial paper, certifica treasury bills etc. which mature traded. Capital market helps to channel the we savers who can put it to the long term productive users such as companies and governments. Capital market instruments include shares, debentures, bonds, fixed deposits, derivatives etc. As they involve and debt securities, called securities and the market as securities market. A derivative whose value is derived from the value of one or more underlying assets, which can be commodities, precious metals, currency, bonds, stocks, stocks indices etc. Four most of derivative instruments Options and Swaps. Capital market instruments in India can be again classified into three categories: Pure, Hybrid and Derivatives. are equity shares, preference shares, debentures and bonds which are issued with without mixing the features of other instruments are called pure instrument. The instruments which are created by combining the features of equity, preference convertible preference debentures with equity warrant debentures, secured premium notes etc. instrument is a financial instrument which derives its value from the value of some other financial instruments or variables. Capital market instruments are linked to investments through a financial products generally instruments include shares, debentures, marketable securities of a like nature issued by incorporated company or body co body corporate, derivatives, To have an idea on Capital Market, it is very much essential to know important instruments inter alia used in primary and secondary segments of capital market. Capital market instruments are those instruments which are used by the corporate entities ising medium and long term funds from the capital market. Capital market instruments used for such as commercial paper, certificate of deposits, etc. which mature within a year are helps to channel the wealth of the long term productive such as companies and governments. Capital market instruments used for market trade include shares, debentures, bonds, foreign exchange, etc. As they involve equity securities, direct capital market instruments and indirect capital market instruments. The direct instruments are equity / ordinary shares, eference shares, debentures / bonds / notes and innovative debt instruments. Among these, securities like equity and preference shares are ownership instruments while debentures / bonds / notes and innovative debt instruments Derivative instruments and others are the indirect instruments. This article contains a profile on various concepts and terminologies relating to instruments used in the capital market of India. At first, various conventional instruments of capital have been discussed. Then, some important concepts and terminologies conventional instruments for trading on Indian the the instruments are and the market is referred to derivative is an instrument also whose value is derived from the value of one or more , which can be commodities, are are creditor creditor-ship , bonds, stocks, stocks most common instruments etc. Four common Forwards, Forwards, Futures, Capital market instruments in classified into three categories: examples examples are are Pure, Hybrid and Derivatives. The pure instruments quity shares, preference shares, debentures and relating relating to to non non- the basic characteristics t mixing the features of other instruments are hybrid instruments are nstruments which are created by combining the features of equity, preference and bond, such as onvertible preference equity warrant, partly convertible ecured premium notes etc. The derivative is a financial instrument which derives its from the value of some other financial Bonds, Debentures, Derivatives, Funds, shares shares, non-convertible non for speedy growth development of a country’s economy apital market is a part and long term are traded. From here, instruments – Savings of investors through a range of complex generally called capital market debentures, bonds or other rities of a like nature issued by any the business enterprises like companies and long-term funds. The Indian Equity Markets and the Indian Debt markets together form the Indian Capital market. It is @ IJTSRD | Available Online @ www.ijtsrd.com www.ijtsrd.com | Volume – 2 | Issue – 6 | Sep-Oct 2018 Oct 2018 Page: 459

2. International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 units issued by any collective investment scheme to the investors in such schemes, any certificate or instrument (by whatever name called) investor by any issuer being a special purpose distinct entity which possesses any debt or receivable, including mortgage debt, assigned to such acknowledging beneficial interest of such investor in such debt or receivable, including mortgage debt, as the case may be; government securities instruments as may be declared by the Central Government to be securities. This section of the article contains short instruments relating to the Indian capital market in brief as follows - 1.Equity / Ordinary shares - The capital of a company is divided into a number of indivisible units of a fixed amount. These units are known as shares. Thus, if the share capital of a company is Rs. 5 lakh divided into 50,000 units of Rs. 10, each unit of Rs. 10 shall be called a share of the company. As per Section 85 (2) of the Indian Companies Act, 1956 equity shares are those shares which are not preference shares. Again, as per Section 43 of the Companies A 2013,the share capital of a company limited by shares shall be of two kinds, namely ( share capital and (b) preference share capital. Here, equity share capital with reference to any company limited by shares means all share capital which is not preference share capital. words, shares which do not enjoy any preferential right in the matter of payment of dividend or repayment of capital are known as equity shares. Equity share may be issued with voting rights or with differential rights as to dividend, voting or otherwise in accordance with such rules as may be prescribed. Equity shares are also known as ordinary shares and typically have a par / face value and the most popular denomination is Rs. 10. However, companies are permitted to issue shares of any par value of not less than Re. in multiples of Re. 1. The price at which the equity / ordinary shares are issued is the issue price. The issue price for new companies particularly without any profit track par which is equal to the face value. Issue price may be higher for existing profit making companies, the difference / excess being the share premium. Equity shares may also be issued by the company at discount which is lower than face value. In case of existing company, t of ordinary shares refers to the paid up capital plus of ordinary shares refers to the paid up capital plus issued by any collective investment scheme to reserves and surplus (net wor number of outstanding shares. The price at which equity shares are traded in the stock market is their market value. However, the market value of unlisted / rarely traded shares is not available. variants of the equity shares are dis A.Bonus shares – As per Section 65 of the Companies Act 2013, a compan paid-up equity shares as bonus any manner whatsoever, out of reserves; (ii) the securities premium account; or (iii) the capital redemption reserve account provided that no issue of bonus shares shall be made by capitalizing reserves created by the revaluation of assets. The bonus shares shall not be issued in lieu of dividend. B.Right shares - Right shares are those shares which are issued after the original issue of shares but having an