This new edition continues to offer the readers, a complete understanding of the functioning of the whole set of banking and non-banking institutions as well as all the markets for short-term and long-term financial instruments and financial services. It discusses in detail, the major issues in financial system in India, concept of financial inclusion, New Pension System in India, principles of insurance, auction process of treasury bills, FDI in retail sector in India and so on. It also offers a detailed discussion on derivatives, derivative instruments in the global economy, market design for derivatives, major policy developments and data on the development of derivatives market in India as well as across the globe. It places significant emphasis on recent financial reforms as updates reflecting the most current financial developments, changes, and trends in the financial industry, especially in India.

PART 1: AN OVERVIEW Chapter 1.The Nature and Role of Financial System Chapter 2.An Introduction to Security Analysis Chapter 3. An Overview of the Indian Financial System Chapter 4. Financial Sector Reforms PART 2: REGULATORY AND PROMOTIONAL INSTITUTIONS Chapter 5. Regulations in Financial Markets in India Chapter 6. The Reserve Bank of India Chapter 7. Other Regulatory Bodies in India: SEBI, IDRA and PFRDA PART 3: BANKING INSTITUTIONS Chapter 8. Commercial Banks Chapter 9. Co-operative Banks PART 4: NON-BANK FINANCIAL INTERMEDIARIES AND STATUTORY FINANCIAL ORGANISATIONS Chapter 10. Small Saving, Provident Funds, and Pension Funds Chapter 11. Insurance Companies Chapter 12. Unit Trust of India and Mutual Funds Chapter 13. Miscellaneous Non-Bank Financial Intermediaries Chapter 14. Non-Bank Statutory Financial Organisations PART 5: MARKETS Chapter 15: Call Money Market Chapter 16 : Treasury Bills Market Chapter 17. Miscellaneous Short-term Financial Markets Chapter 18. Debt Market Chapter 19. Stock Market Chapter 20. Derivatives Market PART 6: INTERNATIONAL DIMENSIONS OF FINANCIAL MARKETS Chapter 21. Foreign Exchange Market Chapter 22. Foreign Capital Flows PART 7: INTEREST RATES Chapter 23. Theories of the Level and Structure of Interest Rates Chapter 24. Interest Rates in India