pawan full n final ib presentation

7/29/2019 Pawan Full n Final IB Presentation

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INTERNATIONAL BUSINESS

PRESTIGE INSTITUTE OF MANAGEMENT

AND RESEARCH INDORE

INVESTMENT FROM ABROADIN INDIAN EQUITY MARKETPRESENTED BY:- PAWAN SONI&

GABRIELA VERMA


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INVESTING IN INDIAN STOCKMARKETThe Indian stock market is booming and has attracted theattention of fund managers all over the world.

The Bombay stock exchange(BSE) is the most popular stockexchange in India.

In India, not just the domestic traders are invested, but thereare many FDIs who have strong financial holdings.

The recent IT boom and the past market performance.


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HOW TO INVEST ININDIAN STOCK MARKETS

To definitely start this one has to do a lots of paper work.

This may involve opening a bank account.

Then need to choose a good broker to make their

investment safe.

All these things done will help in all transactions executedfairly and transparently.


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WAYS OF INVESTMENT FROMABROAD IN INDIAN EQUITY MARKET1. Invest in India based ETFs

2. Invest directly in Indian Stock Market

3. Invest through Indian Mutual Funds

4. Depository Receipts

5. Participatory notes


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1. Exchange Traded Funds:-An exchange-traded fund (ETF) is an investment fund traded

on stock exchanges, much like stocks.

An exchange traded fund looks like a mutual fund that tracksan index, a commodity or a basket of assets like an index

fund, but trades like a equity stock on an exchange.

ETFs are popular world over with nearly 60% of tradingvolumes on the American Stock Exchange (AMEX) captured

by all types of ETFs.

ETFs have been available in the US since 1993 and in Europesince 1999.


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7. Style ETFs

8. Bond ETFs

9. ETNs Exchange Traded Notes

10. Inverse ETFs

Types of ETFs available in India are:-

1. index,

2. commodity,

3. bond funds.


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ADVANTAGES OF ETFs1. Can easily be bought / sold like any other stock on the

exchange through terminals across the country.

2. Can be bought / sold anytime during market hours.

3. No separate form filling. Just a phone call to your broker.

4. Ability to put limit orders.

5. Minimum investment is one unit.

6. Enjoy flexibility of a stock and diversification of index fund.

7. Expense Ratio is lower.

8. Provides arbitrage between Futures and Cash Market.


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2. Invest Directly in Indian Stocks:-NRIs can also invest directly in Indian stocks, but they needto set up some accounts before they can do this.

First, you either need a NRE or a NRO bank account.

Secondly, you need an approval under the PIS (Portfolio

Investment Scheme) which allows you to invest in theIndian stock market.

And then, you also need a Demat account to transact inIndia. All stocks are not available for investment in Indian

Stocks.

3. Invest in Indian mutual funds:-


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4. Invest through Depository receipts:-American Depository Receipts

In an ADR, the company deposits a large number of its shareswith a bank in the US.(Custodian Bank)

The bank issues depository receipts against these shares,

These receipts are issued to the public and listed and tradedon the stock exchange.

The price of the ADR will usually move in line with the price ofthe underlying stock.


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5. Invest through Participatory Notes:-Participatory Notes commonly known as P-Notes or PNs

These are instruments issued by registeredforeign institutional investors (FII) to overseas investors, whowish to invest in the Indian stock markets without registering

themselves with the market regulator, the Securities andExchange Board of India - SEBI.

SEBI permitted foreign institutional investors to register and

participate in the Indian stock market in 1992.

Investing through P-Notes is very simple and hence verypopular amongst foreign institutional investors.


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INVESTMENT BY NRIsWho is a non-resident Indian (NRI)?Non-Resident Indian (NRI) means a person resident outsideIndia who is a citizen of India or is a person of Indian origin.

What is a Portfolio Investment Scheme (PIS)?Portfolio Investment Scheme (PIS) is a scheme of reserve bankof India under which Non Resident Indian (NRIs) canpurchase/sell shares/convertible debentures of Indiancompanies on Stock Exchanges.


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How Investment positions of NRIare monitored?Reserve Bank monitors the investment position of NRIs/FIIs inlisted Indian companies on daily basis.

When the total holdings of NRIs/FIIs under the Scheme reaches

the limit of 2 percent below the sectoral cap, Reserve Bank willissue a notice to all designated branches of designated banks

Once the shareholding by NRIs/FIIs reaches the overall ceiling /sectoral cap /statutory limit, the Reserve Bank places the

company in the Ban List.

Once a company is placed in the Ban List, no NRI can purchasethe shares of the company under the Portfolio Investment

Scheme.


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FDI in Indian Stock Markets: How itImpacts You

It will bring some stability to the Indian Rupee because ofgreater inflow of dollars from these investors.

Currently, foreign retail investors can only buy Indian shares

through participatory notes or P-Notes.

These investments are currently not regulated which hascaused immense volatility in Indian markets in the past

whenever these investors have pulled out money.

Now, as per the new rules, these foreign individual investorscan invest directly in India through the mutual fund route.


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SOME NEWS UPDATES FOR THE TOPICThe investment by overseas investors into Indian stockmarket since the beginning of 2013 has crossed $ 7 billionmark (out of this more than $ 3 billion were pumped in themonth of February alone.)

Strong FII inflows to signs of easing interest rates by theReserve Bank and the subsequent impact of improvedliquidity position.

This includes the postponement of GAAR (General Anti

Avoidance Rules)implementation by two years to April 1,2016.

Partial decontrol in diesel prices and change in RBImonetary policy have also attracted foreign investors.


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pawan full n final ib presentation

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