“A STUDY OF CAPITAL MARKET REFORM IN INDIA”

Project Report submitted in Partial fulfillment of the requirement for the

Award of the degree of
MASTER OF BUSINESS ADMINISTRATION
of
BANGALORE UNIVERSITY

By
NAME: YASHASWINI A
REG NO: 20JQCMD070
Under the guidance of

Name of Guide: RANGANATH

Designation of Guide: Assistant Professor

27/2, 33rd cross, 2nd Main, 7th Block

Jayanagar, Bengaluru – 560082

2020-22

Page 1 of 55
 “A STUDY OF CAPITAL MARKET REFORM IN INDIA”
Project Report submitted in Partial fulfillment of the requirement for the
award of the degree of
MASTER OF BUSINESS ADMINISTRATION
of
BANGALORE UNIVERSITY

By
NAME: YASHASWINI A
REG NO: 20JQCMD070
Under the guidance of

Name of Guide: RANGANATH

Designation of Guide: Assistant Professor

27/2, 33rd cross, 2nd Main, 7th Block

Jayanagar, Bengaluru – 560082

2020-22

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 STUDENT DECLARATION

I hereby declare that the Dissertation report titled “A STUDY OF CAPITAL

MARKET REFORM IN INDIA” submitted in partial fulfillment of the requirement
of degree of Master of Business Management in Bangalore University, has been prepared by
me during the academic year 2019-2021 under the Guidance (Mr./Ms./Miss./Dr. Name of
the Faculty guide) in Department of Management Studies.

I further declare that this Project Report is the outcome of my own efforts and that is not
submitted to any other University or Institute for the award of other degree or diploma or other
certificate.

Place: Bangalore Name: Yashaswini A

Date: Register No:2020JQCMD070

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 CERTIFICATE FROM THE COLLEGE

This is to certify that Ms. Yashaswini A bearing Register no: 2020JQCMD070 has
successfully completed the Project Report titled “A STUDY OF CAPITAL
MARKET REFORM IN INDIA” for the partial fulfillment of the requirement of the
Bangalore University for the award of Master of Business Administration. This research work
was carried out by his/her and it is original in nature.

PRINCIPAL

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 CERTIFICATE FROM THE GUIDE

This is to certify that the dissertation report titled “A STUDY OF CAPITAL

MARKET REFORM IN INDIA” is the Bonafede work carried out by
Ms.Yashaswini A bearing Register no: 2020JQCMD070 in partial fulfillment of the
requirement for the award of MBA degree of Bangalore University, under my Guidance and
Supervision.

The Project Report submitted by her/his has been successfully completed and reflects her/his
hard work and sincere effort.

Place: Bangalore
Date: Prof./Dr. (Name of the Faculty guide) Project
Guide
Department of MBA

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 ACKNOWLEDGEMENT

I owe a deep sense of gratitude to those who have contributed to the successful completion of
this endeavor and take this opportunity with much pleasure to thank all the people who have
helped us through the course of journey towards producing this Project report.

At the onset, I express my gratitude to the Almighty God for his abundant grace, blessings and
goodwill throughout this project.

I am grateful to my guide Prof. /Dr. (Name of the Faculty guide), City College for their constant
support, encouragement and guidance.

I am grateful to who gave his valuable time for the interaction and allowed me to carry out this
project.

I would also like to thank all who helped me directly or indirectly in completing this project
successfully.

Name of the Student: Yashaswini A

Register No: 2020JQCMD070

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 PLAGIARISM REPORT

Title of the project: A STUDY OF CAPITAL MARKET REFORM IN INDIA

Total pages:55
Name of the student: Yashaswini A
Department/Subject: Management Studies
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The content of the chapters and the publications which have been excluded from the software check:
a) Initial pages/preliminary pages, list of tables, charts, graphs, abbreviation
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This is study is based on original result and has not formed the basis for the award of any degree,
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 Table of Contents
Sl. No Report particulars Page No.
1.  Introduction
2.  History of Indian Capital Market
3. RESEARCH METHODOLOGY
 Title of the study
 Introduction
 Statement of the problem
 Need of the study
 Scope of the study
 Objectives of the study
 Research Methodology
 Data Collection
 Sampling Techniques
 Limitations
 Chapter Scheme

4. conclusions

5. References

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 CHAPTER-1

INTRODUCTION

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INTRODUCTION

Market capital refers to the long-term funding market for investment purposes; The capital
market is a display of funds invented for companies; Governments provide opportunities for
investors to turn off their long-term financial resources. The capital market consists of primary
and secondary market segments.

Any market area in which buyers and sellers are involved in the exchange of assets, including
stocks, bonds, currencies and derivatives.

Financial markets are generally described as providing transparent prices, facilitating regulation
and trading, and determining alternative costs for price, price, market forces and security.

Market factors are the interaction of goods or offers and transactions between buyers and a group
of renewable buyers and financial customers.

This time period "market" is sometimes used for more

Strict exchange, regulation that facilitates alternative financial securities, for example:

A stock Exchange or in Finance, Financial Market Facility:

1. The Rising of Capital (within Marketplace)

2.Thewitchofdanger (in the derivative marketplace)

3- Liquidity transfer (within the money market)

4-International alternative (in foreign money market place)

The capital market is the place where investment limits such as bands and stocks are traded.

The primary role of this market is to create investments for investors who have an additional
price range compared to those in deficit.

In 1991, capital market reforms were implemented as part of the structural reforms that included
monetary reforms through corporate liberalization, privatization, globalization and economic
policies and the simplification of foreign exchange regulations.

Meaning of Market Capital Reform in India

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The capital market is not a compact unit, but significantly, decentralized

The system is made up of three main components

1) The stock market

2) Bond market

3) Money market.

It also acts as an intermediary for the exchange of claims based on funds in the form of shares.

Investment decisions made within the framework provided under a

The capital market consists of a group of financial institutions and intermediaries.

It hacetamol promotes potency and growth.

It connects people who want to invest in productive assets with people who want to keep a
portion of their income.

It is a market that provides a mechanism to convert existing savings into productive investment
or to distribute the nation's capital resources between alternatives.

In essence, the capital market serves as a link between the economy and the future, because
current choices over the allocation of capital resources are the primary determinant of
tomorrow's production.

Personal investment and portfolio options are of social importance because the capital market
plays a key role in determining and developing a true production approach.

The efficiency of brokerage is determined by the breadth, depth and diversity of the capital
market.

Until almost two decades ago, most of the family's savings were invested directly in real estate or
deposited in bank accounts and modest government savings schemes.

Equality market - slow

The capital market plays an important role in promoting economic growth.

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Economic growth is achieved by mobilizing long-term savings, which are then invested in the
economy for productive purposes.

Stock markets are part of the capital market in India, which is a well-integrated framework.

