 of viewers in the session we will discuss about money market. Money market is a market for short term funds. It deals with financial assets and securities which have a majority period ranging from a single day up to a year. It is a wholesale debt market for low risk, high liquid short term instruments. Money market is dominated mostly by governments, banks and financial institution. Now we are going to discuss about the characteristics of money market. Money market is a market for short term financial assets that are close substitute of money. It is a wholesale market for short term debt instruments. It is not a single market but a collection of markets for several instruments. It facilitates effective implementation of monetary policy of a central bank of a country. Transactions are made without the help of brokers. Here in money markets it establishes the link between the central bank and the other banks. It is basically an over the phone market. Money market is basically over the phone market. The players in the money market are central banks of the country. In the case of India there will be a central bank. In the case of other countries like USA there are several central banks. So I have mentioned central banks. Governments, commercial banks, brokers and other companies organizations relating to short term funds. Now we will discuss the functions of money market. As I have mentioned earlier money market plays a vital role in the economy. The first function of money market is it facilitating adjustment of liquidity position of commercial banks, business undertakings and other non banking financial institutions. It enabling the central bank to influence and regulate liquidity in the economy through its intervention in the market. Money market providing a reasonable access to users of short term funds to meet their requirements quickly at reasonable cost. Money market is providing short term funds to the government institutions. It enabling businessmen to invest their temporary surplus funds for short period. It facilitating flow of funds to the most important users and serving as a coordinator between borrowers and lender of short term funds. Lastly it is helping in promoting liquidity and safety of the financial assets. The instruments which are traded in money market. There are so many instruments traded in money markets. First of all call and short notice money, then commercial bills, treasury bills, certificates of deposit, commercial papers, repurchase agreements, money market mutual funds, depository receipts like American depository receipts, global depository receipts etc. Now we have to know about the components or composition of money market. In the money market there are several sub markets namely number one call money market, number two commercial bill market, number three treasury bill market, then certificates of deposit market, then commercial paper market, acceptance market and collateral loan market. Now we are going to discuss the characteristics of a developed money market. A developed money market has various characteristics, number one it has highly developed commercial banking system. Commercial banks are the nerve center of the whole short term funds. They serve as a vital link between the central bank and the various segments of the money market. When the commercial banking system is developed or organized the money market will be developed. The next characteristic of developed money market is presence of a strong central bank. In a developed money market there is always a central bank. The central bank is necessary for direction and control of money market. Central bank absorbs surplus cash during obsessions and provides additional funds in the busy seasons. This is done through open market operations. Being the bankers bank central bank keeps the reserves of commercial banks and provides them financial accommodation in times of need. It is said that without the support of a central bank a money market cannot be functional. The next one is existence of sub markets. Money market is a group of various sub markets as I mentioned earlier. Each sub market deals in instruments of various majorities. There should be a large number of sub markets. The larger the number of sub markets the broader and more developed will be the structure of money market. Besides the sub market must be interrelated and integrated with each other. If there is no coordination and integration among them different interest rates will prevail in the sub markets. The next characteristic of developed money market is availability of credit instruments. The continuous availability of readily acceptable, negotiable securities that is near money assets is necessary for the existence of a developed money market. In addition to a variety of instruments or securities there should be a number of dealers that is participants in the money market to transact these securities. Next one is existence of secondary market. There should be an active secondary market in these credit instruments. The success of money market always depends on the secondary market. If the secondary market develops then there will be an active trading of the instruments. The next characteristic is availability of ample resources. There must be availability of sufficient funds to finance transactions in the sub markets. These funds may come from within the country and outside the country. Under developed money markets do not have ample funds thus availability of sufficient funds is essential for the smooth and efficient functioning of the money market. The next characteristic is demand and supply of funds. Money markets should have a large demand and supply for funds. This depends upon the number of participants and also the government policies in encouraging the investments in various sectors and monetary policy of the central banks. And the last characteristic is some other factors. It includes industrial development, volume of international trade, policy stability, trade cycles, foreign investment, price stabilization, etc. These factors also influence the money market. Money market can be designed in a diagram. The structure of money market can be designed in a diagram. We will provide those diagrams in the slide. Now we will discuss about the participants of Indian money market. We are going to Indian money market. In Indian money market the participants are first of all number one governments either state or central governments. Next is the Reserve Bank of India, the central bank. Next commercial banks, cooperative banks, financial institutions like IFCI, IDBI, ICICI, SIDBI, UTI, LIC, etc. Discount and Finance House of India, various brokers, mutual funds, public sector undertakings, cooperative units, etc. Now we will have to know about the characteristics of Indian money market. Indian money market have some specific characteristics. First of all number one characteristic is existence of unorganized segment. Organized sector consist of RBI, commercial banks and financial institutions, etc. The unorganized sector consist of indigenous bankers, money lenders, SID funds, NIDIS, etc. In India we have this unorganized sector which is special characteristic of Indian money market. The RBI does not have the control over the unorganized sector and they do not follow the rules and regulations of the RBI. The next seasonal scarcity of credit. Another important characteristics of Indian money market is the seasonal scarcity of loanable funds and the consequent high rates of interest during the busy season. But in the off season banks have surplus funds so they are eager to learn more and more and often reduce the rates of interest. The next characteristics of Indian money market is lack of integration. Indian money market has several segments but the segments are not connected with one another. Each part of the money market such as RBI, SBI subsidiaries, foreign exchange banks, cooperative banks and indigenous banks carry on a particular type of banking business or provide a specific type of financial services. Each financial institution acts independently. The next characteristic is the absence of bill market. The existence of an organized bill market is essential for linking various credit agreements with the RBI in an effective manner. No doubt there is a treasury bill market in India but the commercial bill market has not been fully developed. In 1970 the RBI introduced a bill market scheme known as new bill market scheme under which the RBI re-discounted genuine trade bills. The next characteristic is volatile call money market. The interbank call money market is the market for short term funds known as money at call and short notice. The borrowing rate in this market is known as the call money rate. This rate is determined by the market forces that is by the forces of demand and supply. The demand or short term funds organizes originates from all types of banks, nationalized, private or foreign. Most banks bankers are either borrowers or lenders but most banks acts as both. Now we shall have to look into the defects of Indian money market. There are so many defects in the case of Indian money market. First of all existence of unorganized segment is a great defect in Indian money market. Then lack of integration, disparities in interest rates, seasonal diversity of money market, absence of organized bill market, shortage of funds, ineducate banking facilities, inefficient and corrupt management, limited instruments, limited number of participants and no contact with foreign money markets are the other defects of Indian money market.