Capital Market Intermediaries

CAPITAL MARKET INTERMEDIARIES
STOCK BROKERS
MERCHANT BANKERS UNDERWRITERS
DEPOSITORY REGISTERER &

PARTICIPTANT TRANSFER AGENT.
INTERMEDIARIES
PUBLIC CAPITAL MARKETS
PORTFOLIO INTERMEDIARIES FINANCIERS

MANAGERS
MUTUAL FUNDS CREDIT RESEARCH VENTURE CAPTAL

AGENCY
 Firm or person (such as a broker or consultant)
who acts as a mediator on a link
between parties to a business deal, investment
decision, negotiation, etc. In money markets, for
example, banks act as intermediaries between
depositors seeking interest
income and borrowers seeking debt capital.
Intermediaries usually specialize in specific
areas, and serve as a conduit for market and
other types of information.
Also called a middleman. See
also intermediation.
 Intermediaries are service providers in
the market, including stock brokers, sub-
brokers, financiers, merchant
bankers, underwriters, depository
participants, registrar and transfer
agents, FIIs/ sub accounts, mutual
Funds, venture capital funds, portfolio
managers, custodians, etc
A stockbroker is a regulated professional
individual, usually associated with
a brokerage form firm or broker-dealer,
who buys and sells stocks and other
securities for both retail and institutional
clients, through a stock exchange or over
the counter, in return for
a fee or commission. Stockbrokers are
known by numerous professional
designations, depending on the license
they hold, the type of securities they sell,
or the services they provide.
 is a person OR a business entity who makes their
money from investments, typically involving
large sums of money and usually
involving private equity and venture
capital, leveraged buyouts, corporate
finance, investment banking and/or large-
scale asset management.
 A financier makes money through this process
when his or her investment is paid back with
interest, from part of the
company's equity awarded to them as specified
by the business deal, or a financier can generate
income through commission, performance, and
management fees
 A merchant bank is a financial institution that
provides capital to companies in the form
of share ownership instead of loans. A merchant
bank also provides advisory on corporate matters
to the firms they lend to.
 Both commercial banks and investment
banks may engage in merchant banking
activities. Historically, merchant banks' original
purpose was to facilitate and/or finance
production and trade of commodities, hence the
name "merchant". Few banks today restrict their
activities to such a narrow scope.
A company or other entity that
administers the public issuance and
distribution of securities from a
corporation or other issuing body. An
underwriter works closely with the issuing
body to determine the offering price of
the securities, buys them from the issuer
and sells them to investors via the
underwriter's distribution network
 EX- MB and syndicate members.
 Depository system introduced in India in the year
1996.
 In India, a Depository Participant (DP) is
described as an agent of the depository. They are
the intermediaries between the depository and
the investors. The relationship between the DPs
and the depository is governed by an agreement
made between the two under the Depositories
Act.
 Service provided-
Dematerialization, Rematerialization, Transfers
of securities, settlement of trades.
 In india- NSDL & CDSL are the two entity.
 Registrar are the trusts or institutions that
register and maintain detailed records of the
transactions of investors for the convenience
of mutual fund houses.
 Registrar or transfer agents are the trusts or
institutions that register and maintain
detailed records of the transactions of
investors for the convenience of mutual fund
houses.
A mutual fund is a type of professionally
managed collective investment scheme that
pools money from many investors to
purchase securities. While there is no legal
definition of the term "mutual fund", it is
most commonly applied only to those
collective investment vehicles that are
regulated and sold to the general public.
They are sometimes referred to as
"investment companies" or "registered
investment companies. Most mutual funds
are "open-ended," meaning investors can buy
or sell shares of the fund at any time
 Venture capital (VC) is financial capital provided
to early-stage, high-potential, high
risk, growth start-up companies. The venture
capital fund makes money by owning equity in
the companies it invests in. The typical venture
capital investment occurs after the seed
funding round as the first round of institutional
capital to fund growth (also referred to as Series
A round) in the interest of generating a return
through an eventual realization event, such as
an IPO or trade sale of the company. Venture
capital is a subset of private equity.
Therefore, all venture capital is private
equity, but not all private equity is venture
 A portfolio manager is either a person who
makes investment decisions using money other people
have placed under his or her control or a person who
manages a financial institution's asset and liability (loan
and deposit) portfolios. On the investments side, they
work with a team of analysts and researchers, and are
ultimately responsible for establishing an
investment strategy,
 Portfolio managers are presented with investment ideas
from internal buy-side analysts and sell-side analysts
from investment banks. It is their job to sift through the
relevant information and use their judgment to buy and
sell securities. Throughout each day, they read
reports, talk to company managers and
monitor industry and economic trends looking for the right
company and time to invest the portfolio's capital.
A financial professional who has expertise
in evaluating the creditworthiness of
individuals and businesses. Credit analysts
determine the likelihood that a borrower
will be able to meet financial obligations
and pay back a loan, often by reviewing
the borrower's financial history and
determining whether market conditions
will be conducive to repayment.
 http://www.businessdictionary.com/definition/intermediary.htm
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CAPITAL MARKET INTERMEDIARIES

DEPOSITORY REGISTERER &

PUBLIC CAPITAL MARKETS

PORTFOLIO INTERMEDIARIES FINANCIERS

MUTUAL FUNDS CREDIT RESEARCH VENTURE CAPTAL

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