Banks and investment funds were created.

It is an insurance company and provident fund company that cater to the various needs of
agricultural capital.

Industrial and commercial sectors of the economy.

In these markets, there are two main activities.

The process of raising new capital and trading in securities that the company has previously
issued. Capital Market Deal Capital. The capital market is often regarded as a market for long-
term financing and investment in long-term products. The term "capital market" refers to the
market for all financial instruments, short- or long-term, such as commercial, industrial, and
government securities. With the economic peace reforms in India, the

THE IMPORTANCE OF CAPITAL MARKETS

 Companies in the private and public sectors are growing by the thousands in these
markets.
 Government, through the Reserve Bank of India.
 These markets help financial institutions raise a lot of money.
 By raising funds, the capital market plays a very important role.
 Capital formation in the country is encouraged by the capital market.
 The investment market will help to expand the industrial sector, as well as the rest of the
economy.
 The capital market provides financing for projects in underdeveloped areas, which will
lead to more job opportunities in the country.
 It also contributes to the growth of stock markets.
 Due to capital markets.

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  People have an alternative source of investment; People should not invest only in bank
units osits, but also in public company stocks and bonds, can help vulnerable units cope
with financial crises.

1.2NEED FOR CAPITAL MARKET REFORMS

 Capital markets allow trading, buy stocks and bonds, and enable Business Storage
Financial Capital to grow. Companies also face less risk and cost to gain financial capital
due to access to well-known markets.
 In 2018, the Securities and Exchange Board of India (SEBI), India's market regulator,
proposed regulatory changes that would have an influence on our markets in the future
year.
 Important regulatory decision points include corporate interoperability, unified
cash/F&O settlements, delivery-based F&O, and cyber security.
 As the regulatory framework for Indian capital markets improves, the government's
policy support is critical to maintaining the present pace of growth and development.
With regulatory backing, policy will be boosted.
 The quantitative release of the combination has not been determined.
 If any tax is to be levied it must be justified.
 Financial markets have been burdened with a series of fees in recent times.
 Much of this is related to the transparency of the transaction, which provides a
comprehensive audit trial, making it easier for the government to collect such taxes.
 Overall, these taxes suppress the expansion of capital markets.
 The government needs a favorable creative environment for the capital market to thrive,
which will help transform India into a country of investors and investors, focusing on old,
fixed-income instruments such as real estate. Risk capital is essential for economic
growth. At the same time, it is important to recognize that markets need liquidity, that
markets cannot be liquid without long-term investor participation, that market
manufacturers and traders play an equally important role, and that the participation of
these players should be encouraged. They are "speculators" rather than discouraging by
rating them.

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 • The 2019-2020 Union Budget must address some of the industry's concerns by
establishing a realistic framework that encourages all shareholders, from investors to
financial institutions and market makers to traders, to engage in markets.
• To prevent imposing double taxes on capital market operations, the government should
propose a pre-negotiation under Section 88E of the Income Tax Act to offer a fair tax
system for market producers and dealers.
In the market, it provides filipto volumes. Without sending any money or provision, STT
paid on exchange transactions classified as company income is eligible for a tax
deduction under Section 88E. As a consequence, the rebate was eliminated, and
professional market traders were taxed twice: once at the STT level and again at the
highest reference rate. Because capital generation in India remains a problem, it is also
necessary to ensure long-term investor benefits.
 Thetaxonoptionsexercise@0.125% onstrikepremium Price-to-distortion pricing option in
capital markets, like all options offered in financial markets, should never be according to
financial theory.
 Furthermore, with the introduction of physical settlement, a 0.10 per cent STT fee will be
charged to both the buyer and the seller.
 Thetoxone exercise options should be increased immediately.
 In most states, corporate taxes are lower than personal taxes, and dividends paid by
corporations to the public are taxed almost equally.
 India has increased the Dividend Distribution Tax (DDT) error despite higher corporate
rates.
 The current tax framework leads to triple taxation on business profits, which are
redistributed and favored for debt capital rather than equity capital because the tax
benefits are clearly on debt on equity capital.
 When the economy experiences the effects of the NPA, the government should consider
immediate course correction by abolishing the corporate dividend tax and taxing the
beneficiaries.
 Since the government is committed to reducing corporate tax rates to 25% and personal
tax rates to 35%, the 10% tax rate on dividends in the hands of the recipient becomes a
fair and reasonable dividend tax.

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  The company may deduct this tax for ease of collection.
 The maximum allowed under Section 54 to invest in CPSEETF must be in order to
promote savings and divert them towards productive assets and rewards of government
money.
 Stamp Duty on Stock Exchange transactions must be canceled because such transactions
are already taxed by STT.
 All of these measures, along with regulatory support and efforts to ensure greater
oversight, fair conduct, ethical policies and protection of investors through the brokerage
sector, provide an immediate impetus for capital market development.

CAPITAL MARKET TOOLS:

Stock market

1- Stock shares

2- Priority quotas

3- Travel kits

4. Bonds

5- Mutual funds

6- General Deposits

7- Derivatives

1.3 CHARACTERISTICS OF CAPITAL MARKET REFORM IN INDIA CAPITAL

MARKET CLASSIFICATIONS:

1- The capital market is divided into two types: primary and secondary markets.

The secondary markets trade in existing or previously issued securities, while the primary
markets deal in new issues of stocks and other assets.

2 - Capital markets are divided into stock markets and financial markets according to the type of
traded securities.
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Capital market in India Features:

The following are some of the characteristics of the commercial market

Connect Savers indent Entrepreneur

Medium and long-term investment deals: - Market capital, market information and long-term
financial instruments and assistance in the development of long-term funds through the market,
companies, industrial firms, financial institutions, long-term firms, domestic and foreign
markets.

The capital market does not act on short-term financial instruments

Such as banker acceptance, deposit certificate and commercial paper.

Intermediaries: The capital market is supported by intermediaries such as brokers, insurance

companies, commercial banks, sub-brokers, collection banks, etc. These intermediaries are
important components of the capital markets.

Market capital is unique to other information about capital in the economy because it is the
accumulation of money and capital information along with capital in equities.

Capital markets are governed by government rules, regulations and policies. When capital
markets operate freely, they are subject to government laws, regulations and policies.

Trading in Financial and Non-Marketable Markets and Securities: - / Capital Market Trading -
Marketable and Non-Marketable Securities. On the other hand, non-marketable securities, such
as term deposits, loans and advances, are unchangeable.

Investors: The capital market has a wide variety of investors, including personal and
institutional investors such as mutual funds and LICs.

Liquidity Availability: As capital market instruments are liquid, investors can sell securities and
get cash whenever they want.

Foreign investors, including individuals and companies, as well as expatriate Indians, can invest
in Indian stocks.

