Role of Financial Intermediaries

In the capital market, there are a lot of individuals and organizations involved to contribute to the market. It includes government parties like SEBI and exchanges (NSE, BSE), Brokerage firms, Shares market research houses and advisories, investors as buyers and sellers, individual financial planners. All of these should be recognized by the headboard which is SEBI and work as per the protocols set by SEBI.

The intermediaries parties like individual financial planner or share market trading tips providers also play an important role. Providing the market updates to the traders. Moreover, they also act as agents in transferring funds from savers-lenders to borrowers-spenders.
Another task of those firms is to acquire funds by issuing their liabilities to the public and use the money to purchase financial assets, which includes, Earn profits on difference between interest paid and earned, diversify portfolios and minimize risk, to lower the transaction costs, Competition lowers interest rates which are beneficial for economic growth.
Traders in the market should choose the financial planner wisely as there are many fraudulent exist in the market. A trader must ensure that the organization is choosing is a SEBI registered firm and have the authenticity to work in the market. He also must ensure that the company is providing tips like commodity tips, HNI tips etc as per the SEBI norms and regulations. One of the famous names in the authentic market advisors is 24 Carat Financial services, which provides services under SEBI rules and regulations.