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Under The Guidance Of: A Report Submitted For Internal Assessment of
Under The Guidance Of: A Report Submitted For Internal Assessment of
FH 1
07
Ms. D Mr. E
IIPM
IIPM TOWER, SATBARI, CHANDAN HAULA, CHATTARPUR-BHATIMINES ROAD NEW DELHI
ACKNOWLEDGEMENT
We thank Mr. in particular for assigning us this topic and encouraging us to write in the for his helpful comments. first place. We owe much to Mr.
We are indebted to all those who have been helpful throughout the process of writing this Report
Mr.
, Ms.
and Mr.
(Mr. A)
(Ms. B)
(Mr. C)
(Ms. D)
(MR. E)
CONTENTS
ABSTRACT
STP PANACEA FOR SECURITIES SETTLEMENT CONUNDRUM
Gloablisation of securities market has reinforced the necessity of doing business in a more streamlined and fine-tuned risk management system. Straight Through Processing (STP) is the industrys lingua franca for Securities Settlement Systems integration. The article brings out emergence of uniform international standards to promote improvements in the safety and efficiency of the systems. Implications of STP in Indian Capital Market through the prism of global developments have also been analysed.
STP
Globalisation, Liberalization and Corporatisation of the securities market have considerably increased trading volumes.
1
No more the barriers and the competition that used to prevail in the
FOOT NOTE
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The total number of transactions in the universe grows at a rate of around 4 million per annum across more than 50 countries. (GSCS Information Services Issue 5; July-Sept 2005)
DISCUSSIONS ON THE TOPIC STP MARKET EFFICIENCY DRIVER Straight Through Processing (STP) is the industrys lingua franca for system integration and the basis on top of which a compressed settlement will be delivered INTERNATIONAL STANDARDS The international standards have been instrumental in improving safety and efficiency of the SSS. There are two major streams of standards one initiated in the private sector and the other in the public sector-which culminated in the ISSA Recommendations 2000 and the BIS-IOSCO Recommendations 2001 respectively. .. INDIAN LEGISLATIVE INITIATIVE AND PROACTIVE SEBI As a precursor to uniform fully automated integrated Clearance and Settlement System for the securities market around the globe, the IOSCO adopted Objectives and Principles of Securities Regulation and. ARGUING THE TOPIC/POINTS RAISED MEASURING INDIAN SECURITIES MARKET THROUGH GLOBAL PRISM In this section we will discuss the results obtained from the econometric analysis of the data obtained from the securities market- India and important stock exchange of the world. Table 1 and Table 2 are the Annual Settlement Statistics of CM Segment and F &O Segment of NSE from the year 2001-2002 to 2005-2006 (Annualised). Trading of shares in demat mode during the year 2002-2003 improved to 100% against 99.89% in the previous year.
CONCLUDING OBSERVATIONS STP is a phantom concept. To realize the true STP, there is plethora of changes that needs to occur and successfully absorbed by all the Actors of the securities market. The
(Mr. C)
(Ms. D)
(MR. E)
www.sebi.gov.in www.iosco.org www.gscsbenchmarks.com Handbook on statistics on the Indian securities market 2004 (SEBI)