Role of Qib in Indian Capital Markets

India the world's seventh largest country and the second most populace nation has been a destination of unrealized potential. In the recent past it has seen as stir of economic activity changing the prim face of the nation. The country has had breath taking reforms bringing in foreign direct investments and foreign institutional investments into the country at a brisk pace. Today India is one of the most exciting emerging markets in the world to be in. A new

After the creation of this structured product, the SPV was entitled in the interest from the pool of bank loans. However, since the SPV’s shares are held by someone else that the originator, the SPV incomes doesn’t appear as part of the bank consolidate account . Thus, to repay the bank originators, SPV divided the cash flows from CDOs or MBSs securities into segments, called tranches, with different repayment and return conditions according to investors’ appetite for risk . As it will be in the next section, the CRAs have played an important role in the favourable rating of these segments.

Issuing a Yankee bond for Hutchison Whampoa would enable the company to enjoy nearly all the aforementioned benefits of international financing (lower borrowing costs, higher liquidity, diversification and greater flexibility), with the exception of hedging opportunities since it is unlikely that Hutchison receives any substantial portion of its revenues in USD. It would allow Hutchison to achieve its long-term capital needs without incurring overly high borrowing costs for longer-term bonds in the yet-unseasoned Hong Kong bond market. In addition, Yankee bond issuance is also now more attractive than before due to the exemption from GAAP-compliance &registration requirements provided by Rule 144A, which reduces

Though being in practice for a long duration, foreign currency convertible bonds (FCCB) have become very popular while raising funds at competitive rates. In India foreign currency convertible bonds (FCCB) are considered as foreign direct investment (FDI) by the government of India. Foreign currency convertible bonds (FCCB) are the more modern method of raising money for the company, which takes advantage of the economies being truly global. Also factors like government policies and regulation, exchange rate, and cost of conversion to stock/equity may influence investor’s decision to swap foreign currency convertible bonds (FCCB) into

i.e. SEBI acted as a nodal point and a navigator in entire proceeding of F I Investment and it registration in India. These regulations continue to maintain the link with the government guidelines by inserting a clause to indicate that the investment by FIIs should also be subject to Government guidelines. This linkage has allowed the Government to indicate various investment limits including in specific sectors. With coming into force of the Foreign Exchange Management Act, (FEMA), 1999 in 2000, the Foreign Exchange Management (Transfer or issue of Security by a Person Resident Outside India) Regulations, 2000 were issued to provide the foreign exchange control context where foreign exchange related transactions of FIIs were permitted by RBI. A philosophy of preference for institutional funds, and prohibition on portfolio investments by foreign natural persons has been followed, except in the case of Non-resident Indians, where direct participation by individuals takes place. Right from 1992, FIIs have been allowed to invest in all securities traded on the primary and secondary markets, including shares, debentures and warrants issued by companies which were listed or were to be listed on the Stock Exchanges in India and in schemes floated by domestic mutual funds.

Thus, with the superior trading mechanism coupled with information transparency investors are gradually becoming aware of the manifold advantages of the OTCEI. National Stock Exchange (NSE) With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock market trading system on par with the international standards.

Abstract The stock market is witnessing heightened activities and is increasingly gaining importance. In the current context of globalization and the subsequent integration of the global markets this paper captures the trends, similarities and patterns in the activities and movements of the Indian Stock Market in comparison to its international counterparts. This study covers New York Stock Exchange (NYSE), Hong Kong Stock exchange (HSE), Tokyo Stock exchange (TSE), Russian Stock exchange (RSE), Korean Stock exchange (KSE) from various sociopolitico-economic backgrounds. Both the Bombay Stock exchange

additional external financing. Therefore in order to maintain control or other reasons, existing shareholders can subscribe to a new issue and incur trading costs such as stamp duties also stock broking commission. Finally, all transaction costs will be reflected in the supply price and company value .In addition to explicit business deal costs are also less clear costs that related to the payment of dividends and are resorting to external finance , and that due information asymmetries and

