Q.Who are the constituents of a financial market? Explain briefly.

A financial market functions through several distinct groups of participants, each with a different role, not through a single institution. …

1. Regulators — RBI regulates banking and the money market; SEBI (under the SEBI Act, 1992) regulates the capital market, protecting investors and ensuring fair, orderly trading.
2. Intermediaries — commercial banks, stock brokers, merchant bankers, underwriters, depositories, credit rating agencies, and mutual funds, all of whom stand between savers and borrowers and make the transfer of funds efficient.
3. Savers/Investors (fund-surplus units) — households, corporate bodies, and institutions willing to invest their surplus funds for an expected return.
4. Borrowers/Issuers (fund-deficit units) — businesses and government bodies who raise funds by issuing financial instruments to the public. …

Listing only "buyers and sellers" and leaving out regulators and intermediaries, who are just as essential to …