SANDESH ASSIGENMENT

8/7/2019 SANDESH ASSIGENMENT

1/10

DEVELOPMENT OF FINANCIAL INSTITUTIONAFTER 1951 TO PRELIBRLIZATION PERIOD IN

CONTEXT OF ECONOMIC DEVELOPMENT

SUBMITTED BY:

SANDESH L. NAGDEVATE

SUBMITTED TO

MAHESH JOSHI


2/10

Indian Financial System

An Overview

An efficient ,articulate and developed financial system isindispensible for the rapid economic growth of any country / economy.The process of economic development is invariably accompanied by a

corresponding and parallel growth of financial system .Planed economicdevelopment in India had greatly influenced the course of financialdevelopment.

The evolution of the Indian Financial system falls into Threedistinct phases. These are :

PRE 1951 1951 TO MID -EIGHTEES (PRE LIBERLIZATION ERA) AFTERTHE EARLY NINETEES


3/10

PHASE II : 1951 TO MID EIGHTIES

The organization of the Indian Financial System during the post -1951period evolved in response to the imperatives of planned economic

development. In pursuance of the broad economic and social aims of theState to secure economic growth with social justice as enshrined in theIndian Constitution , under the Directive Principles State policy , theschemes of planed economic development was initiated in 1951..


4/10

The Phase II organization of the Indian Financial System Is shown

in Exhibit 1

Indian Financial System

Public/Gove.OwnershipFFinancialInstitution

Fortification OfInstitutional

Structure

InvestorsProtection

ParticipationofFinancial Inst. In

Corporate

Management


5/10

Public Ownership Of Financial Institution:

The evolution of the financial system in India during this phase was theprogressive transfer of its important constituents from private ownershipto public control.NAT

IONAL

IZAT

ION

:

Reserve Bank ofIndia(RBI)-1949 State Bank ofIndia(SBI)-1956 245 life insurance companies were nationalized & merged into the

state-owned monolithic life insurance corporation of India(LIC)-

1956 General Insurance Corporation(GIC)-1972

NEWINSTITUTIONS:

DFIs(DevelopmentFinancial Institutions)

UTI (Unit Trust O India)


6/10

FORTIFICATION OF INSTITUTIONAL STRUCTURE :

DFIs :

IFCISFCsICICIIDBISIDCs

SIICsIIBI

BANKS :

Diversification of

Forms of Financing

Enlargement of

Functional Coverage

Innovative Banking

L IC UTI


7/10

INVESTORS PROTECTION :

The extent to which savings can be mobilized for industrial investmentdepends, apart from the development of specific financial facilities , on

the confidence of the investing public in industrial securities which inturn , is dependant on safeguards and protection available to them.

The important elements of the legislative code adopted by thegovernment are as follows:

Companies ACT Capital Issues (Control)ACT Securities Contracts(Regulation) ACT Monopolies and Restrictive ACT Foreign Exchange Regulation ACT


8/10

PARTICIPATION BY FINANCIAL INSTTUTIONS IN CORPORATEMNAGEMENT :

A development of considerable significance in the Indian financial

system in this phase of its evolution was the participation of financialinstitutions in management of the assisted concerns. The role ofinstitutional finance for industry shifted its focus from the problems ofsupply of finance to the impact of the institutional operations on thecorporate structure in India.


9/10

BIBLIOGRAPHYy IndianFinancial System-M.Y. KHAN

y www.google.co.in


10/10

THANK YOU

SANDESH ASSIGENMENT

Documents

Transcript of SANDESH ASSIGENMENT