inherent right of the existing shareholders to subscribe to these shares in proportion to their holding. Such shares must be offered to the existing equity shareholders on pro rata basis. The offer of this type of shares shall be made in the form of a notice giving the particulars of shares offered and within a time not less than 15 days from the date of the offer for acceptance of such offer. These shares can also be issued to the new members when the existing shareholders do not accept the offer within a period of 15 days or more. Usually, these shares are issued among the existing shareholders at a concessional rate. But before issuing such shares the pub must follow the SEBI (Secu Board of India) Guidelines in C.Sweat equity shares - sweat equity shares of a class of shares already issued, if the following c namely - (a) the issue is resolution passed by the company; resolution specifies the number of shares, the current market price, consideration, if any, and the class or classes of directors or employees to whom such equity shares are to be issued; than one year has, at the date of such issue, elapsed since the date on which the company had commenced business; and shares of the company are listed on a stock exchange, the sweat equity shares are issued in accordance with the regulations made by the Securities and Exchange Board in this behalf and if they are not so listed, the sweat equity shares are issued in accordance with such rules as may be are issued in accordance with such rules as may be reserves and surplus (net worth) divided by the number of outstanding shares. The price at which equity shares are traded in the stock market is their market value. However, the market value of rarely traded shares is not available. Few variants of the equity shares are discussed below: As per Section 65 of the company may issue fully as bonus to its members, in any manner whatsoever, out of (i) its free ) the securities premium account; or capital redemption reserve account rovided that no issue of bonus shares shall be reserves created by the revaluation of assets. The bonus shares shall not be issued in lieu of dividend. ight shares are those shares ich are issued after the original issue of shares but having an inherent right of the existing shareholders to subscribe to these shares in proportion to their holding. Such shares must be offered to the existing equity shareholders on pro offer of this type of shares shall be made in the form of a notice giving the particulars of shares offered and within a time not less than 15 days from the date of the offer for acceptance of such offer. These shares can also be issued to when the existing shareholders do not accept the offer within a period of 15 days Usually, these shares are issued among the existing shareholders at a concessional rate. But before issuing such shares the public company Securities and Exchange Guidelines in this regard. any certificate or ument (by whatever name called) issued to an investor by any issuer being a special purpose distinct debt or receivable, including mortgage debt, assigned to such entity, and acknowledging beneficial interest of such investor in or receivable, including mortgage debt, as and such other e declared by the Central This section of the discussion Indian capital market in on various The ownership divided into a number of indivisible units of a fixed amount. These units are known as shares. Thus, if the share capital of a 5 lakh divided into 50,000 units of 10 shall be called a share ction 85 (2) of the Indian Companies Act, 1956 equity shares are those shares which are not preference shares. Again, as per Section 43 of the Companies Act the share capital of a company limited by shares shall be of two kinds, namely (a) equity ) preference share capital. Here, equity share capital with reference to any company limited by shares means all share capital which is not preference share capital. In other words, shares which do not enjoy any preferential atter of payment of dividend or repayment of capital are known as equity shares. Equity share may be issued with voting rights or with differential rights as to dividend, voting or otherwise in accordance with such rules as may be A company may issue sweat equity shares of a class of shares already issued, if the following conditions are fulfilled, are also known as typically have a par / face authorized by a special value and the most popular denomination is Rs. 10. However, companies are permitted to issue shares of any par value of not less than Re. 1 and 1. The price at which the shares are issued is the issue price. The issue price for new companies resolution passed by the company; (b) the resolution specifies the number of shares, the current market price, consideration, if any, and the class or classes of directors or employees to whom such equity shares are to be issued; (c) not less than one year has, at the date of such issue, elapsed since the date on which the company had commenced business; and (d) where the equity shares of the company are listed on a recognized stock exchange, the sweat equity shares are issued in accordance with the regulations made by the Securities and Exchange Board in this behalf and if they are not so listed, the sweat equity shares profit track-record is at par which is equal to the face value. Issue price may be higher for existing profit making excess being the share Equity shares may also be issued by the company at discount which is lower than face value. In case of existing company, the book value @ IJTSRD | Available Online @ www.ijtsrd.com www.ijtsrd.com | Volume – 2 | Issue – 6 | Sep-Oct 2018 Oct 2018 Page: 460

3. International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 prescribed. The rights, limitations, restrictions and provisions as are for the time being applicable to equity shares shall be applicable to the sweat equity shares issued under this section and the holders of such shares shall rank pari passu other equity shareholders. D.Share Warrant - A share warrant issued by the company under its common seal, stating that its bearer is entitled to the shares or stock specified therein. A warrant holder acquires only the right / option but he / she have no obligation to acquire the equity shares. Warrants are usually issued along with other instruments or can be issued separately. Share warrants are negotiable instruments. They are transferable by mere delivery without registration of transfer. Warrants can be issued in two forms viz.: (1) Detachable warrant and (2) Non warrant. 