The Role of Non-Banking Financial, Institutions in Indian Economy

1. TERM-FINANCE — Its Function in the Capital Market

   Industry requires financial resources for: (1) setting up a new industrial concern, (2) expansion, modernization, renovation, etc, of an existing unit, and (3) carrying out the day-to-day business operations, Finance is required for the first two purposes on a long-term basis for the acquisition of fixed assets like land, building, plant, machinery, etc. On the other hand working capital is required for financing current assets like stock of raw materials, semi-finished goods, stores, bills receivable, etc.