...STOCK EXCHANGES IN INDIA Module Objectives The main objective of this module is to explain the structure of organized exchanges for trading in stocks, commodities and derivatives. The features of derivative instruments like forwards, futures, options and swaps are also described. Module Contents 5.1. Stock Exchanges 5.2. Commodity Exchanges 5.3. Derivatives 5.4. Currency Futures in India 5.1 Stock Exchanges in India 5.1.1 History and Development Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meagre and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for...
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...Login Register | Resources | Practice Tests | Ask Experts | Question Papers | Jobs | Universities | Colleges | Courses | Schools | Training | | Gift Shop | Bookmarks | Reviews | Learn English | Social Hub | Links | New Posts | My India | Members | Polls | | | Active Members Today * R Pramod (199) * Ajay (121) * Abhinav (75)Last 7 Days * R Pramod (1735) * Sukhdev Singh (962) * Pramod (598)more... | Impact of Foreign Institutional Investors on Indian Stock Market Posted Date: Total Responses: 0 Posted By: hardeep Member Level: Silver Points/Cash: 10 | | CHAPTER I INTRODUCTION 1.1 INTRODUCTION 1.1.1 FOREIGN INSTITUTIONAL INVESTORS FII is defined as an institution organized outside of India for the purpose of making investments into the Indian securities market under the regulations prescribed by SEBI. ‘FII’ include “Overseas pension funds, mutual funds, investment trust, asset management company, nominee company, bank, institutional portfolio manager, university funds, endowments, foundations, charitable trusts, charitable societies, a trustee or power of attorney holder incorporated or established outside India proposing to make proprietary investments or investments on behalf of a broad-based fund. FIIs can invest their own funds as well as invest on behalf of their overseas clients registered as such with SEBI. These client accounts that the FII manages are known as ‘sub-accounts’...
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...Venturing into new country: India Venturing into new country: India Introduction India has always been among the top for any MNC expansion. Being one of the leading economies in the world India has emerged as the winner even in the global meltdown of 2008. This has made the country a safe haven for the potential investors in the last couple of decades after the country opens up for the global world after liberalization in 1991. Some of the characteristics of the country are as follows: Capital | New Delhi | Form of Government | Democratic/Republic | Population | 1.21 billion | Per Capita Income | $3851 | Inflation rate | 5.96% | GDP growth | 4.5% | External Debt | $345 billion | External Debt to GDP ratio | 67.57 | Trade Balance | -967.2 billion | Language | Official: Hindi, English. Many more recognized | Major cities | Delhi, Mumbai, Chennai, Kolkata | Climate | | Trade Block association | ASEAN, SAARC, | GINI Coefficient | 36.8 | Human Development Index | 0.554 | Much recent news confirms the fact that India is one of the major destinations for the expansion. Recently Jet-Etihad deal, high growth in FII in the Indian Stock market, green field and brown field investment in the sectors of aviation...
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...Wealth Management - Profit Centre Operations - Customer Relationship Management - Business Development - Product Management - Marketing/Brand Management - Legal Business Issues - Channel Management - People Management Career Highlights ABC1 Inc. Aug.’06 till date The ABC1 Inc. - Asset Management Company is among the top ten asset managers in India. Launched in April 2006, ABC1 Inc. Portfolio Management Services (PMS) caters to the unique needs of enterprises and High Networth Individuals. Vice President - (Portfolio Management Services) Distinction of establishing the PMS business and increasing assets under management to US$ 250 Million, a ten fold increase within one year of operations Conceiving and developing channels for distribution and marketing of existing and new products, established channel partnerships with 10 leading wealth managers in India. Conceptualized, researched, market-tested and launched five new, successful products in one year. Leading the business development team and enhancing their skills levels to take on independent decisions....
