...A Decade of Reforms in Government Securities Market in India and the Road Ahead* RAKESH MOHAN I. INTRODUCTION It gives me great pleasure to deliver this keynote address at the Annual Conference of FIMMDA jointly organised by the Fixed Income Money Market Dealers Association of India (FIMMDA) and Primary Dealers Association of India (PDAI). Many of you would recall that the FIMMDA-PDAI conference held in Bangkok in 2002 was addressed by Governor, Dr. Y. V. Reddy when he was Deputy Governor. My address today is like a footnote to the comprehensive address given by Dr Reddy in Bangkok1 . He had covered a whole range of issues relevant for the development of the debt market including the need and motivation for development of domestic debt markets, the key issues relating to the development of the government securities market and also of the corporate bond market. He had emphasised the importance of the development of institutions and infrastructure such as the development of institutional investors, self-regulatory organisations, credit rating agencies, the relative roles of banks and bond markets, development of primary dealers, efficient clearing and settlement mechanisms and the like. More importantly, he had laid out the road map for the development of Indian debt markets in a very detailed manner for the following two years. I am here to really give you a progress report. First, it is very gratifying to see that most of reforms contemplated by him at that time...
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...E-COMMERCE IN SECURITY MARKET (Source: Most of the Data & charts from NSE website) A) ABOUT E-COMMERCE World Trade Organisation (WTO) defines E-Commerce as “the production, distribution, marketing, sale or delivery of goods and services by electronic means”. The strategic benefit of making a business ‘e-commerce enabled’, is that it helps reduce the delivery time, labour cost and the cost incurred in the following areas: ➢ Document preparation ➢ Error detection and correction ➢ Reconciliation ➢ Mail preparation ➢ Telephone calling ➢ Data entry ➢ Overtime ➢ Supervision expenses Further, it enables - ➢ Easy reach to a fast growing online community ➢ Unlimited shelf place for products and services ➢ Fuse the global geographical and time zone boundaries ➢ Reach national and global markets at low operating costs The sudden spurt in growth of e-commerce in India is felt due to the following favourable factors: ➢ Rapidly increasing Internet user base ➢ Technology advancements such as VOIP (Voice-over-IP) have bridged the gap between buyers and sellers online ➢ The emergence of blogs as an avenue for information dissemination and two-way communication for online retailers and E-Commerce vendors ➢ Improved fraud prevention technologies that offer a safe and secure business environment and help prevent credit card frauds, identity thefts and phishing ➢ Longer reach - Consumers in the Tier II & Tier III cities...
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...Cambodia Securities Market Overview While banks have been the main source of funding for businesses in Cambodia, this will soon change with the opening of securities markets. Cambodia officially launched a stock exchange on 11 July 2011. The Cambodia Securities Exchange (CSX) is a joint venture between the Cambodian Ministry of Economy and Finance, which controls 55%, and the Korea Exchange (KRX), which holds 45%. The Regulator: The Securities and Exchange Commission of Cambodia (SECC) regulates the Cambodia Securities Exchange (CSX) in Cambodia . The SECC is established under the law on The Issuance and Trading of Non-government Securities. Requirements for listing on the CSX (Prakas): Prakas are regulations that are issued by the SECC. The SECC had issued 23 major Prakas as of July 2012. Companies Considering Listing: Three state owned enterprises, Sihanoukville Autonomous Port (SAP), Telecom Cambodia (TC) and Phnom Penh Water Supply Authority (PPWSA) have been selected to list on the exchange. On 18 April 2012, Phnom Penh Water Supply Authority has been officially listed on the CSX while the other two SOEs still in progress.In addition, two private companies - TY Fashion (Cambodia) and Grand Twins International (Cambodia) have planned to list on the CSX and the IPO works are in progress. More than 10 other private firms and two more state-owned companies have expressed intentions to list on the CSX. Key Operating Rules Market hours, trading times ...
