Indian Capital Markets January, 2011

Indian capital market

There are 22 stock exchanges in India, the first being the Bombay Stock Exchange (BSE), which began formal trading in 1875, making it one of the oldest in Asia Tremendous growth in turnover : cash segment over 30% p.a., derivatives over 90% p.a. Global scale Turnover over 250 trn INR, Market cap over 70 trn INR

Structure of Indian capital market

Asset classes for investments

Equity Debt Hybrid of Debt & Equity Commodities including Gold Real Estate Art

Equity

Unlisted Private Equity Venture capital

IPO Listed

Equity
Direct "Cash" which can be offered in the form of Mutual Funds including exchange traded fund , Stocks or even unit link Insurance plan Derivatives in the form of Futures and Options which can be exchange traded or OTC

Debt

The Issuer could be a bank or a corporate Instrument can be deposit or debenture or note/certificate It can be secured or unsecured Rating Terms tenure, coupon, premium on redemption Exchange traded or OTC In derivative segment interest rate futures

Hybrid Securities

Balanced Funds Convertible Debentures Mezzanine debt Structured Notes

Other index linked notes Capital gaurantee notes Notes linked to Basket of stocks

Investment Planning and Advices

Financial needs

Growth of capital Cash flow required

Risk Appetite What is available in market ? (the risk and return profile of the instruments available in market)