At the core of India's economy is the financial market, which plays a vital role in helping the reallocation of resources to where it is most required. All these markets are divided into four major parts, each intended for a different purpose. Let's look at these segments below.

Money Markets

This category represents a platform for spot or short-term credit and loan marketplace, with the duration for such transactions being concluded within one year. This comprises instruments like Treasury Bills, Commercial Papers, and certificates of deposit, that help businesses and governments realize their financial agility and efficiency in their action.

Capital Markets

This is where companies go to raise large amounts of money for large projects. They accomplish this through stocks, bonds, and initial public offerings (IPOs). Important market players in such exchanges, like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), make the transaction more transparent and reliable.

Forex Markets

This segment is about currency exchange. Forex plays an imperative role in supporting international trade and investment. This sector is overseen by the Reserve Bank of India, which ensures its stability and effectiveness.

Derivatives Markets

The derivatives market plays a crucial role in risk management as well as speculation about future asset prices. It offers derivatives like futures and options, allowing investors to hedge against risk or to exploit value opportunities.

With technology widely in development and regulatory frameworks becoming increasingly progressive, India's financial markets experience an unprecedented change. They are rising as a very significant force in the country's economic landscape, with a good deal still to be explored.

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