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Additional market: - \ s Open market (OTC) is a financial instrument such as currencies and
stocks that are traded directly between parties.

CAPITAL MARKET TYPES \ MAJOR MARKETS

SECONDARY MARKET

Primary Market: Also known as the New Issues Market, it is the first market place to trade new
securities.

Both the first public offering and subsequent public offerings are covered under this heading.

In the main market, funds are raised through prospectuses, rights issues and private placements
of securities.

Source / Initial Public Offers: In an initial public offering, an issuer makes an offer to a new
investor to join the property family.

In the primary market, the term origination refers to the process of testing, evaluating and
processing new project proposals.

It starts before the problem appears in the market.

It was introduced with the help of commercial banks.

Public Auditions (FPO): An FPO is formed when an already registered company issues new
securities to the public or offers to sell to the public through an offer document.

Distribution: For any issue to be successful, jobs will be distributed to brokers and dealers who
consult directly with investors.

Right Issue (IR): A publicly traded company proposing to issue new securities to its existing
shareholders for a specific reason called a right issue.

Secondary market: The secondary market can be defined as the old stock market, which means
that the securities issued in the main market in the past are traded here.

Trading takes place between investors and after the first release in the main market.

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It involves both the stock exchange and the over-the-counter market.

The following are the products / financial instruments Second Commission Market:

Equity is the ownership of assets that may or may not be burdened by other debts or liabilities.

For accounting reasons, equity is calculated by subtracting liabilities from the value of the
property. Ownership Equity = Assets - Liabilities

DIFFERENT TYPES OF EQUALITY:

 Share stock
 Right Issue / Right Share
 Bonus share
 Preferred stock / preference sharing \ scumulative
 Preferences
 Cumulative
 Change priorities
 Sharing priorities

G-Securities are government securities issued by the Reserve Bank of India (RBI) on behalf of
federal or state governments.

These investments are completely risk free and government supported.

Generally, investors believe that G-Secs are only for banks, financial institutions and large
corporations, but as small investors everyone can participate.

Bonds are a medium to long-term (semi-annual) loan instrument used by large firms to borrow
money at a fixed interest rate.

Come on Debt.

It is not naturally safe.

Debentures (loan notes) are often issued by a corporation, municipality or government agency.

Different type:

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-(1) Coupon Bond: This is a simple bond in which the issuer pays interest to the investor /
holder at a pre-determined period (called a coupon).

Usually two years.

The maturity of a bond is determined by the term for which it is issued.

(ii) Zero-coupon bond: A bond issued without deduction and face value is called zero-coupon
bond.

(3) Convertible bond: A bond that allows an investor to convert a bond into equity at a specified
price is referred to as a convertible bond.

1.4 FUNCTIONS OF CAPITAL MARKET REFORMS

From a general perspective, the money market is a perspective

It actually plays a significant role in the resource mobilization and channel allocation of the
production mechanism in the market through financial assets with long or unlimited maturity. As
a result, capital markets are expected to support the country's economic growth.

Economic growth: Capital markets help accelerate economic growth.

It reflects the general state of the economy.

Money markets help to efficiently distribute resources from those who have surplus capital to
others who need capital.

As a result, we can ensure that it contributes to the development of industry and commerce in
the public and private sectors, which leads to balanced economic growth in the country.

Promoting the practice of saving: With the expansion of capital markets, the tax system and
financial institutions have created opportunities for investors to save more.

They may invest in non-performing assets such as land or gold in the lack of a capital market, or
they may outsource.

Regular fixed security prices: In addition to fundraising, capital markets can help stabilize
securities prices by limiting speculative activity and granting financing to borrowers at a lower
interest rate.
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Availability of funds:

Capital market investments are made on an ongoing basis and both buyers and sellers participate
and exchange their money and assets using the online platform for this purpose, facilitating
capital market transactions.

1.5 IMPORTANCE OF CAPITAL MARKET REFORMS

 The capital market plays an important role

 Savings are mobilized and diverted to productive investments for trade and industry
growth.
 Such as.
 The capital market helps in capital and economic progress in the country.
 Lower We discos High Profile Marketplace.

Important links

If the investors are the borrowers, the charelander offers. Savings that do not spend all of their
income are referred to as "surplus", while borrowers are referred to as "unit deficit". The capital
market serves as a channel between surplus and deficit.

It is a channel that gives extra money to surplus units and deficit units.

The inflow of funds into the personal capital market and the financial / intermediaries perceived
by trade, industry and government.

As a result, it increases the flow of capital to work more efficiently and profitably, thereby
increasing national income.

Additional units receive cash-surplus securities, while deficit units sell assets to raise cash.

Lenders provide direct or indirect funding to borrowers through financial institutions such as
banks, trust mutual funds and mutual funds.

Lenders obtain basic securities issued by borrowers directly or indirectly through financial
institutions.

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The capital market offers incentives to provide interest from profits and transfer funds to
investors.

The result is capital formation.

The capital market, in reality, serves as a market mechanism for persons with savings and those
who want liquidity for productive investments. Gold, jewelry, real estate, luxury spending, and
other expensive and ineffective investment methods

The capital market, developed by OIL, consists of expert banks and specialized brokers, bringing
stability to the value of stocks and securities.

This is achieved by granting financing to those in need at reasonable interest rates and assisting
in curbing speculative activity.

The capital market promotes economic growth because the various companies operating in the
capital market provide quantitative and quantitative directions of cash flow and convert its
multiplication in the allocation of financial resources into financial assets in productive assets.
General industry and drought development.

By establishing banking and non-banking financial institutions, these nations can encourage
citizens to save more. The developed capital market contributes to capital creation and economic
progress by bridging the gap between investors and investors..

THE ROLE OF THE INDIAN CAPITAL MARKET

The capital market is critical to the promotion and maintenance of economic progress.

Businesses may get money. A reliable source of capital for the economy.

It's critical in terms of obtaining cash to invest in productive assets in order to strengthen the
country's long-term economic prospects.

Capital markets play an important role in the Indian economy, and their expansion will assist
raise people's earnings, lower unemployment, and decrease the number of people living in
poverty.

People are becoming more aware of the need to invest in capital markets with long-term goals
that will provide cash flow to those in need of financial support.
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1- Capital formation: The capital market encourages the creation of capital in the nation.

The information capital rate is determined by the country's savings.

Despite the fact that banks are mobilizing funds, they are not addressing the demands of
industry.

Domestic and industrial savings are mobilized via the capital market.

Sateen used his funds for constructive uses. The country's capital is made up of savings and
investments.

2. Economic Growth: Capital‌ market tracks the success of industrial and other sectors in the
economy.

The capital market's main purpose is to move resources from the consumer to the producing
sector. The capital market allows people to borrow money for a number of private and public
purposes.

