Indian Financial System.
Singh, Kanhaiya
Indian Financial System, (7th ed.), MY Khan, Tata Mc Graw Hill
Education Private Limited, New Delhi, 2011, Pages 809.
The financial system of a country has three important pillars viz.
financial markets, financial intermediaries and financial instruments.
The strength and depth of these pillars indicate the soundness of
financial system. It is better to have a clear understanding about the
whole concept and inter-relationship of these pillars by the concerned,
be it management students, academicians, policy makers, consultants or
other related groups. This becomes more significant in today's
changing context where structural developments across the globe are
taking dynamic shape. Even in Indian context, there have been rapid
changes in the financial policy framework, operational mechanism and
financial delivery system in the last two decades.
This book on Indian Financial System by Khan broadly covers the
related issues on various aspects of the subject. The contents of the
book are divided in to five parts viz. the conceptual framework of
financial system in an economy in general and India in particular,
Financial Markets, financial intermediaries, Capital Market instruments
and foreign investments in India. In the present edition, the author has
added certain regulatory measures and RBI policy guidelines on Small and
Medium Enterprises (SMEs), prudential norms for banks and financial
institutions, Securitisation act, regulatory framework of investment
companies, IRDA regulations etc. Apart from this, there is an addition
of a new chapter on Foreign direct investment. All these additions
provide useful information on various topics and enhance the utility of
the book.
Though part one of the book discusses various functional and
operational aspects of the financial system and phase wise growth, it
would have also shown relationship between various segments and
indictors of financial growth of a Country. Part two of the book
explains the organizational structure and regulatory aspects of
operations of Capital markets and Money markets. This section provides
useful information on various activities relating to primary issues,
listing regulations, SEBI guidelines and other regulatory aspects
relating to debt securities also. One chapter of this section is devoted
to secondary market operations which explains various services and
activities conducted at the stock exchanges. One exclusive chapter of
this section describes the money market operations and regulatory role
of the Reserve Bank of India.
Part three of the book deals with role of financial intermediaries
which basically covers banks, non-banking financial companies, mutual
funds and insurance sector. It explains in detail the prudential norms
set for banks, capital adequacy provisions, risk management strategies
in banks, debt recovery forums etc. Various regulatory aspects relating
to non banking financial companies are described in one of the exclusive
chapter in this section. Various guidelines issued by SEBI for
monitoring and control of mutual fund operations and various products of
mutual funds have also been explained in this section. The last chapter
of this section deals with regulatory aspects of the insurance
organizations.
Part four is devoted to various instruments and their features
relating to Capital Markets. It explains equity, debt and derivative
instruments. Part five of the book describes various policy related
issues of foreign direct investment i.e. mode of entry, entry
conditions, reporting etc. The last chapter of the book explains the
other modes of investments such as foreign equity, external commercial
borrowings, foreign bonds, foreign institutional investments etc.
In all, the book provides exhaustive information on policy and
related issues of financial system in India. Inclusion of certain
practical aspects of financial system and application of various
financial system tools in the forthcoming issue will certainly add value
to the book.
Kanhaiya Singh
Professor
FORE School of Management
