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recent trend in capital

recent trend in capital

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Published by: sandiptanawala123 on Dec 03, 2009
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Recent trends Capital MarketIn the Year of 2009-10
Following the pherwani committee recommendation the government haveinititated steps for NMS and recognized the NSE in 1993 for setting of nationalmarket system in which electronic trading and the settlement is possible throughboutthe country on the basis of standard price and a fix margin service charge of commission for the broker NSE was the 23
stock exchange to be recognised under SC (R) act.With increasing regulation by SEBI on exchange the future role of exchange will be radically different from the present , as their development role will be increasingmuch faster than there regulatory role not only stock exchange but all the players inthe market, namely, companies , brokers , intermediaries and investors have comeunder the supervision and control of SEBI and along with increasing self regulationand stricter enforcement of a code of conduct on the member the stock exchange willhave to emerge as public service institutions catering to increasing demands of investors in the country. Listed companies have also a role in this process tocollaborate and extend all help for more efficient functioning of exchange. Toimprove the quality and efficiency of service, trained and professional category of intermediaries and broker is also necessary. education and training and researchwould be the hallmark of future stock brokers and other intermediaries, in the market
the pherwani committee recommended the setting up of the national market system based on the new stock exchange which was already set up in Mumbai. To make thenational market system effective, the committee recommended several supportagencies to provide high quality trading, settlement and depository services. In thiscontext, it has recommended that there should be three tires, namely, stock exchangeat Mumbai, Calcutta etc. regional stock exchange like those in major state capitals
and additional trading floors
sponsored or managed by principal or regional stock exchange. The structure of securities markets was on the following lines:
(1)regular stock market which are 21 in number at present.(2)National market system with a separate set of licensed broker all over thecountry mostly banks and corporate units, attached to NSE.(3)Retail broking trough a series of registered sub-broker attached to theregular stock markets or to NMS.(4)OTCEI for risky and venturesome companies and companies which cannot satisfy the listing requirements of regular stock exchange, such assmall companies. Most of those recommendation have already beenimplemented
Although pherwani committee on stock market reforms recommended the opening of four more stock exchange in addition to the existing 21 exchange, the trading floorsrecognized by SEBI can operate in those place linked to a main regional exchange.Because the stock exchanges in the future cannot function without better infrastructure, computerization, etc, this recommendation is not implemented. But insept.1996 Visakhapatnam stock exchange is recognized for electronic trading. For  brokers also capital adequacy norms have been laid down by SEBI but not yetimplemented Not only there is need for better infrastructure in the form of space,telecommunications, electronic network connecting all broker firms but also the broker firms shall themselves need a better capital base.
Bhagwan Mahavir College Of Business administrationVeer Narmad South Gujarat University,SURAT.
BATCH: 2009.Submitted By Patel YatinPatel Pratik

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