3- Back-Zone Development: Capital markets fund programs in underdeveloped areas.

It promotes economic development in underdeveloped areas.

4- Employment is created: The capital market creates employment opportunities in the country
in two ways 1) Direct employment in capital markets, such as stock exchanges and financial
institutions; 2) Indirect employment in all areas of the economy as a result of monies provided
for development initiatives.

5. Long-term industrial sector: The capital market provides companies with long-term capital.

The money will be with the company after receiving the money through the issue.

The company is left to its own capital instruments, while stock investors trade among
themselves.

6- Foreign capital production: The capital market allows the production of foreign funds.

Bonds and other securities allow Indian companies to raise funds from international markets.

These foreign exchange reserves are essential for the economic development of the country.

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7. Development Role of Financial Institutions: Various Indian Capital Markets (Industrial and
Financial Investment) Agencies (IFCI), State Financial Corporations (SFC), Industrial
Development Bank of India (IDBI), Industrial Credit and Investment, Non-Investment
Companies in India (ICICI)

They finance, promote and underwrite capital market activities.

8- Investment Opportunities: Members of the public gain good investment potential through
capital markets.

Alternative investment sources such as bonds, stocks and bonds are available to the general
public.

The capital market plays an important role in the following Indian economy:

1- Long-term investments in to mobilization.

2- Extensive ownership of productive benefits.

3- Increasing capital allocation capacity through competitive pricing system.

4 - High quality with enabled mechanism for investing in financial assets.

5- Total cost of transactions and information.

6- Tomacht barrier between investors and companies.

7- Request for Valuation, Financial Instruments, Valuation of Stocks and Dates.

8. Protection from market and pricing risks through derivative trading and default risks through
investment protection fund.

9.Providing Operational Efficiency.

10. Directing the flow of capital in effective ways through investment, withdrawal and
reinvestment.

11. Integration of financial and non-financial industries and long-term and short-term funding.

12. Provide opportunities for risk takers and criminals alike in the case of property rights and
loans.

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CHAPTER-2

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Indian Capital Market Overview - History of Indian Capital Market

Companies and governments may raise long-term funding on the Indian capital market, which is
a stock market.

A stock and bond market where you may purchase and sell stocks and bonds.

Stocks and bonds are two of the most popular ways to make money and invest for the long term.

As a consequence, capital markets relate to the bond and stock markets. The main market (s) and
secondary market (s) in both stocks and debt make up the Indian stock market (s). The primary
market makes it easier to sell freshly issued securities, while the secondary market makes it
easier to trade already issued assets. In the primary market, issuers of securities generate funds
for investment by issuing new securities. They do so for public or private reasons. Securities are
created by two different sorts of issuers. Corporates mostly issue equity and debt instruments
(stocks and bonds), while the government (both federal and state) primarily issues debt
securities. Allows secondary market securities holders to adjust their holdings (portfolio) in
response to changes in risk-return calculations.

The Indian stock market is primarily driven by monsoons, worldwide capital inflows into
equities, and the performance of numerous enterprises.

The National Stock Exchange of India Ltd. (NSE) and the Bombay Stock Exchange are the two
largest stock exchanges in India, and they nearly entirely dominate the stock market (BSE).

The benchmark indexes of two exchanges, the NSE Nifty and the BSE Sensex, are being eagerly
watched by investors.

The F and O (Future Options) segments of the two exchanges are used to trade equity derivatives
such as indices.

Funds, financial institutions, and investment funds, including venture capital, funds, and private
equity, are the leading participants in the Indian stock market.

The Indian market is a satisfying sector for investors.

Indian stocks reward not only long-term and medium-term investors, but also position traders,
short-term swing traders, day traders and speculators.

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In December 2007, the Indian market capitalization (BSE500) was US $ 1,638 billion, or 150 per
cent of GDP, comparable to other developing countries and mature markets.

Debt markets are a very fundamental approach for a developing economy like India to create
finance.

India's Debt Markets Anangstellargestin Asia Firms they deal with include government
securities, public sector companies, other government agencies, financial institutions, banks, and
corporations. The function of credit markets in mobilizing financial resources for government
development objectives is critical. This implies that by issuing government securities, the
government may raise funds at a lesser cost. These are very helpful in putting government
monetary policy into action. It offers a low-risk investing environment and promotes low-risk
investment as compared to stock markets. As a consequence, foreign capital inflows into the
economy. They have a lot of cash on hand and manage their credit well. To decrease risk,
investors are offered the option to diversify their investment portfolios. They developed more
tougher disclosure and auditing procedures, resulting in increased transparency and
implementation of corporate governance concepts. The Indian Capital Market's History

Indian stock markets are one of the oldest in Asia.

Its origins may be traced back around 200 years.

In India, ancient documents of security arrangements are hard to come by.

The East India Company was a large corporation at the time, and its trusts were traded until the
late eighteenth century.

Indian financial markets, particularly the stock market, have a long history dating back to 1861,
when the American Civil War started out.

The opening of the Suez Canal in the 1860s resulted in a massive population rise.

Many corporations and banks lied on the front end to handle road-related financial transactions
during this time.

The Mumbai Stock Exchange was established in 1875, most of which were established under the
British Companies Act.

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It is an incorporated group of stock brokers who started trading in the city under the umbrella of
the corporation.

Business is largely limited to corporate owners and intermediaries and is not of much interest to
the general public.

Due to the American War and the European War, there was a lot of volatility in the financial
markets.

Sir Prem Chandrai (Sir Prem Chandrai) was a great architect.

Indian Capital Market before Independence

The Indian capital market did not develop properly before independence.

The presence of certain companies and the trading of small amounts of securities on stock
exchanges led to the expansion of the industrial stock market. Gold symbol for governments
Silver Semi-government assets are an important part of the capital market.

Indian Capital Market after Independence

The Indian capital market has grown significantly since independence, particularly after 1951,
and the quantity of savings and investment has continuously risen.

The government provides a number of incentives, including tax rebates, to encourage individuals
to save.

Furthermore, several safeguards have been implemented to protect the interests of investors.

The rise of general stock corporations, or firms and firms, is a key measure of market capital
growth.

In 1951, about 28,500 public and private limited firms having a pay-off capital of Rs. 775 crore
spent Rs. 775 crore.

1950s pops and textiles from Tata Steel, Bombay Dyeing, National Ryan, and Kohinoor Mills
are among the favorites.

Since the beginning of speculation, the stock market has been dubbed "Attar."

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In India, the planning process started in 1951, with an emphasis on the establishment of
enterprises and markets. The Securities Contracts Legislation Act of 1956 replaced the Indian
Contract Act of 1872 as the parent legislation.

In 1947, the Controller of Capital Issues (CCI) Act was created to address the issue of stock price
volatility.