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...* Objectives of the project * Scope of the project * Concepts * Excel Analysis * Computational Aspects * INTERPRETATION AND CONCLUSION 11 * REFERENCES 11 OBJECTIVES * To select the stocks of two companies from different sectors to invest. * To determine the beta value for each of the stocks for last financial year on the basis of National Stock Exchange (NSE) and interpretation of beta. * To determine a minimum risk portfolio by using the two stocks. Company Profiles Mahindra Finance Mahindra & Mahindra Financial Services Limited is one of the leading non-banking finance companies in India. It is among the top 500 Indian companies by market capitalization. For the fiscal ended 31 March 2011, Mahindra Finance recorded a standalone net profit of 463.10 Crore against 342.70 Crore in FY10-11. In the same period, Mahindra Finance’s consolidated net profit stood at 493.66 Crore compared to 356.09 Crore. Unitech Ltd. Established in 1972, Unitech is today a leading real estate developer in India. Known for the quality of its products, it is the first developer to...
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...Introduction: Generally shares are issued in the primary market and new issued shares are traded in the secondary market. BSE and NSE are two renowned stock exchanges which plays an important role in Indian stock market. Most of the big companies in India are listed in these stock exchanges. The companies are enlisted with these stock exchanges as per rules and regulation specified by particular stock exchanges (Greer and Kolbe, 2008). In Indian context the company distributes the shares in lieu of capital with the help of these stock exchanges. It is an essential pillar of private sector companies. Mallin and Ow–Yong (2009) commented that capital formation is the main function of stock exchanges. Beside the main function stock exchanges in India do lots of work. It provides a place where all the securities are traded. Security market provides a linkage between saving sector and corporate sector. Stock market generally provides the all the information about price and trading of the securities altogether. The author selects three big companies i.e. Reliance industries ltd, ONGC, Bharti Airtel Ltd, to compare as required in the assignment. In this report the author collects financial and statistical data of these companies and analyse them to make reasonable comments on the above companies (CACEIS, 2010). 2.0. Calculations of returns of stocks: Calculation of daily and monthly return of different companies shows in the Excel Sheet 1,2 3,4,5 and 6 [Available from:...
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...Sanskrit word for truth and honesty. In January 7, 2009, will go down as a black day in corporate India for this was the day India was hit by its first major market/corporate scandal leading to the collapse of the stock of a major Indian IT corporate house. Ramalinga Raju, founder and Chairman of Satyam Computer Services Ltd, India’s 4th largest IT services company, admitted to fraud and inflating the revenue and costs and resigned from the company and the board. Raju admitted that he falsified the account books at Satyam. The $1.04 billion listed in assets is non-existent according to Raju reports The New York Times (12/01/2009). Satyam was listed on the Bombay Stock Exchange, The New York Stock Exchange (NYSE) and Euronext. NYSE stopped trading Satyam’s stocks after news spread. Later, Satyam removed from the Indian stock exchange. Analysts in India have termed the Satyam scandal as India's own Enron scandal. The following is a list of factors that contributed to the fraud: • Greed • Ambitious corporate growth • Deceptive reporting practices—lack of transparency • Excessive interest in maintaining stock prices • Executive incentives • Stock market expectations • Nature of accounting rules AFTERMATH OF SATYAM SCANDAL Satyam's shares fell to 11.50 rupees on 10 January 2009, their lowest level since March 1998, compared to a high of 544 rupees in 2008[13]. In New York Stock Exchange Satyam shares peaked in 2008 at US$ 29.10; by March 2009 they were trading around US $1.80....