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...I No. 1 Dec. 2004 Growth and Performance of Securities Market in Nepal Jas Bahadur Gurung* ABSTRACT Securities Board, Nepal, an apex regulator and facilitator of capital market, and Nepal Stock Exchange Ltd., only a single stock market, are the main constituents of securities market in Nepal. This paper attempts to study the growth trend and analyze the performance of Nepalese securities market. Likewise, the variables such as number of listed and traded companies and their securities, number of transactions, trading turnovers, paid up value, market capitalization and NEPSE index are analyzed for the secondary market. SECURITIES MARKET IS A MECHANISM created to facilitate the exchange of financial securities or assets by bringing together buyers and sellers of securities (Sharpe 1998). Securities markets provide an effective way of procuring long-term funds by issuing shares and debentures or bonds for corporate enterprises and government and at the same time provide an investment opportunity for individuals and institutions (Adhikari 2004). Thus, the market place for these financial securities is called securities market which is further subdivided into the primary and secondary market. The former market denotes the market for newly issued securities to the public whereas the latter market refers to the market for secondhand securities, traded previously in the primary market (Francis, 1991). The securities market plays an important role in mobilizing savings, and channeling...
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...investors the Government has established Securities and Exchange Commission on 8th June 1993, the main function of which are to develop and regulate markets and ensure proper issuance of securities. This commission act as a Central Regulatory Agency that guides the entire capital markets. Thus a lot of policies and regulations were framed by the Government through the commission to protect and enhance the securities markets helping channelize savings of different investment opportunities. But now-a-days the dual authority of Bangladesh Bank and Securities and Exchange Commission could jeopardize the development and functions of Merchant Banking policy. There are mainly two players in our country who regulate, make rules, acts, in the security markets. These are the Government and Security and Exchange Commission of Bangladesh (SEC). Beside this the two markets Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) are also enable to make rules, regulations regarding their market affairs. Government Regulation: The government has enacted varieties of laws applicable to the securities markets. These laws were the result of certain abuses that took place during the last decade. The collapse of the stock market of Bangladesh in 1996 provides an impetus for the regulation of securities trading. Securities markets regulating authority of Bangladesh along with the investors recognize that the regulation of securities markets is necessary in order to restore the...
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...Q.1 What is scurity Market Line The security market line (SML) equation is the Capital Asset Pricing Model. It is used to price risk, i.e., it is used to specify the risk/return relationship of a particular asset or portfolio, regardless of the level of diversification. The SML equation (provided with the CFP Board Exam) is: ri = rf + (rm - rf) βi The SML equation states that the return of a specific investment is equal to the risk-free rate plus a market risk premium multiplied by the investment’s beta (βi). By definition, the beta of the market is 1. Unlike the CML which uses standard deviation (σ) to measure risk, the SML uses beta (βi), i.e., systematic risk, to measure risk. Given a stock’s beta, the risk-free rate, and the market’s expected return, the SML equation will solve for the stock’s required rate of return. • Undervalued stocks will have an expected return greater than the SML’s required return; if a security plots over the SML it is undervalued and should be purchased. • Overvalued stocks will have an expected return less than the SML’s required return; if a security plots under the SML it is overvalued and should be sold or shorted. • A stock that plots on the SML has an expected return than is equal to the SML’s required return and can be bought or sold – the investor is indifferent. [pic] Which stock should be purchased, which should be sold? Stock plots over the SML therefore it is undervalued and should be purchased...
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...Проект розвитку ринків капіталу УКРАЇНСЬКІ ФОНДОВІ БІРЖІ: ПРОБЛЕМНІ ПИТАННЯ І РЕКОМЕНДАЦІЇ Підготував: Роберт Л. Сміт Міжнародний радник Проект розвитку ринків капіталу 17 січня 2006 року Роберт Л. Сміт – старший спеціаліст з біржової торгівлі цінними паперами, який має понад 30-річний досвід роботи у сфері регулювання, операційної діяльності, торгівлі і управління. Він володіє глибокими знаннями найкращої світової практики в біржовій діяльності та нагляду за роботою бірж, маючи досвід практичної роботи в Комісії з ЦП і бірж США, системі NASDAQ, Чікагській біржі опціонів та провідних інвестиційних компаніях. Пан Сміт брав безпосередню і активну участь у створенні нових ринків, працюючи зокрема в Казахстані, Таїланді, Китаї і Грузії. Передмова У цьому дослідженні запропоновано аналіз діяльності бірж ЦП в Україні, зокрема того, чи мають існуючі тут біржі потрібну кваліфікацію і незалежність для підтримки справді динамічного фінансового сектору України. Головна увага приділяється в цій роботі біржовому середовищу в Україні, однак аналізується також і роль регулятора, Державної комісії з ЦП і фондового ринку (ДКЦПФР), у контексті її впливу на розвиток фондових бірж щодо справжньої прозорості ціноутворення та планів щодо інвестування активів пенсійних фондів. З метою якомога докладніше розглянути ці проблеми і для кращого розуміння ролі, яку можуть відігравати українські фондові біржі у вирішенні цих проблем, проаналізовано такі питання щодо поточного стану діяльності...
