Following table shows distinction between capital market and money market:
Basis of Distinction |
Capital Market |
Money Market |
(i) Participants |
Its participants are financial institutions, banks, corporate entities, foreign investors. |
Its participants are Reserve Bank of India, banks, financial institutions and finance companies. |
(ii) Instruments |
Its main instruments are equity shares, debentures, bonds, preference shares etc. |
Its main instruments are Tbills, trade bills, commercial paper and certificate of deposit. |
(iii) Duration |
It deals in medium and long-term securities. |
It deals in short-term (less than one year) securities. |