2.Preference Shares - Preference share is a unique type of long-term capital market instrument combines some of the features of equity shares as well as some of debentures. As a hybrid financing instrument, it is similar to debentures in so far as it: (i) carries a fixed / dividend (ii) ranks higher than equity as a claimant to the income / assets (iii) normally does not have voting rights and (iv) does not have a share in residual earnings / assets. It also partakes some of the attributes of equity capital, namely, (i) dividend on preference capital is paid out of divisible / after tax profit, that is, it is not tax deductible (ii) payment of preference dividend depends on the discretion of the management, that is, it is not an obligatory payment, and non payment does not force insolvency and (iii) irredeemable types of preference shares have no fixed maturity date. There are se types of preference shares discussed as below: A.Participating preference shares - shares are entitled to get regular dividend at fixed rate. Moreover, they have a right for surplus of the company beyond a shareholders are also allowed to share in surplus assets of the company being wound up. B.Non-participating preference shares holders of this type of shares are not entitled to share the additional benefits that are happened in case of participating preference shares. C.Cumulative preference shares - For shares, the dividend not paid in a particular year due to non-availability of profit, the shareholders availability of profit, the shareholders ibed. The rights, limitations, restrictions and provisions as are for the time being applicable to equity shares shall be applicable to the sweat equity shares issued under this section and the are entitled to get arrear dividend out o the subsequent year or years. D.Non-cumulative preference s holders of non-cumulative preference shares are not entitled to get arrear dividend out of profit of subsequent year or years in case of non availability of profit to d year. E.Convertible preference s be converted to equity shares at the option of the holder. Hence, these shares are also known as quasi equity shares. Conversion of preference shares in to bonds or debentures is company wishes. The conversion feature makes preference shares more acceptable to investors. Even though the market for preference shares is not good at a point of time, the convertibility will make it attractive. F.Non-convertible preferable s preference shares without the right of conversion are called non-convertible preference shares. G.Redeemable preference s may issue redeemable preference shares to avoid fixed liability of payment, of equity shares and to make the capital structure simple or such other reasons. redeemed after a given period. repaid by the company on (i) the shares must be fully paid up; (ii) it must be redeemed either out of profit or out of reserve fund for the purpose; (iii) the premium must be paid if any. H.Irredeemable preference s may issue irredeemable preference shares and these shares are not redeemable except on the liquidation of the company. 3.Debentures - Debenture is an instrument under seal evidencing debt. The essence of debenture is admission of indebtedness. It is a debt instrument issued by a company with a promise to pay interest and repay the principal on maturity. Debentures represent creditor debenture-holders are long term creditors of th company. As a secured instrument, it is a promise to pay interest and repay principal at stipulated times. In contrast to equity capital, which i variable income security (i.e. in respect of dividend), the debentures are fixed income (i.e. in respect of interest) security. Companies Act, 1956 states that debenture includes debenture stock, bonds and securities of a company and Sec 2(30) of t securities of a company and Sec 2(30) of the are entitled to get arrear dividend out of profit of the subsequent year or years. cumulative preference shares – But, the cumulative preference shares are not entitled to get arrear dividend out of profit of subsequent year or years in case of non- availability of profit to declare dividend in any pari passu with is a document issued by the company under its common seal, stating that its bearer is entitled to the shares or A warrant holder acquires only the right / option but he / she have no bligation to acquire the equity shares. Warrants are usually issued along with other instruments or Convertible preference shares - Such shares can be converted to equity shares at the option of the holder. Hence, these shares are also known as quasi equity shares. Conversion of preference shares in to bonds or debentures is permitted if company wishes. The conversion feature makes preference shares more acceptable to investors. Even though the market for preference shares is not good at a point of time, the convertibility will Share warrants are negotiable instruments. They are transferable by mere delivery without registration of transfer. e issued in two forms viz.: (1) Detachable warrant and (2) Non-detachable convertible preferable shares – The preference shares without the right of conversion convertible preference shares. Redeemable preference shares - A company redeemable preference shares to avoid fixed liability of payment, to increase the earnings to make the capital structure simple or such other reasons. These shares are redeemed after a given period. Such shares can be on certain conditions, viz.: (i) the shares must be fully paid up; (ii) it must be ed either out of profit or out of reserve fund for the purpose; (iii) the premium must be hare is a unique term capital market instrument and it combines some of the features of equity shares as debentures. As a hybrid form of instrument, it is similar to debentures in stated rate of dividend (ii) ranks higher than equity as a assets (iii) normally does nd (iv) does not have a assets. It also partakes some of the attributes of equity capital, namely, (i) dividend on preference capital is paid out of after tax profit, that is, it is not tax Irredeemable preference shares – A company may issue irredeemable preference shares and hese shares are not redeemable except on the company. Debenture is an instrument under seal evidencing debt. The essence of debenture is admission of indebtedness. It is a debt instrument issued by a company with a promise to pay interest and repay the principal on maturity. epresent creditor shipsecurities and holders are long term creditors of the company. As a secured instrument, it is a promise repay principal at stipulated times. In contrast to equity capital, which is a security (i.e. in respect of dividend), the debentures are fixed income (i.e. in respect of interest) security. Sec 2 (12) of the Companies Act, 1956 states that debenture includes debenture stock, bonds and other preference dividend depends on the discretion of the management, that is, it is not an obligatory payment, and non- payment does not force insolvency / liquidation and (iii) irredeemable types of preference shares There are several types of preference shares discussed as below: - This kind of shares are entitled to get regular dividend at fixed rate. Moreover, they have a right for surplus of the company beyond a shareholders are also allowed to share in surplus assets of the company being wound up. certain certain limit. limit. These hares – The holders of this type of shares are not entitled to share the additional benefits that are happened in ting preference shares. For such type of he dividend not paid in a particular year @ IJTSRD | Available Online @ www.ijtsrd.com www.ijtsrd.com | Volume – 2 | Issue – 6 | Sep-Oct 2018 Oct 2018 Page: 461