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...Efficient Securities Markets and International Financial Reporting Standards Efficient Securities Markets and International Financial Reporting Standards Introduction As of January 2011 Canada’s publicly accountable enterprises (PAEs) will have to adopt International Financial Reporting Standards (IFRS) as their accounting framework under which financial statements are prepared. This means the accounting standards Canada had been using generally accepted accounting principles (GAAP) will no longer apply. What will this mean for PAEs and their investors? Will there be more or less decision useful information and will securities markets become more efficient with Canada’s adoption of IFRS or is it the same business, just different accounting? Executive Summary Comparing financial statements internationally has become difficult as accounting rules and standards have evolved differently depending on the country due to history, culture, political influence and economics. That is why the IFRS have been created and currently there is almost 100 countries that adhere to IFRS standards. Canada too has decided it must join and in 2011 all Canadian PAE’s will report under IFRS. There are both pros and cons for investors who will be relying on financial information from companies that are using IFRS’s foundation. The adoptions of IFRS will likely cause recognition, measurement and presentation differences in a company’s financial statements. Although IFRS’s...
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...Apple Lisa which was released in 1983 and was the first computer to have a mouse and a graphical user interface (Apple Inc…, 2015). The first Macintosh computer came in 1984 however it was not successful due to the lack of market share to compete with IBM (Apple Inc…, 2015). After several years of financial losses, Steve Jobs launched a product redesign in 1997 that led to the iMac in 1998 (Apple Inc…, 2015). During the 2000s, Apple began to focus on portal MP3 devices such as the iPod and mobile phones like the iPhone. Then Apple began a new line of business in the music industry with iTunes. Today, Apple Inc. is a major competitor within the computer and consumer electronics industry. Apple Inc. is headquartered in Cupertino, California and has 76,000 employee based in the United States. Apple Inc. has directly and indirectly created and supported 1.9 million jobs in the United States (Israel & Johnson, 2016). Apple Inc. has stores located in 18 countries including the United States (Apple Inc., 2016). After a brief overview and history of Apple Inc., this critical analysis will take a look at the industry in which it operates, apply economic theories to create profit maximization, analyze the economic implications of operating in global markets, assess the impact of ethical and regulatory considerations, analyze the macroeconomic environment, analyze the microeconomic environment, and finally address recommendations for the long-term output of the firm. Apple Inc...
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...the balance between the different economies, the way in which they all relate to the rest of the world, and the potential for development. It is already clear that there are major winners and losers in this process, in terms both of economic sectors The impact of globalization on Saudi capital market In reaction to the global technological advancements in business, the Saudi capital market is being forced to update, consolidate, and expand its activities. Globalization has affected Saudi capital market in the following: 2.1. Market Deregulation There are no restrictions on foreign investment, no restrictions on foreign exchange and repatriation of capital and profits, and no taxes on capital gains, dividends or repatriation of earnings. In 1997, foreigners with or without local participation, were allowed to participate in the Saudi equity market through the Saudi Arabian Investment Fund (SAIF), instituted in London. Since November 1999, foreigners have also been allowed to participate in the Saudi equity market through open-end __ mutual funds offered by Saudi banks. GCC citizens are permitted to directly invest in the Saudi equity market. Foreigners enjoy full market access and suffer no restrictions on capital mobility or convertibility. Saudi Arabia has no foreign exchange curbs, allow companies to carry forward losses indefinitely, effectively relieving businesses of the tax burden until they become profitable. The Kingdom is signing agreements with an...
