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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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