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8/4/2019 2453 Capital
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EXCEL BUSINESS ACADEM
Presentation On:-Developments in Indian capital market
Presented By
Geetha.p
Mehul PatelJaved Alam
Paresh Vavadiy
Jayesh Patel
Hardik Modi
Dipankar Nat
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Definition
Capital Market Efficiency may be definedability of securities to reflect and incorpo
relevant information in their prices. Thre
of capital market efficiency may be distin1. Weak form of efficiency
2. Semi-strong form of efficiency
3. Strong form of efficiency
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Capital markets Key Developments
Simplified debt list agreement for debt securities
SEBI has permitted stock exchanges to set the trading hours (
and derivative segments) between 9 am to 5 pm subject to spe
conditions
Portfolio managers to segregate client funds and securities vi
funds and securities
Allocation methodology for debt investment limit prescribed
FIIs allowed to trade in interest rate futures within permissib
FIIs allowed to invest in IDRs as per guidelines prescribed by R
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Financial Services Key Developments
Government planning to ease restriction on foreign investment
insurance and banking i.e. allow FDI upto 49% from the present 26
- Bill to give effect for increase in FDI in insurance is pending befor
the Rajya Sabha
LLP Act and Rules notified in 2009- Clarity of FDI in LLP awaited
Companies Bill 2008 proposed to be put up before Parliament in
upcoming monsoon session
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Mutual funds Key Developments
AMFI has issued guidelines permitting change of mutual fund
distributor
Mutual funds are permitted to invest in IDRs subject to prescrib
guidelines
Abolition of entry load on all mutual fund schemes w.e.f August
Permission granted to allow trading of mutual fund units throug
registered stock brokers of recognised stock exchanges No distinction among unit holders on amount of subscription w
charging entry loads
New innovative products launched to explore untapped custom
gold traded funds, capital protection oriented schemes and SIP h
monthly investment as low as Rs 100
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MACRO PICTURE - CURREN
The Indian stock market has also grown in size and activity.and thi
spate of such companies coming into the capital market.
As of March 2006, there are more than 10000 listed companies inhas the prominent Bombay Stock Exchange (BSE) and the NationaExchange (NSE)
Total market capitalization - INR 32166 Bn. (estimate as of 31 Mar
49.81% of equity in 200 companies constituting the Bombay Stock(BSE) 200 Index was held by promoters in operational control
Of the 30 companies on the Sensex, 23 fall in the dominant sharemanaged category; with shareholdings ranging from 22% to 90%
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New Capital Issues by Non-Government Public Limited Com
Date of Publish : Mar 10, 2010
Capital Market
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Security & Type of Issue 2007-08 (April-March) 2008-09 (April-March) April-December 2008
No. of
Issues
Amount No. of
Issues
Amount No. of
Issues
Amount
1 2 3 4 5 6 7
1) Equity Shares (a+b) 111 56,848.3 45 14,670.6 40 14,006
(103) (54,732.4) (39) (13,022.0) (34) (12,826
a) Prospectus 85 47,477.5 25 2,673.3 20 2,009
(83) (46,138.8) (24) (1,966.5) (19) (1,771
b) Rights 26 9,370.8 20 11,997.3 20 11,997(20) (8,593.6) (15) (11,055.5) (15) (11,055
2) Preference Shares (a+b) 1 5,480.8
a) Prospectus
b) Rights 1 5,480.8
3) Debentures (a+b) 2 808.8
a) Prospectus
b) Rights 2 808.8
of which:
I) Convertible (a+b) 1 205.9
a) Prospectus
b) Rights 1 205.9
II) Non-Convertible (a+b) 1 602.9
a) Prospectus
b) Rights 1 602.9
4) Bonds (a+b) 1 500.0
a) Prospectus 1 500.0
b) Rights
5) TOTAL (1+2+3+4) 115 63,637.9 45 14,670.6 40 14,006
a) Prospectus 86 47,977.5 25 2,673.3 20 2,009b) Rights 29 15,660.4 20 11,997.3 20 11,997
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The recent decision of the Reserve Bank of India (R
allow foreign investment up to 49 percent in stock e
depositories and clearing corporations is hailed as a
development for the securities industry.
Deutsche Boerse, Europe's top stock exchange and
transaction service provider has signed an agreemen
%equity in the Bombay Stock Exchange (BSE) for $43
Recent development
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Singapore Stock Exchange (SGX) says its short listed
stake. It claimed that it has been short listed to buy
percent stake in the bourse.
US major, NYSE, bought 5 per cent in the National S
Exchange for $115 million. This values NSE at $2.3 bi
Cont
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NASDAQ Stock Market Inc., London Stock Exchange G
and NYSE Group Inc. have also been touted as bidde
stake in BSE.
Be Foreign stock exchanges are now eyeing equity s
the Over the Counter Exchange of India (OTCEI). Rec
officials from the China Shanghai Stock Exchange vis
OTCEI and it is learnt that the Chinese may willing to
cent in the exchange as permitted under current gui
Cont..
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Sources say that London's AIM and the South Korean
exchange may be willing to buy stakes in the OTCEI e
According to sources, the Inter-connected Stock Exc
India (ISE), an exchange floated by a group of small e
is attracting global peers like the London Stock Excha
Singapore Stock Exchange (SGX) and some top privat
players.
Cont
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Few weeks back Goldman Sachs acquired five per ceNational Stock Exchange.
Goldman Sachs has proposed to buy a stake in the M
Commodity Exchange (MCX), India's largest commodbourse.
London Metal Exchange and The Tokyo Commodity have also initiated talks with MCX
Cont..
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Negotiated Dealing SystemElectronic
Matching (NDS-OM) Launched
On August 1, 2005, RBI launched .
Firstly, banks and primary dealers were to trade on the system.
January 2006, system was extended to all insuranc
Union Budget 2006-07 announced the extension o
NDS-OM module to mutual funds (MFs), providenand pension funds.
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Mumbai as a Centre for International Fin
In his Budget speech the Finance Minister has
announcement in para 90 regarding appointm
high powered Expert Committee to ad
Government on how to make Mumbai a
financial center. This Committee has been cons
November 2005 under the Chairmanship of Shr
Mistry, Chairman, Oxford International Group.
d d l
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Anti-Money Laundering Guidelines
SEBI has put in place Anti-Money Laundering Guide
January, 2006 This is implemented to discourage and identify any
laundering or terrorist financing activities.
These guidelines are meant for use prima
intermediaries registered with SEBI under the S1992. (The Guidelines have taken into accou
requirements of the Prevention of the Money Lau
Act, 2002 as applicable to the SEBI registered)
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Introduction of Gold Exchange Traded F
schemes by Mutual Fund
SEBI has, vide notification dated 12th Janua
allowed MFs to float Gold Exchange Trad
schemes which have been are permitted t
primarily in Gold and Gold related inst
which have been defined as such instrumengold as underlying, as are specified by SEBI fr
to time
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