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...4.1. Political eBay is a company, which is not very much influenced by political developments. Some countries might put some policies affecting them in place and the on-going globalization might have effects on them as well. Globalization Globalization is an issue that will positively affect eBay’s business. They will be able to expand internationally and find new markets. Government Policies Some government policies in favor and against interests might be introduced. When looking in the past though, national governments have left e-commerce alone. Regulatory bodies and processes Regulations could be passed making sites ensure a certain level of security in online shopping, increasing customer security but also costs for online businesses. 4.2. Economic Interest and Exchange Rates A future instability in Exchange rates would have heavy effects on eBay. Interest rates would also be affected by the instability and therefore affect eBay in bad ways. Economy Situation and trends Economic situations of course have a direct impact on eBay’s good performance. Another Wall Street crash would probably devastating effects on eBay while a second boom e-commerce would make eBay’s profit rocket. Taxation Taxation might affect eBay in two ways. First of all higher taxing of their profit might be possible. Secondly and more importantly if taxation for every sale in online auction houses would be introduced this would seriously damage eBay. 4.3. Social Lifestyle...
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...investment, economic prospects, social dimensions even poverty are affected by financial market. The available vast empirical and analytical literature suggest that in addition to other economic factors, the performance of long term economic growth and welfare of a country are related to its degree of financial sector development. Developed countries’ experience suggests that strong government bond market creates favorable environment for the development of an efficient corporate bond market although it is not always essential for a country to develop a government securities market. The financial markets, pivotal point of financial sector, execute a crucial role within the global economic system such as attracting and allocating savings, setting interest rate and discovering the prices of financial assets (Rose, 2003). A well diversified financial sector is highly dependent on the extreme collaboration of financing from equity market, bond market, and banks. The government bond market forms the backbone of a modern securities market in both developed and developing countries. Bangladesh has not been blessed with the contribution of both Corporate and Government bonds and consequently experiences the poor economic growth. With the current financial structure, characterizing the dominating presence of commercial banks, particularly the State Owned Commercial Banks (SCBs), the debt market of Bangladesh is very small relative to other South Asian countries amounting only 5.5 percent...
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...GM 594: Global and Domestic Security Management Table of Contents I. Introduction i. An example of an international company ii. Introduction to the subject of the paper II. Background i. Geographical location ii. History and its consequences of on this region iii. Current financial and economical situation III. Differences in the cultures i. Common ways of doing business ii. Understanding the culture and traditions IV. Security issues i. Benefits of establishing a business in this region ii. Business security issues facing an organization iii. Adverse effects on an organization V. Recommendations on reducing the risk i. Protection of assets and information ii. Protection of labor iii. Adhering to the laws and regulations VI. Conclusion VII. Works Cited Business Opportunities in Eastern Europe I. Introduction How safe is it to explore the business markets outside of the USA, particularly in the undeveloped markets? A good example of a company willing to take the risk to discover new business opportunities in such economic markets is the Coca Cola Company. Its early recognition of the global demand for their products led them to explore investing in the yet unexplored, and politically and economically challenged markets including the markets in the region of Eastern Europe. In the early 1990s, after some significant political and economical changes in this region, the...
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...this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and wholesale markets will be the main target.Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and wholesale markets will be the main target.Executive summary: A new industry of ready-made garment is to...
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...backs all of its securities, guaranteeing full payment at maturity dates; therefore, the more the government sells securities today, the more its future obligation to pay off the holders. Some believe that the increased future liability of the US due to the sale of securities (again, known as public debt) can be detrimental to the economy as it puts ever increasing pressure on the future generations to make good on the payments. For example, if you buy a 30-year Treasury bond today, the obligation to pay you in 30 years will fall on the taxpayers or investors of that time, many of whom have not even been born yet. For now government securities are one of the most secure investments one can make. They are considered secure because the general belief is that the issuing government (in our case the US) will continue to have a prosperous economy way into the future therefore having virtually no risk of defaulting on payments. In fact, they are considered so safe that many foreign governments use such securities to back their economies. Recently an Australian bank replaced a large portion of its holdings in gold with bonds issued by the governments of the USA, Japan, and Germany. This confirms the genuine trust that has been placed on government securities and why they are such powerful instruments of the economy. Types Of Government Securities The US government issues several types of securities to raise money for its operations. Again, all of these securities are backed by the...
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