Role of state bank of india in the money market of india

Abstract

The investors numbering millions constitute the backbone of the Indian Money Market. Their involvement in the Money Market helps to mobilize sufficient funds required for development and ensures liquidity of investment in the Money Market. This necessitates ensuring confidence in the minds of investors about the Money market investment. But the investors are experiencing a number of grievances from different market participants. Their widespread geographical distribution, unorganized nature and lack of awareness about Money Market investment have instigated unscrupulous market participants to exploit them. The introduction of market reforms like dematerialization and rolling settlement and the establishment of market regulators like SEBI has helped to reduce the scope of grievances to a certain extent. But the number of complaints of investors goes on increasing. If this trend continues it will seriously impair the confidence of the investors, which may lead to their massive withdrawal from the Money Market. This will adversely affect the mobilisation of resources through Money Market by public and private sector, which may ultimately affect the development of Money Market of the country. newline