From the above
chart we can observe that Indian capital market is mainly divided into two -Organized
and Unorganized. Under organized we have money lenders and indigenous bankers.
In the organized sector we have a host of agencies and systems, security market
under which there are new issues and further government bonds and corporate
securities. Then there is stock market under which again government bonds and
corporate securities and under corporate securities there are again bonds and
shares. In addition to these under organized sector there are banks and non-banking
financial institution exclusively engaged in capital financing. The organized
sector is under the direct control of reserve bank of India. The role of major
financial institution in India
Industrial Finance Corporation of India (IFCI)
Industrial Finance
Corporation of India Ltd. (IFCI), the first development finance institution was
set up in 1948 under the IFCI Act to pioneer long-term institutional credit to
medium and large industries. With a view to achieving greater operational
flexibility and access to capital market, the undertaking of IFCI was
transferred to and vested in a new company called Industrial Finance
Corporation of India Ltd. (since renamed as IFCI Ltd.) with effect from July 1,
1993. IFCI provides financial assistance to industry by way of rupee and
foreign currency loans, underwriting/direct subscription to shares and
debentures and guarantees, equipment finance, buyers’ and suppliers’ credit,
equipment leasing and finance to leasing and hire-purchase companies. Over the
years, it has diversified its activities by setting up several subsidiaries. In
tandem with changing business conditions and environment, the wholly-owned
subsidiaries viz. IFCI Custodial Services and IFCI Investors Services Ltd.
