A last-week revision sheet for capital markets and financial inclusion. Expect direction-and-status questions: who regulates, who bears risk, who can lend.

## Markets and Regulators

| Item | Fact |
|------|------|
| Money market | Up to one year; T-bills, CP, CD, call money; RBI |
| Capital market | Longer term; shares, bonds, debentures; SEBI |
| SEBI | 1988 (non-statutory) → SEBI Act, 1992; HQ Mumbai |
| Appeals | Securities Appellate Tribunal → Supreme Court |
| FMC | Merged with SEBI, September 2015 |
| IRDAI / PFRDA | Insurance (1999 Act) / pensions (2013 Act) |
| FSDC | 2010; chaired by the Finance Minister |

## Market Infrastructure

| Item | Fact |
|------|------|
| BSE | 1875; Asia's oldest; Sensex (30) |
| NSE | 1992; Nifty 50 |
| Depositories | Depositories Act, 1996; NSDL, CDSL |
| Settlement | T+1 completed January 2023 |

## Instruments

| Instrument | Key point |
|-----------|-----------|
| ADR / GDR | Indian companies' shares, issued abroad |
| IDR | Foreign companies' shares, issued in India |
| P-notes (ODIs) | Issued by FPIs to unregistered overseas investors |
| Masala bonds | Rupee-denominated, issued abroad; investor bears currency risk |
| Sovereign Green Bonds | First issued January 2023 |
| InvITs / REITs | SEBI regulations, 2014 |

## Financial Inclusion

| Item | Fact |
|------|------|
| Definition | Rangarajan Committee, 2008 |
| PMJDY | 28 August 2014 |
| JAM | Economic Survey 2014-15 |
| UPI | NPCI, 2016 |
| MUDRA | April 2015; SIDBI subsidiary; Shishu, Kishore, Tarun, Tarun Plus |
| Stand-Up India | April 2016; ₹10 lakh–₹1 crore; SC/ST and women; greenfield |
| PMJJBY / PMSBY / APY | May 2015; life / accident / pension |
| Payments bank | Deposits up to ₹2 lakh; no lending; Nachiket Mor Committee |
| Small finance bank | 75% priority sector lending |
| FI-Index | 2021; Access 35%, Usage 45%, Quality 20% |

{{< callout type="important" title="High-yield facts" >}}
- SEBI's mandate: protect investors, develop and regulate the securities market.
- Masala bonds shift currency risk to the foreign investor.
- Payments banks cannot lend; small finance banks can.
- In the FI-Index, usage carries the most weight.
{{< /callout >}}

{{< callout type="warning" title="Traps" >}}
- SEBI was not statutory until 1992.
- ADR/GDR are issued abroad; IDR is issued in India.
- MUDRA refinances; banks, NBFCs and MFIs lend.
- PMJJBY is life cover; PMSBY is accident cover.
{{< /callout >}}

## Related Topics

- [Capital Markets and SEBI](/economy/capital-markets-and-financial-inclusion/capital-markets-and-sebi/)
- [Financial Inclusion](/economy/capital-markets-and-financial-inclusion/financial-inclusion/)
- [Capital Markets and Financial Inclusion — practice questions](/economy/capital-markets-and-financial-inclusion/previous-year-questions/)
- [All quick revision sheets](/quick-revision/)

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Source: https://upscnotes.co/economy/capital-markets-and-financial-inclusion/quick-revision/

Indian Economy Capital Markets and Financial Inclusion GS Paper III

Capital Markets and Financial Inclusion — Quick Revision

One-page UPSC revision of money vs capital markets, SEBI, exchanges, depository receipts, masala and green bonds, PMJDY, MUDRA, social security schemes and niche banks.

SyllabusGS III · Mobilisation of resources — capital markets, financial sector regulation and financial inclusion

By UPSC Notes Editorial Team 2 min read Updated Oct 2026 #quick revision#economy#capital-markets

A last-week revision sheet for capital markets and financial inclusion. Expect direction-and-status questions: who regulates, who bears risk, who can lend.

Markets and Regulators

Item	Fact
Money market	Up to one year; T-bills, CP, CD, call money; RBI
Capital market	Longer term; shares, bonds, debentures; SEBI
SEBI	1988 (non-statutory) → SEBI Act, 1992; HQ Mumbai
Appeals	Securities Appellate Tribunal → Supreme Court
FMC	Merged with SEBI, September 2015
IRDAI / PFRDA	Insurance (1999 Act) / pensions (2013 Act)
FSDC	2010; chaired by the Finance Minister

Market Infrastructure

Item	Fact
BSE	1875; Asia’s oldest; Sensex (30)
NSE	1992; Nifty 50
Depositories	Depositories Act, 1996; NSDL, CDSL
Settlement	T+1 completed January 2023

Instruments

Instrument	Key point
ADR / GDR	Indian companies’ shares, issued abroad
IDR	Foreign companies’ shares, issued in India
P-notes (ODIs)	Issued by FPIs to unregistered overseas investors
Masala bonds	Rupee-denominated, issued abroad; investor bears currency risk
Sovereign Green Bonds	First issued January 2023
InvITs / REITs	SEBI regulations, 2014

Financial Inclusion

Item	Fact
Definition	Rangarajan Committee, 2008
PMJDY	28 August 2014
JAM	Economic Survey 2014-15
UPI	NPCI, 2016
MUDRA	April 2015; SIDBI subsidiary; Shishu, Kishore, Tarun, Tarun Plus
Stand-Up India	April 2016; ₹10 lakh–₹1 crore; SC/ST and women; greenfield
PMJJBY / PMSBY / APY	May 2015; life / accident / pension
Payments bank	Deposits up to ₹2 lakh; no lending; Nachiket Mor Committee
Small finance bank	75% priority sector lending
FI-Index	2021; Access 35%, Usage 45%, Quality 20%

High-yield facts

SEBI’s mandate: protect investors, develop and regulate the securities market.
Masala bonds shift currency risk to the foreign investor.
Payments banks cannot lend; small finance banks can.
In the FI-Index, usage carries the most weight.

Traps

SEBI was not statutory until 1992.
ADR/GDR are issued abroad; IDR is issued in India.
MUDRA refinances; banks, NBFCs and MFIs lend.
PMJJBY is life cover; PMSBY is accident cover.

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