I. Securities Markets A) Types of Securities Markets 1. The Primary Market a. Going Public: The IPO Process b. The Investment Banker’s Role 2. Secondary Markets B) Organized Securities Exchanges 1. The New York Stock Exchange a. Trading Activity b. Listing Policies 2. The American Stock Exchange 3. Regional Stock Exchanges 4. Options Exchanges 5. Futures Exchanges C) The Over-the-Counter Market 1. New Issues and Secondary Distributions 2. The Role of Dealers 3. Nasdaq 4. Alternative Trading Systems D) General Market Conditions: Bull or Bear Concepts in Review II. Globalization of Securities Markets A) Growing Importance of International Markets B) International Investment

8.6 Reforms in Primary Capital Market 8.7 Recent Trends in New Issues Market in India 8.8 Let U s Sum Up 8.9 Key Words 8.10 Some Useful Books 8.1 1 Answers/Hints to Check Your Progress

Hordes of private equity professionals, venture capitalists and investment bankers are making a beeline to identify lucrative business opportunities in India. Some of the profitable exits announced on the global private equity stage, the arrival of the Indian market as a hot destination with immense potential for private equity funds, and its readiness to embrace the global private equity with open arms. Today, some of the world’s leading private equity firms like Blackstone Group, Carlyle Group and General Atlantic Partners, and Actis Partners are firmly established in India. Some of the Indian firms like ICICI, IDFC and Kotak are also increasing their investments. And many new foreign PE funds like Lightspeed Venture Partners, Providence Equity Partners and Apex Venture Partners are planning to venture into India.

The Indian economy is the second fastest growing economy in the world after China with a growth rate of 6.5%. India seems to have become an investor’s haven with high returns on investments for foreign Institutional investors. Indian companies are recording higher profits and are gaining global recognition because of operations in several countries. However, for international presence, Indian companies need funds from time to time to expand their business. Companies either raise funds from the domestic market or through international market. For international funding, the most popular source amongst the Indian companies in the recent times

A foreign direct investment has become a striking measure of economic development in both developed and developing countries. FDI and FII thus have become instruments of international economic integration and incentive. Fast growing economies like China, Singapore etc., have registered unbelievable growth at onset of FDI. Though US captures most of the FDI inflows, developing countries still account for significant growth of FDI and rise in FII. FDI not only gives access to foreign capital but also provides domestic countries with cutting edge technology, desired skill sets, tools of innovation and other harmonious skills. The policies drafted to stimulate the flow of foreign capital in to India provided much needed an external (or) internal for India to emerge as an attractive destination for foreign investors. External factors such as global economic cues, FDI & FII, Exchange rate and Internal factors such as demand and supply, market cap, EPS generally drive and dictates the Indian stock market. The current paper makes an attempt to study the relationship and impact of FDI & FII on Indian stock market using statistical measures namely correlation coefficient and multi regression during the study period from 2005 to 2014. Sensex and Nifty were considered as the representative of stock market as they are the most popular Indian stock market indices. It concludes that Flow of FDIs and FIIs in India determines the trend of Indian stock market during the study

Absence of Integration: The Indian money market is broadly divided into the Organized and Unorganized Sectors. The former comprises the legal financial institutions backed by the RBI. The unorganized statement of it includes various institutions such as indigenous bankers, village money lenders, traders, etc. There is lack of proper integration between these two segments.

Money related Industry is the foundation of a present day economy. Soundness of Financial industry is a standout amongst the most essential pre-conditions for managed monetary advance of any nation. The universe of Finance has accepted another measurement at the beginning of the 21st century with the coming of innovation, in this manner loaning the business a stamp of comprehensiveness. By and large, Financing might be delegated retail and corporate Financing. Retail Financing, which is intended to meet the necessity of individual client and energize their investment funds, incorporates installment of service bills, customer advances, Visas, financial records equalizations, ATMs, exchanging reserves amongst records and so forth. Corporate financing, then again, obliges the requirements of corporate clients like bills marking down, opening letters of credit and overseeing money.