Famines and droughts ravaged the nation throughout the 1960s and 1970s, causing declining
trends.

Forward trading, also known as contract clearing, exacerbates these patterns.

By establishing themselves as a dominant group of investors, financial institutions such as LIC

and GIC have helped to recover sentiment. In the markets, there are many golden moments. With
Vera's dilution in 1978, ordinary investors started to engage in the stock markets in a small way.
Multinational corporations operating in India have been forced to decrease their foreign
ownership to below a specific proportion, necessitating the sale of shares or the issue of new
shares. Indian investors that applied for these shares faced a lottery as the CCI decided the
issuance price for shares that were awarded. There are no freebies, and her recipe is quite
meticulous.

Millions of investors found attractive possibilities in the 1980s, resulting in stock market
expansion in India.

A large number of investors entered the stock market.

Since then, the collective involvement of retail investors has taken place in the 1980s, with Mr.
Dhirubhai Ambani often referred to as the "Father of Modern Capital Markets".

The following issues from Reliance Publishing, as well as several Reliance companies, have
aroused much interest.

The participation certificates were distributed by Dhirubhai to create awareness among the
people as they were not known to the general public.

In 1984, Mr. The start of V B Singh's financial budget liberation period came as a surprise.

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In 1985, the abolition of state tariffs and tax cuts led to a boom in the market for new problems,
as well as an influx of companies.

Dr. Minoan Singh Sing has Finance Minister Pharmagenden 1991.

During this decade, new concepts such as simplification and globalization were discovered and
propagated.

In the mid-1990s, commercial stock leasing increased and hundreds of companies, mostly in
Gujarat, were listed on the BSE.

The 1991-1992 financial crisis exposed the weaknesses and inefficiencies of the economy.

It is a fraud that catalyzes change in the stock market.

In terms of technology and market prices, the Indian stock market has changed.

Ketan Barrick presentation and information; Communications and entertainment companies

came to light in the year 2000 due to the emergence of information.

This time it happened on a par with the dot com boom in the US, where software companies are
the most popular stocks.

As a result, it was created around the year 2000.

By launching enterprises, lowering long-term profit taxes, and implementing a short-term sales
tax, P Chidambaram maintained the process of simplification and reform, and the markets
steadily recovered as the index reached the 21,000 mark in 2008.

Ordinary investors should play a vital role in the market as long-term investors, according to
history.

When compared to home savings, retail involvement in India is quite low.

Shares in limited firms and mutual fund units are owned by around 20-30 million people.

The secondary markets employ between 2 and 3 million people, according to estimates.

India will be transformed if financial markets spread outside cities and stock exchange venues.

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In order to disseminate market experience and teach financial planning and market awareness to
investors, both SEBI and retail partners must be engaged.

The Indian capital market has had a long and winding road.

The capital market has lately been doing well, consolidating, maturing, and growing globally.

When it comes to technology... India's capital market is one of the world's biggest.

In India, there are several business news networks, newspapers, and magazines.

Trading over the internet has become a worldwide phenomena.

The Indian capital market is interconnected with the rest of the world.

The capital market under the stock exchange model has a long history dating back to the
seventeenth century.

The Government of India established the Companies Act of 1850 in order to pique investor
interest in corporate securities. The "Native Stock Brokers Association," India's first stock
exchange, was founded in Bombay in 1875.

The "Bombay Stock Exchange" was the name given to it at the time (BSE).

Stock exchanges were formed in Ahmedabad, Calcutta, and Madras in the following years.

The Indian secondary market in the 1990s was made up of regional exchanges, the first of which
was the BSE.

The Indian stock market, however, established a three-tier structure after the 1991 revisions.

Regional stock exchanges, national stock exchanges, and India's over-the-counter exchange are
among them (OTCEI). The Stock Exchange of the Regions

The Ahmedabad Stock Market (ASE) was established in 1894 as the first regional stock
exchange.

The Calcutta Stock Exchange (CSE) was founded in 1908, and succeeding years saw the
establishment of regional financial markets in Calcutta, Madras, Ahmedabad, Delhi, Hyderabad,
and Indore.

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Coimbatore (Coimbatore Stock Exchange) and Meerut (Meerut Stock Exchange) have recently
established regional stock exchanges, bringing the total number of regional stock exchanges in
India to 22.

NATIONAL STOCK TRADING

 The NSE was founded in 1993 as a technology-driven exchange.

 It began trading securities in the money market in 1994, and it has expanded since then.
 As a result, the financial market segment's area of commercial activity was likewise
increased. The NSE was established to offer a national trading platform for all sorts of
securities. Effects of the stock market and government regulation The NSE has
revolutionized the Indian capital market and pushed the stock market closer to investors'
homes during its brief existence. It has created a nationwide automated screen-based
business system to ensure that all investors have equal access.
 The Over the counterexchangeofIndia (OTCEI) was founded in 1990 under the
Companies Act of 1956, but it was subsequently granted a stock exchange license under
the Securities Contracts Regulation Act of 1956.
 Trading began in 1992 and was created after the NASDAQ, the American OTC stock
exchange.
 Its goal is to facilitate the financial market for small businesses.
 OTCEI offers a nationwide screen-based trading system that serves as a meeting place for
buyers and sellers to bargain at an affordable price.
 Traders can trade new and secondary securities in the market here.
 It is a single window exchange that provides an easy, transparent and efficient way to
participate in the stock market.

Factors Affecting the Capital Market in India

There are various factors that affect the capital market.

Some of the factors that affect capital markets are as follows: - \\ Performance of local
companies:

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- The success of companies, or their profits, is one of the factors that have a direct impact on the
capital market of a country.

Weak corporate profitability indicates that the economy's demand for products and services is
declining due to low per capita income growth.

Low growth, unemployment, medium, slow growth, backward, geometric, advanced, variable,
slow growth, slow growth, backward, slow growth

As a result, weak corporate earnings indicate normal or poor prospects for the short-term
economy.

In such a scenario, investors (domestic and international) are afraid to invest in the capital
market, which leads to a bear market.

Their positive impact on corporate earnings and the stock market will fall under adverse
conditions.

Actually the company’s current financial earnings for the April-June quarter.

TCS, Infosys, MarutiSuzuki, Bharati Airtel, ACC, ITC, Wipro, HDFC, Binancement, IDEA,
Marico Canara bank, Piramalhealth, Indiacements, Ultratech, L&T, Coca-Cola, Yes bank, Dr.
Reddy's Labs, Oriental Bank of Commerce, Ranbaxy, Fortis, Shreement, etc.

Good condition. This growth indicates that the Indian economy is on the upswing with the recent
rise in the stock market (in the Sen sex and Nifty) (July 13 - July 24).