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...Circuit Breaker Systems in India Circuit breaker is a point at which a stock market will stop trading for a while when the value of a stock drops substantially. It is used by stock exchanges to avert panic selling when investors do large sell offs. This helps prevent market free fall and create a balance between buy and sell orders. HISTORY Circuit breakers were introduced in the market in response to Black Monday, which was an uneventful day, On Oct 19th, 1987; the market plunged 508 points (22%) and lost $500bn in one day. Circuit breakers were introduced in October 1989. Circuit breakers have evolved and have strict guidelines these days. Circuit breakers were placed at drop points. Which meant if the market dropped by 400 or 500 points, they would come into effect. In 1997, this was given way for a more rational percentage based circuit breaker system. If the market dropped by 10% or 20%, circuit breakers would come into effect. In the US markets, SEC can halt trading if the DJIA drops by 10% before 2.30pm. If the DJIA drops 30% at any pint in the day, trading for the day ends. DJIA has dropped more than 10% only three times in its history. CIRCUIT BREAKER in INDIA. They were introduced in 2001 by the SEBI ( Securities & Exchange Board of India). They will apply if the Bombay Stock Exchange or National Stock Exchange moves by 10%, 15% or 20%. On May 18, 2009...
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...IDEA Cellular is a publicly listed company, having listed on the Bombay Stock Exchange (BSE and the National Stock Exchange (NSE) in March 2007. IDEA Cellular is a leading GSM mobile service operator with pan India licenses. With a customer base of over 40 million in 15 service areas, operations are soon expected to start in Orissa and Tamil Nadu-the first steps in providing pan India services covering over 90% of India's telephony potential. A frontrunner in introducing revolutionary tariff plans, IDEA Cellular has the distinction of offering the most customer friendly and competitive Pre Paid offerings, for the first time in India in an increasingly segmented market. Customer Service and Innovation are the drivers of this Cellular Brand. A brand known for many firsts, Idea was the first to launch GPRS and EDGE in the country. Idea has received international recognition for its path-breaking innovations when it won the GSM Association Award for "Best Billing and Customer Care Solution" for 2 consecutive years. IDEA Cellular is part of the Aditya Birla Group, India's first truly multinational corporation. The group operates in 25 countries, and is anchored by over 1,25,000 employees belonging to 25 nationalities. The Group has been adjudged 'The Best Employer in India and among the Top 20 in Asia' by the Hewitt-Economic Times and Wall Street Journal Study 2007. Our Service Areas 11 The Indian telecommunications market for mobile services is divided into 22...
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...ft Beta Estimation Practice And Its Reliability Biasness Towards Aggressive Stocks: An Empirical Evidence From NSE * Dr. Neeraj Sanghi ** Dr. Gaurav Bansal INTRODUCTION While investing in a capital market, investors always have concern about the market movements or changes in the value of capital market index. This tendency of investors' behavior is related to a psychological factor that reveals that market movements and prices of stocks are closely related to each other. Upward / downward movement in market index gives trigger to the expectation of investors that the value of their holding would move accordingly. This is, more formally, known as systematic risk arising on account of economic wide uncertainties and explains the tendency of stock's price movement together with changes in market index. Systematic risk, also known as market risk, cannot be reduced through diversification of stocks' portfolio. Investors arc exposed to market risk even when they hold well diversified portfolio of securities. In finance literature, beta coefficient is a measurement statistic of systematic risk; it refers to the slope in a linear relationship fitted to data on the rate of return on a stoek and Ihc rate of return of the market (or market index). This usage stems from Sharpe's 1963 paper in Management Science. Beta is the stock's sensitivity to the market index: it is the degree (in percentage) by which the stock's relum lends to increase or decrease for every 1% increase or decrease...
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...STRATEGIC FINANCE Student I.D.#: SP16-EX-0053 Program: MBA Name: Malik.M.Umair Wasif Student I.D.#: SP16-EX-0053 Program: MBA Course Title: A.R.M Instructor: Sir Umair Baig TABLE OF CONTENT S.NO. | CONTENTS | PAGE NO. | 1 | Scope of the research paper | 3 | 2 | Introduction | 3 | 3 | Research methodology | 3-4 | 4 | Conclusion | 4 | 5 | Limitations and future direction of research | 4-5 | | (a) Limitations | 4 | | (b) Future direction of research | 5 | BEST PRACTICES IN ESTIMATING COST OF CAPITAL 1. THE SCOPE OF THE RESEARCH PAPER: It is a survey research paper presenting the results of the cost of capital survey of advisors, corporations etc showing a close alignment among the groups on the use of common theoretical framework and on many aspects of estimation. Variations are found on large number of joint choices regarding cost of capital. 2. INTRODUCTION TO THE TOPIC: The paper is about presenting evidence that how some of the most financially sophisticated companies and financial advisers estimate capital cost. The evidence to be presents is valuable in several aspects. First is to identify the most important ambiguities in the application of cost of capital theory and the second is helping interested companies benchmarking their cost of capital estimation practices against best practice peers. Third is that the evidence sheds light on the accuracy with which the capital costs can be reasonably estimated. The cost of capital can...
