1. Money Market

The money market is a market for short-term debt instruments, typically with a maturity of less than one year. It facilitates the management of temporary cash surpluses and shortages for businesses, banks, and governments. Instruments like Treasury Bills, Commercial Papers, and Certificates of Deposit are traded in the money market, playing a crucial role in liquidity management for the Indian financial system.

2. Capital Market

The capital market deals with long-term finance. It comprises the stock market (where shares are traded) and the bond market (where debt instruments are traded). Capital markets enable companies to raise long-term funds for investment and expansion, and they provide avenues for investors to participate in economic growth.

3. Stock Exchange

A stock exchange is a marketplace where shares of publicly traded companies are bought and sold. It provides liquidity for investors and a mechanism for companies to raise capital. Exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India are vital for price discovery, corporate governance, and the efficient functioning of the capital market.

4. Securities and Exchange Board of India (SEBI)

The Securities and Exchange Board of India (SEBI) is the primary regulatory body for the securities market in India. It regulates stock exchanges, intermediaries, and new issues to protect investors, promote market development, and ensure fair trade practices. SEBI plays a critical role in maintaining investor confidence and the integrity of the financial markets.