4. International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 Companies Act, 2013, debenture debenture stock, bonds or any other instrument of a company evidencing constituting a charge on the assets of the company or not. It is customary to appoint a trustee, usually an investment bank to protect the interests of the debenture holders. This is necessary as debenture deed would specify the rights of the debenture holders and the obligations of the company. are several types of debentures discussed as below: A.Bearer Debentures - Bearer debentures are payable to bearer and are transferable by mere delivery. Interest coupons are attached to the certificate or bond. As interest date approac the appropriate coupon is clipped off by the holder of the bond and deposited in his bank for collection. The bank may forward it to the fiscal agent of the company and proceeds are collected. Such bonds are negotiable by delivery. B.Registered Debentures - In the case of registered debentures, the name and address of the holder and date of registration are entered in a book kept by the company. The holder of such a debenture bond has nothing to do except to wait for interest payment which is automatically sent him on every payment date. When such debentures are registered as to principals only, coupons are attached. The holder must detach the coupons for interest payment and collect them as in the case of bearer bonds. C.Secured Debentures - Debenture which create charge on the property of the company is a secured debenture. The charge may be floating or fixed. The floating charge is not attached to any particular asset of the company. But when the company goes into liquidation the charge becomes fixed. Fixed charge debentures are those where specific asset or group of assets is pledged as security. The details of these charges are mentioned in the trust deed. D.Unsecured / Naked Debentures - protected through any charge by any property or assets of the company. They are also known as naked debentures. Well established and credit worthy companies can issue such shares. E.Redeemable Debentures - When the debentures are redeemable, the company has the right to call them before maturity. The debentures off before maturity, if the company can afford to do so. Redemption can also be brought about by do so. Redemption can also be brought about by debentureǁ includes issuing other securities less costly to the company in the place of the old ones. F.Convertible Debentures given to convert debentures in after a specific period, they are called as convertible debentures. give the holders the right equity shares on certain terms. They are entitled to a fixed income till the conversion option is exercised and would share with equity shares after the conversion. details about conversion conversion ratio, conversion premium conversion timing are specified in the document / prospectus. Companies can issue Fully Convertible Debentures Convertible Debentures (PCDs). G.Non-convertible Debentures issues, the holders of such debentures can buy a specified number of shares from the predetermined price. The option can be exercised only after a specified period. H.Perpetual Debentures- issued subject to redemption on the happening of specified events which may not happen or an indefinite period, i.e. winding up, they are called perpetual debentures. 4.Innovative Debt Instruments improve the attractiveness of fixed income securities,namely - bonds and debentures, some new features have been added. As a range of innovative debt securities have emerged in India,particularly, after the early nineties. Bonds are debt instruments that are issued by companies / governments to raise funds for financing their capital purchasing a bond, an investor lends money for a fixed period of time at a predetermined inte (coupon) rate. Bond has fixed face value which is the amount to be returned to the investor upon maturity of the bond. During this period, the investors receive a regular payment of interest, semi-annually or annually, which is calculated as a certain percentage of the face value and known as a ‘coupon payment.’ Bonds can be issued at par, at discount or at premium. and bonds mean the same. In Indian parlance, debentures are issued by government or semi-government bodies. But now, corporate are also issuing bonds which carry comparatively lower interest rates and preference in repayment at the time of winding up, in repayment at the time of winding up, issuing other securities less costly to the company in the place of the old ones. debenture stock, bonds or any other instrument of a company evidencing constituting a charge on the assets of the company It is customary to appoint a trustee, usually o protect the interests of the debenture holders. This is necessary as debenture deed would specify the rights of the debenture holders and the obligations of the company. There are several types of debentures discussed as a a debt, debt, whether whether - When an option is given to convert debentures into equity shares after a specific period, they are called as Convertible debentures e the holders the right toconvert them into equity shares on certain terms. They are entitled to ill the conversion option is exercised and would sharethe benefits associated with equity shares after the conversion.All the details about conversion conversion ratio, conversion premium / price and conversion timing are specified in the offer prospectus. Companies can issue Fully Convertible Debentures Convertible Debentures (PCDs). convertible Debentures – If the company issues, the holders of such debentures can buy a specified number of shares from the company at a predetermined price. The option can be exercised only after a specified period. r debentures are terms, terms, namely, namely, payable to bearer and are transferable by mere delivery. Interest coupons are attached to the certificate or bond. As interest date approaches, clipped off by the holder (FCDs) (FCDs) or or Party Party of the bond and deposited in his bank for ollection. The bank may forward it to the fiscal agent of the company and proceeds are collected. Such bonds are negotiable by delivery. In the case of registered the name and address of the holder and date of registration are entered in a book kept by the company. The holder of such a debenture bond has nothing to do except to wait for interest payment which is automatically sent him on every If the debentures are issued subject to redemption on the happening of specified events which may not happen or an nding up, they are called ch debentures are Innovative Debt Instruments - In order to improve the attractiveness of fixed income bonds and debentures, some new features have been added. As aresult, a wide registered as to principals only, coupons are attached. The holder must detach the coupons for interest payment and collect them as in the case of which creates a securities have emerged charge on the property of the company is a secured debenture. The charge may be floating or fixed. The floating charge is not attached to any particular asset of the company. But when the company goes into liquidation the charge becomes rge debentures are those where specific asset or group of assets is pledged as security. The details of these charges are to be particularly, after the early nineties. Bonds are debt instruments that are issued by governments to raise funds for financing their capital purchasing a bond, an investor lends money for a ed period of time at a predetermined interest fixed face value which is the amount to be returned to the investor upon During this period, the investors receive a regular payment of interest, annually, which is calculated as a certain percentage of the face value and known as a ‘coupon payment.’ Bonds can be issued at premium. Both debentures and bonds mean the same. In Indian parlance, requirements. requirements. By By These are not protected through any charge by any property or of the company. They are also known as naked debentures. Well established and credit worthy companies can issue such shares. When the debentures are redeemable, the company has the right to call them before maturity. The debentures can be paid off before maturity, if the company can afford to corporate and bonds by government bodies. But now, are also issuing bonds which carry comparatively lower interest rates and preference @ IJTSRD | Available Online @ www.ijtsrd.com www.ijtsrd.com | Volume – 2 | Issue – 6 | Sep-Oct 2018 Oct 2018 Page: 462