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... [pic] When looking at the average size of trades in each time zone, it is interesting to note a clear convergence towards a comparable figure. It is also interesting to note that the downward trend started in 2000[4], and has accelerated for the last two years. The significant larger figure from the EAME time zone is consistent with its absolute value of share trading and the smaller figure of number of trades compared to the other regions. [pic] Total Number of Listings +41% [pic] The total number of listings has reached a stable figure (around 45 000) since 2005. This metrics is the most sensitive to the evolution of membership (the sharp increase in 2001 corresponds to the inclusion of Bombay Stock Exchange, National Stock Exchange of India,...
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...the leading commercial private sector ports in India. The port is located in the Kutch District of Gujarat, on the northwest coast of India. The multi-product SEZ at Mundra and the surrounding areas is one of India's largest port-led SEZ. Incorporated as Gujarat Adani Port Limited in 1998, MPSEZL is a part of the Adani Group, one of India's leading business houses. The Company accessed the capital markets in 2007-08 and is listed on the National Stock Exchange of India and the Bombay Stock Exchange. The port The por t handles close to 30 million tonnes of cargo, ranging from bulk cargo, container cargo, automobiles and crude oil. It has 8 operational multi-purpose berths located in sufficiently deep water which are designed and equipped to handle dry bulk, break bulk and liquid cargo. We have successfully commissioned a container terminal capable of handling one million Twenty-feet Equivalent Units (TEU) with state-of-the-art handling equipment’s and highly skilled and productive operating manpower. The container terminal has an excellent draft and is capable of accommodating cape size ships. The terminal is configured to handle automobile exports too. Other port based services and infrastructure include storage facilities for bulk, dry and liquid cargo, single point mooring to handle crude oil and services for rail movement of cargo. The port is connected by rail, road, air and pipeline to the transportation net work of India. Our private operational aerodrome is suitable...
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...of Derivatives The global economic order that emerged after World War II was a system where many less developed countries administered prices and centrally allocated resources. Even the developed economies operated under the Bretton Woods system of fixed exchange rates. The system of fixed prices came under stress from the 1970s onwards. High inflation and unemployment rates made interest rates more volatile. The Bretton Woods system was dismantled in 1971, freeing exchange rates to fluctuate. Less developed countries like India began opening up their economies and allowing prices to vary with market conditions. Price fluctuations make it hard for businesses to estimate their future production costs and revenues. 2 Derivative securities provide them a valuable set of tools for managing this risk. This article describes the evolution of Indian derivatives markets, the popular derivatives instruments, and the main users of derivatives in India. I conclude by assessing the outlook for Indian derivatives markets in the near and medium term. 2. Definition and Uses of Derivatives A derivative security is a financial contract whose value is derived from the value of something else, such as a stock price, a commodity price, an exchange rate, an interest rate, or even an index of prices. In the Appendix, I describe some simple types of derivatives: forwards, futures, options and swaps. Derivatives may be traded for a variety of reasons. A derivative enables a trader to hedge some...
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...mentioned that the Indian stock markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only few brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States to Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as “The Stock Exchange“). Trading was at that time limited to a dozen brokers. These stock brokers organized an informal association -the Native Shares and Stock Brokers Association, Bombay...
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