SEBI. OVERVIEW

Meaning of SEBI:

- Having SEB I mean in any market is undesirable

Activities are not easily allowed.

SEBI was established by the Government of India in 1988 and has been given legal powers.

It was passed by the Parliament of India in 1992 with SEBIact1992.

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SEB is headquartered in Bandra Kurla Complex, Business District, Mumbai and has regional
offices in North, East, South and West, New Delhi, Kolkata, Chennai and Ahmedabad
respectively.

The power to regulate regulatory capital issues prior to the existence of the SEB; The Authority
Capital Issues (Regulation) Act is taken from 1947.

Initially, SEBI was a corporate entity with no constitutional power.

However, in 1995, the Securities and Exchange Board of India, 1992 was given additional
legislation by the Government of India to amend the International Environmental Accounting
Act (SEB).

In April 1988, SEBI was established by the Government of India to replace India as the leading
regulator of capital markets in India.

It is not managed by The SEBI members who have the following:

Two members, i.e. officials of the Ministry of Finance.

A member of The Reserve Bank of India.

There are 5 members nominated by the Union Government of India, with the exception of
members with a small number of members.

SEBI Bhavan, Bandrakurla Complex, Bandra East, Mumbai 400051, Kolkata, Delhi, Chennai,
and Ahmedabad are the regional offices for SEBI.

It recently launched offices in Jaipur and Bangalore, and it aims to build offices in Bhubaneswar,
Patna, Kochi, and Chandigarh in the 2013-2014 fiscal year.

SEBI FUNCTIONS

The Securities and Exchange Board of India (SEBI) mainly protects the interests of stock
market investors.

Encourage the growth and control of the stock market.

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SEBI is a regulatory and registration platform for stock brokers, sub-brokers, portfolio managers,
investment advisors, stock transfer agents, bankers, commercial bankers, trust custodians,
registrars, insurance firms, and other related persons.

Depository activities are regulated by participants, custodians, international portfolio investors

and credit rating agencies.

Insider trading in securities means deceitful and unfair trading activities in the stock market are
prohibited.

Make sure investors get their education from brokers in the stock markets.

Oversees significant stock purchases and corporate acquisitions.

SEBI is responsible for research and development to ensure that the stock market is always
efficient.

SEBI POWER AND ENERGY

Prohibits submission of Power of SEBI to Regulator or, display of documents / advertisements,

solicitation of funds for issuance of securities:

SEBI may take action to protect investors without prejudice to the provisions of the Companies
Act, 1956 (1of1956).

SEB Credibility is a semi-legal judgment regarding fraud and other ethical practices in stock
markets.

This will help keep the stock market fair, transparent and accountable.

Semi-Executive: SEBI has the power to enforce the rules and regulations in force, as well as to
take legal action against those who violate them.

If she encounters violations of the rules, she is also entitled to investigate books of accounts and
other documents.

SEBI should stand by the structures and regulation that protect the interests of investors in semi-
legislative capacity.

Its terms include insider trading rules, listed obligations and disclosure requirements.
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These created misconduct in the Gulf.

Regardless of the powers, the results of SEBI activities are still subject to review by the
Securities Appeals Court and the Supreme Court of India.

Stock brokers, sub-brokers and stock transfer agents must register.

Broker, Sub-Broker, Participating Transfer Agent, Bank Issuer, Trustee, Fiduciary, Registrar,
Merchant Bank, Guarantor, Portfolio Manager, Investment Adviser or other intermediaries
affiliated with the stock exchanges may not buy or sell securities. They will receive a certificate
of registration from the Council under the following terms:

Furthermore, any certificate of registration received immediately prior to the entry into force of
the Securities Exchange (Amendment) Act 1995 shall be deemed to have been obtained from the
Board of Directors in accordance with the laws governing such registration.

However, prior to the commencement of the Securities Act (Amendment), a person is not
required to obtain a Certificate of Registration 30, prior to the commencement of such Securities
Act, 1995 as a Depositor, Participant, Guardian of Securities, Foreign Institutional Investor or
Credit Rating Agency in the Securities Market. Securities may be bought, sold or traded on the
stock market until the terms are set out in Clause (d) of (2). , Anything

The Securities Acts (Amendment) Act requires a Certificate of Registration (Registration) Act,
prior to the commencement of the Securities Exchange Act 1995 (any Copyright Equity Capital)
or any person who causes or causes sponsorship or transfer of any classified investment in the
Securities Exchange).

Such an initiative shall continue to operate in accordance with the provisions previously made
under Clause (d) of subsection (2) of section 30.

Capital market Solutions

Over the past few years, SEBI has implemented the following capital market reforms:

1. The Securities and Exchange Commission (SEBI) has made proposals to the stock exchanges
to make their governing bodies more broad-based.

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According to these standards, the Board of Directors of Exchange must have five elected
members, not more than four members recommended by the Government or the SEBI, and three
or fewer members nominated by the public.

2- The Securities and Exchange Board of India (SEBI) has set up a system for registering brokers
such as brokers and sub-brokers.

Registration is based on specific eligibility requirements such as partial affluence.

3. SEBI has enacted laws to make the interaction between the customer and the broker more
transparent, as well as to separate the accounts of the customer and the broker.

4. SEBI has implemented a periodic testing system of the stock exchange.

SEBI inspected 8 stock exchanges in January 1993.

5. Indicates the exchange of SEBI shares at the end of the contract based on the differences
between the financial projects and the documentation and the amount to be paid in the media to
ensure that the monitored company submits an annual statement showing the differences
between their allocations.

As a result, shareholders can compare performance and promise.

6 - The European Bank certifies that documents have been submitted to list the securities (such
as shares and ventures) on the stock exchanges to prove that the company has material disclosure
in the presentation of the applicable document.

7- Show mutual funds and documents for previously released chemicals required by SEBI.SEBI.

It helps investors in budgeting the performance of mutual funds. As part of its investment
activities, mutual funds are now allowed to underwrite issues. SEBI monitors mutual funds on a
daily basis to meet these requirements.

8- Introduce the commercial banking system for the general framework.

With regard to issue pricing and fixing of premiums, commercial banks must adhere to the SEBI
Code of Conduct.

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9- Capital Issues had to lose control over the price and premium of shares to be issued by the
Controller's Office.

On the other hand, companies can approach the capital market only after obtaining approval
from SEBI.

10. The SEBI has enacted a law to make public statements on public issues to ensure fair and
accurate disclosure.

When making public statements, companies are expected to disclose all important facts and
private risk concerns related to their activities.

11 - European Central Bank - Emergency Guidelines - An appropriate lesson for new problems.

Preferential formula, 20 per cent exchange of funds, 20 per cent domestic financial institutions,
24 per cent foreign investors and companies and 10 per cent issuing company employees,
according to the standards.