5. International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 comparing to debentures. The government, public sector units and corporate are the dominant issuers in the bond market. Bonds issued by the Government of India can be traded in the secondary market. The different types are discussed as below: A.Zero Interest Bonds (ZIBs) - Also known as Zero Coupon Bonds (ZCBs) or Zero Interest Debentures (ZIDs), the instruments do not carry any explicit / coupon rateof interest. They are sold at a discount from their maturity value. The difference between the face value of the bond and the acquisition cost isthe gain / investors. The implicit rate of return suchbonds can be computed by the equation: Acquiring price = Maturity (Face) Value / (1+i) where, i = rate of interest per rupee per year and n = maturity period (years). B.Deep Discount Bond (DDB) - A Deep Discount Bond is a form of Zero Interest Bond (ZIB). It is issued at a deep / steep discount over its face value. It implies that theinterest (coupon) rate is far less than the yield to maturity. The DDB appreciates to its face value over the maturity period. DDBs are being issued by the public financial institutions in India, namely SIDBI and so on. C.Mortgage Bonds - This is the common type of bonds issued by the corporate. Mortgage bonds are secured by physical assets of the corporation such as their building or equipment. D.Convertible Bonds - This type of bond allows the bond holder to convert their bonds into shares of stock of the issuing corporation. Conversion ratio (number of equity shares in lieu of a convertible bond) and the conversion price (determined at the time of conversion) are pre-specified at the time of bonds issue. E.Step-Up Bonds - A bond that pays a lower coupon rate for an initial period which, then increases to a higher coupon rate. F.Callable and Non-Callable Bonds be called (redeemed) prior to maturity, the bond is said to be callable. If a bond cannot be called prior to maturity, it is said to be non-callable. from 1992, when the Industrial Development Bank ofIndia issued bonds with call features, several callable bonds haveemerged in the country in the recent years. Call provisions provideflexibility to the company to redeem them prematurely. Generally, firmsissue bonds at a The government, public are the dominant issuers presumably lower rate o conditions are favorable to redeem such bonds. G.Option Bonds - In this type, the investors have the option to choose between cumulative or non cumulative bonds. In the case of cumulative bonds, interest is accumulated and is payable o maturity only. In non-cumulative type interest is paid periodically. H.Bonds with Warrants - holder to buy a number of equity shares at a pre specified price in future. Bonds are issued with warrants to make it more attractive. I.Floating Rate Bonds (FRBs) bonds are bonds wherein the interest rate is not fixed and is linked to a benchmark rate interest on treasury bills, bank rate and rate on term deposits. It is typically a certain percentage pointhigher than the benchmark rate. The price of FRBs tends to be fairly close to par value in comparison to fixed interest bonds. Theyprovide protection against inflation risk to investors, particularly in interest rates provided by banks a institutions. J.Secured Premium Notes (SPNs) secured debenture, redeemable at a premium over theface value / purchase price. It resembles ZIB. There is a lock-in-period which no interest is paid. The holder h option tosell the SPN back to the issuing company, at par, after the lock redemption is made in installments. The SPN is a tradableinstrument.Although the SPN is akin to a ZIB to the extent it has no coupon rate (where the interest payment and principal repayment arespread over a period of some years), whereas in case of ZIBs the entire is made in lump sum on maturity. 5.Derivative instruments instrument whose value is derived from the value ofone or more underlying commodities, precious metals, stocks, stock indices, etc. Derivative instruments inIndianstock exchanges are Index Futures, Stock Futures, Options on Index and Individual Stocks. At present on NSE, different Index Futuresare Nifty Future, Bank and CNX IT Future and different are Option on Nifty, Option on Bank Nifty and Option onCNX IT. Besides these, Stock Futures on specified individual stocks on NSE an those specified stocks on NSE are allowed to those specified stocks on NSE are allowed to f interest when market conditions are favorable to redeem such bonds. In this type, the investors have the option to choose between cumulative or non- cumulative bonds. In the case of cumulative interest is accumulated and is payable on cumulative type interest is in the bond market. Bonds issued by corporate and the Government of India can be traded in the types of bonds Also known as upon Bonds (ZCBs) or Zero Interest Debentures (ZIDs), the instruments do not carry - A warrant allows the of interest. They are holder to buy a number of equity shares at a pre- specified price in future. Bonds are issued with warrants to make it more attractive. (FRBs) - Floating rate bonds are bonds wherein the interest rate is not fixed and is linked to a benchmark rate such as interest on treasury bills, bank rate andmaximum rate on term deposits. It is typically a certain than the benchmark rate. The price of FRBs tends to be fairlystable and close to par value in comparison to fixed interest provide protection against inflation risk to investors, particularly incomparison to interest rates provided by banks and financial sold at a discount from their maturity value. The difference between the face value of the bond and return to the investors. The implicit rate of return / interest on bonds can be computed by the equation: ty (Face) Value / (1+i)n est per rupee per year and n A Deep Discount Bond is a form of Zero Interest Bond (ZIB). It is steep discount over its face interest (coupon) rate is far less than the yield to maturity. The DDB appreciates to its face value over the maturity period. DDBs are being issued by the public financial institutions in India, namely - IDBI, Secured Premium Notes (SPNs) - The SPN is a secured debenture, redeemable at a premium over purchase price. It resembles to a periodfor SPN, during This is the common type of . Mortgage bonds red by physical assets of the corporation which no interest is paid. The holder has the sell the SPN back to the issuing company, at par, after the lock-in-period.The redemption is made in installments. The SPN is a Although the SPN is akin to a ZIB to the extent it has no coupon rateof interest the interest payment and principal spread over a period of some years), whereas in case of ZIBs the entirepayment is made in lump sum on maturity. This type of bond allows the bond holder to convert their bonds into shares of stock of the issuing corporation. Conversion ratio lieu of a convertible bond) and the conversion price (determined at the specified at the time of - Derivative is an A bond that pays a lower coupon rate for an initial period which, then instrument whose value is derived from the value one or more underlying assets which can be commodities, precious metals,currency, bonds, stocks, stock indices, etc. Derivative instruments stock exchanges are Index Futures, Stock Futures, Options on Index andOptions on present on NSE, different Nifty Future, Bank Nifty Future, and differentIndex Options Option on Nifty, Option on Bank Nifty and CNX IT. Besides these, Stock Futures on specified individual stocks on NSE and on - If a bond can be called (redeemed) prior to maturity, the bond is said to be callable. If a bond cannot be called prior callable.Beginning from 1992, when the Industrial Development India issued bonds with call features, emerged in the country in the recent years. Call provisions flexibility to the company to redeem them issue bonds at a @ IJTSRD | Available Online @ www.ijtsrd.com www.ijtsrd.com | Volume – 2 | Issue – 6 | Sep-Oct 2018 Oct 2018 Page: 463

