Classification on the basis of Structure of Market
Financial markets may be classified into unorganised markets and organised
markets on the basis of structure.
Unorganised Markets
There are a number of moneylenders, indigenous bankers, local traders, etc
who lend money to the public and collect deposits from the public. There are als
private finance companies, chit funds, etc., who are very active especially in rural
areas. These people or players are not controlled by the RBI. They don’t have &
formal structure of organisation. Recently RBI has introduced several measures to
bring this unorganised sector into the organised one.
Organised Markets
Standard rules, regulations and statutes for governing the financial dealing
are there in organised markets. High degree of institutionalisation and innovative
instruments are seen in organised markets. All aspects of organised markets are
regulated by regulatory bodies like RBI, SEBI, etc. There is no room for ambiguity
or confusion or manipulation in these markets due to the strict supervision and
control by the regulators.
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