The remaining 25% is distributed to the general population.

However, 25 per cent of the total issues must be for small investors applying for up to 1,000
shares of 50 per cent of the minimum public offer. The non-subscription category can be easily
replaced.

12- The practice of giving preference allocations to shares at prices not linked to the current
market price has been discontinued and SEBI has set new rules for this purpose.

13- Get back the Egyptian bank Money Issue Guidelines.

14- The Securities and Exchange Board of India (SEBI) enacts laws governing the purchase and
takeover of large shares.

15- SEBI banned the bad system in December 1993 as part of the process of formulating
transparent rules for trading on the stock exchange.

16- The European Business Bank (EBI) has given access to the Indian capital market after
foreign institutional investors register with it.

By the end of January 1995, SEBI had registered 286 foreign investment firms.

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17. SEBI has issued regulations for primary and secondary market intermediaries, placing them
under its regulatory framework.

18. SEBI has taken several steps to promote the trading of immature securities by creating a
network of depositors.

This eliminates the risk of late delivery as well as counterfeit or counterfeit stocks.

Warehouses provide a system for registering securities ownership details in the form of a
warehouse market while avoiding the physical management of securities.

As a result, trading of intangible securities is important for securities.

19. EBI Putinan short sale of securities on demand on June 15, 1998

This explains the additional instability

Since July 6, 1998, margins (AVM) have been reduced.

The daily price range has been reduced from 10% to 8%.

To create a system of graded margins, the 25% weekly range is ignored.

Derivatives ranks 20th on the trading list.

LC Key Recommendations Gupta Derivatives Trading Commission approved by SEBI.

Derivative contracts under this provision are classified as "securities".

Derivatives trading, or trading in stock indices, provides a tool for investors to manage risk and
help improve liquidity in Indian secondary markets.

21. At the time of launching the public release, SEBI provided some general status to the
infrastructure companies.

They will be exempted from public offering of at least 25% shares, 90% minimum subscription
and at least five shareholders per rupee. Offer 1 lakh.

22- The Securities and Exchange Board of India (SEBI) has enacted laws to regulate the buy-
back of shares of Indian companies.

Repurchases are allowed for capital restructuring but not for treasury operations.
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23. SEBI gives companies the opportunity to set the equivalent value of the shares they issue,
with a pre-determined value of Rs. Rs. 10 and Rs. 100

24. Restrictions on the SEBInorm forIPO program have been relaxed for "ability to pay" rather
than "actual dividend" to encourage initial public offerings (IPOs).

SEBI OBJECTIVES

The main objective of SEBI is to protect the interests of all parties involved in the process.

Regulating the livestock market.

Objectives of SEBI: To oversee fisheries exchanges.

Protecting other things for investors.

By maintaining a balance between legislative action and self-regulation, fraudulent behavior can
be avoided.

Establishing a code of conduct for brokers, underwriters and other brokers.

SEBI. STRUCTURE

SEBI Board Members.

The Board consists of the following persons:

The Central Government of India appoints a Chairperson to the Board of Directors.

A Board Member - Appointed by the Central Bank, Reserve Bank of India.

Two members of the Board of Directors - Disqualification from the Ministry of Finance.

Five members - elected by the Central Government of India.

In addition to managing the Board of Directors, the SEBI President is also responsible for
Communications, Vigilance and Internal Inspection.

The organizational structure has many members at all times.

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Many departments are assigned to be managed by a full staff.

Each department is individually headed by an Executive Director.

Executives are responsible for reporting to specific full-time members.

The organizational structure of SEBI includes more than 25 divisions, including Foreign
Investment and Guardians (FPI & C), Corporate Finance Division (CFD), Information and
Technology Division (ITD), and Financial and Political Analysis Division (DEPA-I, II, and III).
Investment Management Division, and Legal and Accounts Division. National Institute

In 1988, SEBI was established as an illegal agency to oversee stock market activities.

SEBI was transformed into a legal entity with independent powers by SEBIactof1922.

The Act empowers SEBI to regulate capital markets, not only overseeing but also enforcing
regulations.

SEBI act 1992 covers the following areas:

Powers and Functions of the European Union for Investment Funding on the Board of Directors

Legal definition of SEBI

SCOPE OF UNION POWERS

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SEBI must also adhere to the SEBI set of standards, which apply to areas such as: Employee
Stock Option schemes

Disclosure regulations and investor protection

Legal policies

Anti-money laundering habits

List and list of securities

Last overseas trading start

2015 Zeblador. Terms

One of SEBI's most important responsibilities is the list of obligations and the Disclosure
Regulations (LODR).

The rule sets out the level of openness and exposure required for companies that trade openly.

The law also revises the listing agreement, which must be concluded between the exchange and
the listed companies, as well as mandatory disclosure standards.

The Agreement contains terms and conditions relating to the governance, disclosure and
requirements for maintaining the company listing status.

However, the current law on LODR, which came into force in 2015, aims to consolidate all
previous revisions into a single document that standardizes the law in all segments of the capital
market.

SEBI Regulations (LODR) 2015 are as follows:

Advertisements and requirements to be identified by the Compliance Officer for the listed
business

List of consolidated liabilities of listed companies

Typical liabilities of certain types of securities

Separate IPO and Post IPO Habits

Fundraising activities for corporate communications

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Develop schedules to announce the exchange of certain events

Bringing the management system of small and medium enterprises under SEBI Regulations
(LODR)

SEBINEW. MARGIN RULES

In September 2020, the SEB implemented new margin rules.

The move is aimed at increasing transparency and preventing brokerage firms from
misappropriating client assets.

The new margin regulations were due to take effect on June 1, but were postponed due to the
spread of the epidemic and the implementation date was changed to September 1.

Marginal rules by SEB, including:

The pledged wealth is the same in the investor's account.

Since stock accounts do not change, the benefits of corporate events go directly to investors.
Advance set margins by brokers on the stock exchange

Clients may have minor requirements by the end of the day, starting from the next day, POA will
not be assigned in favor of brokers

Under the previous arrangement, brokers could ask for an attorney from investors to make
decisions on their behalf. The BuyTodaySellTomorrow (BTST) Margin Commitment, which is
designed independently for investors who require margins, will no longer license licensed stocks.
Investors must agree to the delivery of their shares (T + 2 day is the general settlement term).
Typically, investors use intraday profits to meet margin requirements, which have now been
changed by the new law. Only if the net available margin is equal to or greater than EBTSTtrade
can be done with more than 20% of the transaction amount.

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CHAPTER-3

Page 44 of 55
The latest reforms and the economy

25 Recent Developments in the Indian Capital Market

Agricultural and industrial finance has grown steadily since the nationalization of commercial
banks.