6. International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 trade. A brief description on each type derivative instruments in Indian market is under: A.Sensex Future and Nifty Future - in BSE is a financial derivative product enabling one to buy orsell underlying Sensex on a future date at a price decided by the market It is the first financial derivative product The security name used for Sensex Fu is BSX. On NSE,the similar type of index future is Nifty Future.The security name and ticker symbol used for Nifty Future is NFUTIDX NIFTY. B.Stock Future - Stock Future is a financial derivative product where the underlying asset is an individual stock. It is also called E This derivative product enables one to buy or sell the underlying stock on a future date at a price decided by the market forces today. theoretical price of a future contract is sum of the current spot price and cost of carry. However, th actual price of futures contract very upon the demand and supply of the underlying stock. Generally, the Futures prices are higher than the spot prices of the underlying stocks. Futures Price = Spot price + Cost of Carry. Cost of Carry is the interest cost of a similar position in cash market and carried the Futures contract less any dividend expected till the expiry of the contract. Example: Spot Price of Infosys = Rs. 2000; Interest Rate = 12% p.a. Futures Price of 1 month contract = Rs. 2,000 + Rs. (2,000 x 0.12 x 30/365) = Rs. (2,000+20) = Rs. 2,020. C.Stock Index - It is a financial derivative product where the underlying asset is the stock index of a particular stock exchange. derivative product enables one to buy or sell Call Option or Put Option (to be exercised at a future date) on the underlying asset (i.e. Stock Index) at a premium decided by the market forces today. On NSE, currently among various Stock Index Options available for trading, Options on Nift and Options on Nifty Junior are very popular. On BSE, the most commonly used Stock Index Option is Option on Sensex. A Stock Index Option gives an investor the right to buy or sell the value of an index which represents a group of stocks. Such Index Options are quoted with Price and Premium per Option in Rupees along with paise.A Call Option gives the holder (buyer/one who is long Call), the right to buy (buyer/one who is long Call), the right to buy each type of specified quantity of the underlying asset at the strike price on or before expiration date in case of American style of Option. The seller (one who is short Call) however, has the obligation to sell the underlying asset if the buyer of the Call Option decides to exercise his Option to buy. Example: An investor buys One European Call Option of sys at the strike price of Rs. 2,000 at a premium of Rs. 100. If the market price of Infosys on the day of expiry is more than Rs. 2,000, the Option will be exercised. The investor will earn profits once the share price crosses Rs. 2,100 (, ice Rs. 2,000 + Premium Rs. 100). Suppose stock price on the expiry date is Rs. 2,300, the Option will be exercised and the investor will buy 1 share of Infosys from the seller of the Option at Rs. 2,000 and sell it in the market at Rs. 2,300 making a profit of Rs. 200 {(Spot specified quantity of the underlying asset at the strike price on or before expiration date in American style of Option. The seller (one who is short Call) however, has the obligation to sell the underlying asset if the buyer of the Call Option decides to exercise his Option to buy. An investor buys One European Call Option of Infosys at the strike price of Rs. 2,000 at a premium of Rs. 100. If the market price of Infosys on the day of expiry is more than Rs. 2,000, the Option will be exercised. The investor will earn profits once the share price crosses Rs. 2,100 (, i.e., strike Price Rs. 2,000 + Premium Rs. 100). Suppose stock price on the expiry date is Rs. 2,300, the Option will be exercised and the investor will buy 1 share of Infosys from the seller of the Option at Rs. 2,000 and sell it in the market at Rs. 2,300 making a prof price – Strike price) – scenario, if at the time of expiry, stock price falls below Rs. 2,000, suppose it touches Rs. 1,800, the buyer of the Call Option will choose not to exercise his Option. In this case the inv the premium paid (i.e., Rs. 100), which shall be the profit earned by the seller of the Call Option. A Put Option gives the holder (buyer/one who is long Put), the rightto sell specified quantity of the underlying asset at the strike price on expiry date (in case of American style Option). The seller ofthe Put Option (one who is short Put) however, has the obligation to buy asset at the strike price if the buyer decides to exercise hisOption to sell. buys one European Put Option of HPCL at the strike price of Rs. 300, at a premium of Rs. 25. If the market price ofHPCL, on the day of expiry is less than Rs. 300, the Option can be is ‘in the money’. The investor’s Break Even Point (i.e.,no profit no loss situ (Strike Price - Premium paid). The earn profit if the market falls below Rs. 275. Suppose stock price is Rs. 260, the buyer of the Put Option immediately buys HPCL market @ Rs. 260 and exercises his Option, selling the HPCL share at Rs. 300 to the Option writer thus making a net profit of Rs. 15 price – Spot price) – Premium paid}. In another scenario, if at the time of expiry, market price of HPCL is Rs. 320, the buyer of choose not to exercise his Option to sell as he can sell in the market at a higher rate. In this case the investor loses the premium paid investor loses the premium paid (i.e. Rs. 25), instruments in Indian market is made as Sensex Future is a financial derivative product enabling sell underlying Sensex on a future date at a price decided by the marketforces today. st financial derivative product in India. The security name used for Sensex Future in BSE the similar type of index-based The security name and ticker symbol used for Nifty Future is NFUTIDX Stock Future is a financial derivative product where the underlying asset is idual stock. It is also called Equity Future. This derivative product enables one to buy or sell the underlying stock on a future date at a price decided by the market forces today. The uture contract is sum of the Premium}. In another scenario, if at the time of expiry, stock price falls below Rs. 2,000, suppose it touches Rs. 1,800, the buyer of the Call Option will choose not to exercise his Option. In this case the investor loses the premium paid (i.e., Rs. 100), which shall be the profit earned by the seller of the Call Option. gives the holder (buyer/one who is to sell specified quantity of the underlying asset at the strike price on orbefore the expiry date (in case of American style Option). the Put Option (one who is short Put) however, has the obligation to buythe underlying asset at the strike price if the buyer decides to Option to sell. Example: An investor buys one European Put Option of HPCL at the strike price of Rs. 300, at a premium of Rs. 25. If HPCL, on the day of expiry is less than Rs. 300, the Option can beexercised as it . The investor’s Break Even no profit no loss situation) is Rs. 275 Premium paid). Theinvestor will et falls below Rs. 275. price is Rs. 260, the buyer of the