The document discusses the primary market, which refers to the initial market for new security offerings. It involves three main participants: issuers like corporations and governments who issue new securities, intermediaries like merchant bankers and stock exchanges that facilitate the issuance and trading, and investors both individual and institutional who purchase the newly issued securities. The primary market allows for mobilization of savings, investment in new projects, entrepreneurship growth, and overall economic development.

1. participants in primary
market

2. Primary Market
o Financial Market
o Primary Market – Meaning
o features
o players
o instruments

3. Financial Market
 A market is an institution or arrangement that facilitates the
purchase and sale of goods and services
 Financial market is an institution or an arrangement that
facilitates the exchange of financial instruments.
 “It is a place where people and organizations wanting to borrow
money are brought together with those having surplus funds”
 It may or may not have a particular physical existence.

4. Role of Financial Market in Economic
Development
 Savings Mobilization
 Investment
 Entrepreneurship growth
 Industrial development
 National growth

5. Primary and Secondary Market
 The primary market is the market where the securities are
sold for the first time.
In a primary issue, the securities are issued by the
company directly to investors.
 In secondary market investors purchase
securities or assets from other investors, rather than from
issuing companies themselves. The national exchanges -
such as the BSE and NSE are secondary markets

6. Structure of Financial Market Financial

7. What We
Do Now?
Players in the Primary market
(The three I’s )
 Issuers
 Intermediaries
 Investors
• Individual Investors
• Corporate Investors; DIIs and FIIs
There are two main types of issuers namely
 Corporate's issue both debt and equity securities
 Government issue debt securities

8. Intermediaries in Primary Market
SEBI (As a regulator)
• Merchant Bankers/ Lead Managers
– Bankers to the Issue
– Registrars to the issue and Share Transfer agents
– Brokers and bankers to the issue
– Underwriters
– Debenture Trustees
• Credit rating agencies
• Depositories, depository participants
• Stock Exchanges
• Share Brokers

9. Advantages of Primary Market
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• Avenue of Investment
• Mobilization of savings
• Channelizing Savings for
Productive use
• Source of Large Supply of
Funds
• Rapid Industrial Growth
• Source for Expansion and
Technological Up gradation

10. Disadvantages of Primary Market
 Possibility for Deceiving Investors
 No fixed norms for project appraisal
 Lack of post-issue seriousness
 Ineffective role of merchant bankers
 Delay in allotment Process
 Poor mobilization of savings and hesitancy to
invest in shares

11. Thank You