Zero coupon Bonds is the other name given to treasury bill. This is because they are issued at a price lower than face value and are redeemed at par. The difference between issue price and redemption value represent interest receivable on them also called discount. For eq. a treasury bill of face value Rs. 100,000 may be issue at Rs. 96,000, Rs. 4000 representing the interest payable.

SEBI stands for Securities and Exchange Board of India. SENSEX is the benchmark index of BSE.Since the BSE has been the leading exchange of Indian securities market.Stocks of thirty companies actively traded in the market constitute the SENSEX in Bombay Stock Exchange.

(a) i. Prospectus issue
ii. Issue through intermediaries:
iii. Private placement:
iv. Rights issue: 
(b)
The methods of floating new issues in the primary market are:
(i) Offer Through Prospectus: It is the method of floating new issues by inviting subscriptions from the public through issue of prospectus.
(ii) Offer for Sale: It is the method in which the securities are not issued directly to the public but through intermediaries like issuing houses or stock brokers.
(iii) Private Placement: It refers to the allotment of securities by a company to institutional investors and some selected individuals.
(iv) Rights Issue: It is the privilege given to existing shareholders to subscribe to new issue of shares in proportion to the number of shares they already hold.
(v) e-IPO: It refers to issuing securities through the online system of stock exchange.
(c) The main investors in the primary market are banks, financial institutions insurance companies , mutual funds and individuals.

Main functions of stock exchange are as follows
(i) Pricing of securities The stock market helps to value the securitics on the basis of demand and supply factors. Higher the demand for such securities, higher is their value. The valuation of securities is useful for investors, government and creditors.
(ii) Contributes to economic growth In stock exchange, securities of various companies are bought and sold. This process of disinvestment and reinvestment helps to invest in most productive investment proposal and this leads to capital formation and economic growth.
(iii) Spreading of equity cult Stock exchange encourages people to invest in ownership securities by regulating new issues, better trading practices and by educating people about investment.
(iv) Liquidity The main function of stock market is to provide ready market for sale and purchase of securities which assures the investors that their investment can be converted into cash whenever they want.
(v) Safety of transaction The stock exchange is well regulated and its dealings are well defined according to the existing legal framework. This ensures that the investing public gets a safe and fair deal in the market.

i) To cheat the investors/ lenders by providing them false information fraudulent activities
ii) Possibility of over capitalization
iii) Dissatisfaction amongst the employees

Commercial paper is a source of bridge financing. Bridge financing refers to short term funds for seasonal and working capital needs. Le it may be used as an associated source of financing. If a company needs long term finance buy machinery it must raise these finds from the capital market. For this company must incur floatation costs – brokerage commission funds used to finance such needs over called bridge financing.

The three interest group are :- Issuers, investors and intermediaries. SEBI protects interest of intermediaries by offering a competitive, professional and expanding market with adequate and efficient infrastructure so that they are able to render better service to investors and issuers.

Demutualization :- Refers to separation of ownership and control of stock exchange from trading rights of members. This reduces conflict of interest between exchange and brokers and reduces chances of brokers using stock exchanges for personal games.
Dematerlisation of Securities :- Refers to electronic book entry form of holding and transferring securities. There is no physical transfer and therefore problem of the theft, forgery, delay etc. are eliminated.

The other name given to Zero Coupon Bonds is ‘Treasury Bill’s. They are called zero coupon as they are issued at a price less than the face value but are repaid at par.

Financial assets basically refer to assets which can be traded in the financial market like shares or debentures. Financial Markets provide Liquidity to such assets as they can be readily sold and converted into cash whenever require.