This much‐awaited new edition of a pioneering textbook written by an expert academic and policy maker is released after a gap of eight years. All through these years the book has been in demand across many university departments and b‐schools. \nIndia has seen landmark changes in its financial system in recent times, which has transformed the economic scenario of the country in a big way. This has necessitated a thorough revision of this textbook. This edition incorporates these changes in all their complexities, yet retains the original focus on the analysis of the principles and practices in the money market, capital market and foreign exchange market of India. \nThis all‐inclusive textbook — covering major concepts, regulations and practices in the working of financial intermediaries, capital market, money market and foreign exchange market — puts the Indian financial system in the right perspective, making it a “must have” for the students of MBA and economics, as also for those appearing in professional examinations such as CA, CFA and ICWAI. \nThe book has been thoroughly revised and includes the latest available data.