Capital Market Institutions in Pakistan

  • Stock and Commodity Exchange.
  • Intermediaries Brokerage Industry.
  • Mutual Funds Industry of Pakistan.
  • Central Depository Company of Pakistan.
  • National Clearing Company of Pakistan.
  • Regulatory Framework for Capital Markets.
  • Market Operations.
  • Bond Trading.

What is money market instrument in Pakistan?

The Treasury bills, repurchase agreements, commercial papers etc. are the examples of money market instrument.

What are common instruments of money market?

These instruments serve a dual purpose of not only allowing borrowers meet their short-term requirements but also provide easy liquidity to lenders. Some of the common money market instruments include Banker’s Acceptance, Treasury Bills, Repurchase Agreements, Certificate of Deposits and Commercial Papers.

What is the main use for capital market instruments?

Capital market instruments primary role: It allows transfer of funds from people who have surplus money or seek higher returns for an investment in companies. The primary role of the capital market is as follows: The capital market enables the transfer of funds from entities with surplus funds to those who require it.

What are the distinguish feature of money market and capital market What are the instruments in both markets traded in Pakistan?

The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a year. The capital market encompasses the trade in both stocks and bonds.

What are capital market instruments?

Ans.: Instruments in capital markets can be classified into three categories: Pure, Hybrid and Derivatives. (1) Pure Instruments : Equity shares, preference shares, debentures and bonds which are issued with the basic characteristics without mixing the features of other instruments are called pure instrument.

What is Islamic capital market instrument?

Sukuk is the financial instrument which is considered to be the icon of the Islamic finance now.

What are the examples of capital market instruments?

Debt Securities can be classified into bonds and debentures:

  • Bonds:
  • Debentures:
  • Derivatives:
  • Exchange-Traded Funds:
  • Foreign Exchange Instruments:

What is money market instrument?

Money market instruments are short-term financing instruments aiming to increase the financial liquidity of businesses. The money market and its instruments are usually traded over the counter, and therefore, cannot be done by standalone individual investors themselves.