Put Option immediately buys HPCL share in the and exercises his Option, share at Rs. 300 to the Option writer thus making a net profit of Rs. 15 {(Strike Premium paid}. In another the time of expiry, market price of HPCL is Rs. 320, the buyer of the Put Option will choose not to exercise his Option to sell as he can market at a higher rate. In this case the . However, the much depends upon the demand and supply of the underlying Generally, the Futures prices are higher underlying stocks. Futures Price = Spot price + Cost of Carry. e interest cost of a similar to maturity of the Futures contract less any dividend expected till : Spot Price of Infosys = Rs. 2000; Interest Rate = 12% p.a. ntract = Rs. 2,000 + 30/365) = Rs. (2,000+20) = It is a financial derivative product stock index of a particular stock exchange. This This buy or sell Call exercised at a future financial financial date) on the underlying asset (i.e. Stock Index) at premium decided by the market forces today. On various Stock Index Options on Nifty are very popular. On used Stock Index . A Stock Index gives an investor the right to buy or sell represents a group of ons are quoted with Strike per Option in Rupees along gives the holder @ IJTSRD | Available Online @ www.ijtsrd.com www.ijtsrd.com | Volume – 2 | Issue – 6 | Sep-Oct 2018 Oct 2018 Page: 464

7. International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 which shall be the profit earned by the seller of the Put Option. D.Swaps - A swap is a derivative contract two parties to exchange cash flows in the future according to a prearranged formula regarded as portfolios of forward contracts. Interest rate swaps and currency swaps are most popular swap contracts which ar over the counters between financial institutions. These contracts are not traded on exchanges. Retail investors generally do not trade in swaps. E.Forward contract - A forward contract is an Over The Counter (OTC) customized between two parties – a buyer and a seller to purchase or sell something at a later date at a price agreed upon today. Forward contracts, sometimes called forward commitments are very common in everyone life. Any type of contractual agreement that calls for the future purchase of a good or service at a price agreed upon today and without the right of cancellation is a forward contract. 6.Government instruments – The government, either central government, state government or local governments, such as, municipalities, metropolitan authorities, port trusts, development trusts, state electricity boards, public sector undertakings and other government agencies, viz. IDBI, SFCs, NABARD, SIDCs, etc. term funds by issuing bonds. These bonds do not carry any risk and they are as good as government guarantees in regard to the payment of interest as well as repayment of principal money. also known as gilt-edged bonds. 7.Fixed Deposit - Fixed Deposit is that kind of bank account, where the amount of deposit is fixed for a specified period of time. All Commercial banks are given these opportunities to their customers for opening a fixed account in their bank. In a Fixed account, the amount of deposit is fixed, which means we cannot withdraw an unlimited amount from this account; therefore it is also called a Fixed Deposit. If an account holder wants to withdraw a small amount of money from their account, then he will require closing of t deposit account. The main purpose of account holders to open this account is to earn interest money from their actual money, which is given by the banks during a specified period of time. 8.Hedge Fund - Hedge funds including fund of funds are unregistered partnership, funds or pools that may invest and trade in many different markets, strategies and in many different markets, strategies and which shall be the profit earned by the seller of the instruments (including securities, non securities and derivatives) and are not subject to the regulatory requirements including mutual fund requirements to provide certain periodic and standardized pricing and valuation information to investors. Hedge funds are sometime called as rich man’s mutual funds. 9.Gold Exchange Trade funds Funds) Amendment Regulations dated January 24, 2006 permitted introduction of Gold Traded Fund schemes by Mutual Fund. Gold Exchange Traded Fund (GETF) schemes are permitted to invest primarily in Gold related instruments i.e. such instruments having gold as underlying as are specified by SEBI from time to time. 10.Foreign instruments instruments which are very much attractive to the investors in the global financial markets. instruments are denominated in dollars. instruments are mentioned as follows: A.NRI bonds – NRI bonds are forex deposits raised from non-resident Indians at attractive rates for 3 5 years, with some lock- guarantee. RBI issues NRI bonds rupee and offset the slowdown investment (FPI) flows amid rising oil prices FPI inflows to India will be impacted by Chinese firms listing in global benchmark MSCI. According to a Bank of America Merrill Lynch (BofAML) report, the listing in benchmark indices will shift up to USD 100 billion to China market by 2019. B.ADR / GDR - Indian Capital Market was dominated mostly by Indian investors till early part of the 1990s. Since 1992, being integrated with global market, Indian Companies have been raising funds not only from the local markets and institutions but also from foreign markets as well in the form of ADRs (American Depository Receipts) and GDRs Receipts). These two instruments are collectively known as Euro Issues. This gives Indian Companies access to low cost funds but they have to adopt international accounting practices in order to approach the foreign markets. C.IDRs – Indian Depository Receipts (IDRs) are the instruments denominated in Indian rupees in the form of depository receipts against the underlying equity of issuing company enabling foreign companies to raise funds from the Indian market. It is a positive step of government It is a positive step of government of India to securities, non securities and derivatives) and are not subject to the same regulatory requirements requirements to provide certain periodic and standardized pricing and valuation information to investors. Hedge funds rich man’s mutual funds. Gold Exchange Trade funds - SEBI (Mutual a derivative contract between as as mutual mutual f funds, two parties to exchange cash flows in the future according to a prearranged formula. They can be regarded as portfolios of forward contracts. Interest rate swaps and currency swaps are the which are traded over the counters between financial institutions. These contracts are not traded on exchanges. Retail investors generally do not trade in swaps. A forward contract is an Over The Counter (OTC) customized agreement a buyer and a seller to purchase or sell something at a later date at a price agreed upon today. Forward contracts, sometimes lations dated January 24, 2006 permitted introduction of Gold Exchange Traded Fund schemes by Mutual Fund. Gold Traded Fund (GETF) schemes are permitted to invest primarily in Gold and Gold related instruments i.e. such instruments having underlying as are specified by SEBI from – are very common in There are some everyone life. Any type of contractual agreement instruments which are very much attractive to the investors in the global financial markets. These instruments are denominated in dollars. These instruments are mentioned as follows: purchase of a good or service at a price agreed upon today and without the right of cancellation is a forward contract. The government, are forex deposits