Evaluate the following statements about financial markets:
I. The primary market is the market for new securities issuance — where companies and governments raise fresh capital directly from investors through IPOs, FPOs, rights issues, and bond issuances; the secondary market is where previously issued securities are bought and sold between investors without the company receiving any proceeds.
II. The money market deals in short-term debt instruments with maturity of up to one year (e.g., T-Bills, commercial paper, certificates of deposit, call money), while the capital market deals in long-term instruments (e.g., equity shares, debentures, long-term bonds) with maturities beyond one year. Which of the above is/are correct?

Both statements are correct. Statement I correctly distinguishes primary markets (where new capital is raised) from secondary markets (where existing securities are traded between investors). In a primary market transaction, proceeds go to the issuing entity. In secondary market transactions (e.g., buying shares on NSE or BSE), proceeds go to the selling investor — the company receives nothing. Statement II correctly describes the money market versus capital market distinction: money market instruments are short-term (up to 1 year) and primarily for liquidity management; capital market instruments are long-term (beyond 1 year) and for capital formation. The RBI regulates the money market; SEBI regulates the capital market for securities.