Question

2. a) List five participants in the financial system and explain .

b) Difference between stock exchange and over the counter.

c) Problems SME face and the solutions.

Answer 1

A. five participants in the financial system

. Banks:

Banks take part in the capital market and currency showcase. Inside the capital market, banks take dynamic part in security markets. Banks may put resources into value and common assets as a piece of their store the executives. Banks take dynamic exchanging premium the security advertise and have certain exposures to the value showcase too. Banks additionally partake in the market as clearing houses.

2. Primary Dealers (PDs):

PDs bargain in government protections both in primary and optional markets. Their fundamental duty is to give two-way statements and go about as market creators for government protections and strengthen the government protections showcase.

3. Financial Institutions (FIs):

FIs give/loan long haul assets for industry and agribusiness. FIs raise their assets through long haul bonds from financial framework and borrowings from worldwide financial institutions like International Finance Corporation (IFC), Asian Development Bank (ADB) Inter­national Development Association (IDA), International Bank for Reconstruction and Development (IBRD), and so on.

4. Stock Exchanges:

A Stock exchange is properly endorsed by the Regulators to give deal and acquisition of protections by "open cry" or "on-line" for the benefit of financial specialists through brokers. The stock exchanges give clearing house offices to mesh of pay­ments and protections conveyance. Such clearing houses ensure all installments and conveyances. Protections exchanged stock exchanges incorporate values, obligation, and subsidiaries.

5. Brokers:

Just brokers endorsed by Capital Market Regula­tor can work on stock exchange. Brokers play out the activity of intermediating among purchasers and merchant of protections. They help develop request book, value discovery, and are liable for an agreement being respected. For their administrations brokers gain an expense known as financier.

6. Investment Bankers (Merchant Bankers):

These are agen­cies/associations managed and authorized by SEBI, the Capital Markets Regulator. They organize raising of assets through value and obligation course and help organizations in finishing different for­malities like recording of the recommended archive and other compli­ances with the Regulator and Regulators.

They exhort the giving organization on book building, evaluating of issue, masterminding recorders, bankers to the issue and other help administrations. They can under­write the issue and furthermore work as issue chiefs. They may likewise purchase and sell for them.

B. Difference between stock exchange and over the counter.

Over-the-counter (OTC) or off-exchange exchanging is done straightforwardly between two gatherings, without the oversight of an exchange. It is stood out from exchange exchanging, which happens through exchanges. A stock exchange has the advantage of encouraging liquidity, giving straightforwardness, and keeping up the present market cost.

C. Issues SME face and the arrangements.

Pulling in new clients

This is an issue that such a significant number of organizations battle with, and this incorporates the huge players as well. In any case, bigger organizations with notable accomplishment behind them ordinarily think that its simpler to pull in new clients as they have a solid brand supporting them.

Shrewd marking is immensely significant and with it comes more noteworthy acknowledgment, expanded business esteem and the capacity to create new clients at a quicker pace. Drawing in new clients while keeping up a top notch administration with existing clients can be dubious, however it's imperative so as to prevail in a serious market.

Star movement is additionally urgent for any private company. This implies making calls, going to pertinent systems administration occasions and acing the different showcasing channels that your business has a nearness on.

Looking after benefit

Regardless of what industry a business works in, keeping up benefit is a test which each business has needed to consider sooner or later. In any case, there are various things that can help:

Lessen costs

Increment turnover

Increment profitability and effectiveness

Organizations ought to be taking a gander at their providers, premises, creation procedures and account offices as the ones that were a solid match a year or two prior may never again be the best arrangement.

Presenting activities, for example, remote working may empower a business to scale back and spare overhead expenses, simultaneously as boosting worker effectiveness.

Holding significant workers

Thankfulness goes far. An inability to show the value of representatives and the work they do could prompt a business losing a portion of its most significant resources. Truth be told, ongoing exploration found that half of representatives would leave a position on the off chance that they didn't feel increased in value.

It's likewise essential to recollect that compensation is a major factor in workers feeling esteemed. As a business and its benefits develop, so should the compensation of its workers. These are the individuals who are driving the business forward and its prosperity or disappointment depends intensely on how they perform. While paying representatives more may cost a business temporarily, the effect of remunerating them will enable a business to get more cash-flow over the long haul.

Making sure about fund

Despite the fact that business loaning is currently undeniably more open than in earlier years, getting to back is as yet a worry. Numerous SMEs are dismissed by their high road bank, however recall this isn't the main alternative. Elective moneylenders are there to help and come without the run of the mill "check box" attitude, which means they can give adaptable and redid subsidizing arrangements. Whether a business is searching for a transient business advance or progressively adaptable credit with a more extended term, there's an expansive scope of subsidizing alternatives accessible.

Expanding Revenue

It's regular information that each business battles to drive, keep up and continue development.

While it's inconceivable for organizations to control all the market powers they're facing, there are various activities that can help increment income. For instance, if a business is working inside a market that is too little to even think about generating the ideal benefit, offering extra items or administrations to build individuals' enthusiasm for the business may be an interesting point.

Organizations may likewise need to consider modifying their valuing technique, particularly on the off chance that they are confronting savage market rivalry. Cost is frequently the most significant factor in any buy for buyers and it is a troublesome parity to strike. While dropping costs a lot of can hurt a brand, raising them by a perceptible sum could likewise cause a negative response and urge clients to take a gander at contenders. The best way to deal with changing your costs is by doing it continuously as slight value modifications are dominatingly overlooked by buyers.

Embracing technology

While most organizations have invited mechanical progressions of the previous hardly any decades, there are others who have covered their heads in the sand. Technology assumes a key job in business and there are currently programming and applications accessible to make things simpler and easier for entrepreneurs and to mitigate a portion of the difficulties they may consistently confront. A portion of these incorporate bookkeeping programming bundles, showcasing apparatuses to help appropriate month to month pamphlets and undertaking the executives instruments.

Social media

A slip-up numerous organizations make is imagining that they have an online nearness since they have a site. There is a lot more to be done past this and keeping in mind that a site was a fundamental 10 years back for any business genuine about being fruitful, social media has demonstrated to be an incredible asset in assisting with expanding brand presentation.

Having an online nearness implies that organizations can connect with a far bigger crowd, which could build benefits on the off chance that they're ready to catch the consideration of the segment they need to purchase their items and administrations. Brand mindfulness ought to be a need for all organizations and the most ideal approach to accomplish this is by being available, useful and steady.

Every single self-starter and business people will without a doubt concur that beginning a business is hard and keeping in mind that the SME scene is plainly a serious one, in light of this, organizations should have confidence that there is help close by