raised either central government, state government or s, such as, municipalities, ropolitan authorities, port trusts, development te electricity boards, public sector undertakings and other government agencies, viz. IDBI, SFCs, NABARD, SIDCs, etc. raises long resident Indians at attractive rates for 3- -in and an implicit RBI NRI bonds to support the rupee and offset the slowdown in foreign portfolio amid rising oil prices. The FPI inflows to India will be impacted by Chinese listing in global benchmark indices like According to a Bank of America Merrill These bonds do not they are as good as government guarantees in regard to the payment of interest as well as repayment of principal money. These are the listing in benchmark indices will shift up to USD 100 billion to China Fixed Deposit is that kind of bank account, where the amount of deposit is fixed for a specified period of time. All Commercial banks are given these opportunities to their customers for opening a fixed account in their bank. In a unt of deposit is fixed, which means we cannot withdraw an unlimited amount from this account; therefore it is also called a Fixed Deposit. If an account holder wants to withdraw a small amount of money from their account, then he will require closing of the fixed deposit account. The main purpose of account holders to open this account is to earn interest money from their actual money, which is given by the banks during a specified period of time. Hedge funds including fund of Indian Capital Market was dominated mostly by Indian investors till early ce 1992, being integrated arket, Indian Companies have been raising funds not only from the local markets and institutions but also from foreign markets as well in the form of ADRs (American Depository Receipts) and GDRs Receipts). These two instruments are collectively known as Euro Issues. This gives Indian Companies access to low cost funds but they have to adopt international accounting practices in order to approach the foreign markets. tory Receipts (IDRs) are the instruments denominated in Indian rupees in the form of depository receipts against the underlying equity of issuing company enabling foreign companies to raise funds from the Indian market. (Global (Global Depository private private investment investment partnership, funds or pools that may invest and @ IJTSRD | Available Online @ www.ijtsrd.com www.ijtsrd.com | Volume – 2 | Issue – 6 | Sep-Oct 2018 Oct 2018 Page: 465

8. International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456 International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470 5.Vashisht, A. K. & Gupta, R. K. (2005), Investment Management and Stock Market, Deep & Deep Publication Pvt. Ltd. New Delhi & Deep Publication Pvt. Ltd. New Delhi integrate Indian capital market with the global capital markets in the era of globalization of economy. CONCLUSION Capital market refers to a type of financial market where individuals and institutions are trading in financial securities issued by governments and companies from time to time. Here the buyers and sellers of securities can enter to purchase and sell all types of securities like shares, debentures, bonds, etc. These capital market instruments play important role in Indian economy under the present scenario of globalization and liberalization. measures have been taken by the government of India after 1990s. Presently, Indian capital market is not only for Indian investors. It facilitates the internationalization of Indian economy by linking it with rest of the world. The lace of advance and vibrant capital market instruments can lead to under utilization of financial resources. The above list of capital market instruments is not exhaustive but inclusive. Other instruments may be created with the approval of capital market regulator depending upon the requirement of the economy and industry. REFERENCES Books: 1.Sarkhel Jaydeb and Gupta Arindam Capital Market: Theory and Institutions, Syndicate Private Ltd. 2.Das Subhash Chandra (2015), System in India: Institutions, Services and Regulation, PHI Learning Private Limited, Delhi. 3.Bhaskara, P. Vijaya & Mahapatra, B. (2003), Derivatives Simplified: An Introduction to Risk Management, Sage Publication, New Del 4.Majumdar, A. K. and Kapoor. G. K. (2005), Students’ Guide To Company Law, Publications (P) Ltd., New Delhi integrate Indian capital market with the global capital markets in the era of globalization of Vashisht, A. K. & Gupta, R. K. (2005), Investment Management and Stock Market, Deep Articles in Journals: 1.Vashistha, S. D., The Secondary Capital Market: Some Important Aspects, Commerce, Conference Issue (2001) 4 2.Vijaysingh Thakur Devendrasingh, Emerging Issues in Capital Market, Commerce, Conference Issue (2001) 4 3.Thakur, P. C. and J. Raghakardar Pal Singh, Reflections on the Changing Scenario of the Indian Stock Exchanges, Commerce, Conference Issue (2001) 4 Vashistha, S. D., The Secondary Capital Market: Some Important Aspects, The Indian Journal of Commerce, Conference Issue (2001), Vol. 54 No. s to a type of financial market where individuals and institutions are trading in issued by governments and Here the buyers and Vijaysingh Thakur Devendrasingh, Emerging Issues in Capital Market, The Indian Journal of ference Issue (2001), Vol. 54 No. sellers of securities can enter to purchase and sell all types of securities like shares, debentures, bonds, etc. These capital market instruments play important role nomy under the present scenario of Many Many reform reform Thakur, P. C. and J. Raghakardar Pal Singh, Reflections on the Changing Scenario of the ve been taken by the government of India Presently, Indian capital market is not only for Indian investors. It facilitates the internationalization of Indian economy by linking it with rest of the world. The lace of advance and vibrant capital market instruments can lead to under The Indian Journal of Conference Issue (2001), Vol. 54 No. Websites: 1.https://financeaccountingsimplified.com/tag/capita l-market-instruments/ 2.https://www.slideshare.net/kartikganga/capital market-instruments 3.https://www.slideshare.net/Nasaso90/capital market-instrument 4.https://www.slideshare.net/.../instruments money-market-and-capital 5.https://www.businessmenmanagementideas.com 6.www.swlearning.com/finance/burton/fmi/powerpo int/ch03.ppt 7.www.inc.com/encyclopedia 8.www.martinfowler.com 9.www.financenectar.com/capital instruments-in-india/ 10.www.lexicon.ft.com 11.www.anilrazb.worldpress.com 12.www.wikipedia.org 13.www.businessjargons.com www.businessjargons.com https://financeaccountingsimplified.com/tag/capita The above list of is not exhaustive but inclusive. Other instruments may be created with the approval of capital market regulator depending upon the requirement of the economy and industry. https://www.slideshare.net/kartikganga/capital- https://www.slideshare.net/Nasaso90/capital- https://www.slideshare.net/.../instruments-of- capital-market Gupta Arindam (2002), Institutions, Book https://www.businessmenmanagementideas.com www.swlearning.com/finance/burton/fmi/powerpo the Financial System Institutions, Services and Regulation, PHI in India: Markets, Markets, Instruments, Instruments, www.inc.com/encyclopedia Bhaskara, P. Vijaya & Mahapatra, B. (2003), Derivatives Simplified: An Introduction to Risk Management, Sage Publication, New Delhi www.financenectar.com/capital-market- K. and Kapoor. G. K. (2005), Students’ Guide To Company Law, Taxmann b.worldpress.com @ IJTSRD | Available Online @ www.ijtsrd.com www.ijtsrd.com | Volume – 2 | Issue – 6 | Sep-Oct 2018 Oct 2018 Page: 466