This text book is intended for the THIRD semester students of the B Com programme (2017 Admission onwards), under the ChoThe Indian Financial System has undergone a remarkable change during the last decadeice Based Credit and Semester System (C.B.C.S.S.), offered by the Mahatma Gandhi University, Kottayam. the Indian market confirms to best international practices and standards both in terms of structure and in terms of operating efficiency. Investment activity was mainly observed strong among the FII community in the Indian markets. The regulatory framework is being streamlined to the global standard. Through this book entitled "FINANCIAL MARKETS AND OPERATIONS" an earnest effort is made to bring out the essentials of Capital Market for the benefit of the academic community. The subject is lucidly presented in five modules, in a logical order. The first of these provides a broad view of the Indian financial system and SEBI. Other chapters deal with the primary market, secondary market, mutual funds and derivatives.