NABARD, Exam Bank, SIDBI and other new financial institutions have been set up to finance
the capital market in the country. Some operational improvements have been made to the
existing development banks, which have enabled them to finance additional industrial activities
in the country. Mutual funds set up in public and private sector institutions have also helped in
the performance of the Indian capital market..

Below are 25 improvements in the Indian capital market that have helped India to compete with
industrialized nations around the world.

RECENT CHANGES IN THE INDIAN CAPITAL MARKET

1- Financial market liberalization of Indian capital: Economic liberalization in India based

on regulation, liberalization, and privatization of the public sector.

As a result, numerous public-sector enterprises' shares were accessible to the general public.

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The former industrial strategy of the government in regard to private investment or the private
sector. However, many public-sector enterprises have been privatized, and the shares are now
accessible for public investment. India's Steel Authority is one example (SAIL). ONGC, BHEL,
OilIndiaLtd, GasAuthority, and other significant public sector enterprises are not part of
theNavarathnacs. TATA has just purchased VSNL stock.

2- Encouraging the establishment of more private sector banks: The establishment of new
private sector banks has led in individuals investing in these banks' shares on the Indian capital
market.

According to the government, foreigners may now own up to 74% of India's private sector
banks.

This not only made it easier to start new banks, but it also made it easier for existing banks to
consolidate.

Take the combination of Madhura Bank and ICICI Bank, for example.

3- Mutual Fund Marketing: The Indian capital market has benefited from mutual fund
promotion by both nationalized and non-nationalized banks.

They assisted in locating the target audience.

A tax-saving method is shown by the UTI monthly income scheme.

Investments in national bank-sponsored mutual funds have surged.

Mutual funds are governed by SEBI, and banks are obliged to publish their net asset value every
week by supplying data to prominent periodicals.

Some mutual funds' present position is concerning, since their investment value has fallen below
the face value of these instruments.

People are less inclined to trust mutual funds as a consequence of this.

Take the UnitTrustofIndia as an example.

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4- NRI Investment Regulation: The amendment of the Foreign Exchange Management Act
(FEMA) by the Foreign Exchange Regulation Act (FERA) gives new incentives for non-resident
investors.

The percentage of NRI investments in Indian enterprises has risen from 5% to 24%.

India experienced a serious foreign currency shortfall in 1991, prompting the Finance Minister to
take a variety of steps to increase the country's foreign exchange reserves.

This raised the maximum investment limit for any NRI in any Indian firm from 5% to 24% of the
paid-up capital.

Foreign investment into India has surged as a result of this.

Foreign financial organizations are encouraged to make direct stock market investments in India.

During the Indian corporate insurance term, ownership shares are decreased from three to one
year.

Profits from diluting the shares will be taxed at a rate of 20%.

5. Foreign Direct Investment: / Foreign Investment Promotion Council founded with the
Ministers of Industry, Finance, and External Affairs, particularly in the sphere of foreign direct
and foreign direct investment, which is prohibited.

FERA is a firm in which foreigners own 40 percent of the shares, according to the Foreign
Exchange Regulation Act.

This restriction has been lifted, and foreign firms may now own up to 51% of the company.

For example, Colgate Pol mo live boosted its foreign ownership interest from 40% to 51 percent.

As a consequence, more foreign money will be allowed to enter the Indian stock market.

The Foreign Exchange Management Act has since been revised, and it is now known as the
FERAct (FEMA).

7- Online Trading in Indian Capital Market: Computerized trading systems are used by
several of India's top stock exchanges.

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Online traders and absolute brokers.

The public and brokers can always check the current market price thanks to computer terminals.

It has the ability to prevent imaginary action.

8. Online trading makes market transactions more transparent: Online trading is done using
a computer, and brand transactions are transparent. People may learn about current market values
at any time, thus brokers can't afford to lose money for their customers. It is no longer feasible
for market brokers to manipulate the starting and closing prices of shares.

National Securities (#9)

Prices of traded stocks

The Bombay Stock Exchange was brought under control with the advent of the National Stock
Exchange, which not only increased the market but also brought it under control.

This made it possible for all of the world's major corporations' shares to be traded on a single
market.

As a consequence, the genuine corporate image and its true power are available to the People.

10-Sensitivity Index - Indian Capital Market: s Index Number Calculation - Numbers - Change

Developed a Sensitivity Index based on the 30 biggest corporations that influence share size and
market value.

The sensitivity index is a measure of current market circumstances as well as the market's
meeting criteria.

Circuit-Breaker (#11) Wild Fluctuations in the Indian Capital Market Market for Livestock

Because it was designed by Harshad Mehta, it is impossible to get another stored camera.

The Bombay Market Circuit Breaker is a trench-off switch designed by Purpose Purpose.
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When the market index increases beyond 10%, the circuit breaker trips, and all market activity
comes to a halt.

It lasts for 30 minutes until the market resumes trading.

This might result in a drop in the stock price.

The stock market is open for two hours each day, and if any of the circuit breakers are canceled,
the market is closed for the first hour and a half after trading begins.

Because market activity is not expected to restart today, stock values will decline.

Stock speculating is no longer a viable option.

The establishment of the Restrictions Ordinance has enhanced transactions since the 12-year
anniversary of the submission of shares in the Indian capital market.

The technique by which the physical distribution of shares is not chosen is known as distribution.

This is referred to as a "script less trade."

Individual investors' shares are kept by a joint stock corporation, and they are given a passbook.

Purchases or stock purchases are recorded in the pass book. Gem-related businesses, as well as
information, transaction preparation, final remarks, and history. This prevented the shipment of
empty containers. It not only records every market transaction, but it also gives the government
money in the form of registration fees and stamps. Empty transfers are not permitted, and short-
term stock speculation is prohibited

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13.Market Makers in Indian Capital Market: The placement and demand markets set the
prices of enterprises.

There are market makers who ensure that firm shares are available and priced correctly. Creating
market producers prevents brokers from manipulating stock prices.

14- Securities and Exchange Board of India (SEBI): In the Indian capital market, the
establishment of the Securities and Exchange Board of India (SEBI) was a significant move.

Not only has SEBI replaced the Controller of Capital Issues, but it has also brought stability to
all stock market activities.

15. Re-registration: All brokers and sub-brokers must re-register with SEBI, and any
complaints filed against them will be examined, with penalties levied if found guilty.

16.Over The Counter Exchange of India (OTCEI): This exchange, also known as
OverTheCounterExchangeofIndia, was founded for the benefit of newly promoted enterprises
and has lesser requirements (OTCEI).

Not all newly founded businesses have the option to list their stock on existing stock exchanges.
These firms' only capital should be at the bottom, and there should be a separate structure to
accommodate the companies' shares. These newly promoted enterprises will profit from the
establishment of OverTheCounterExchangeofIndia (OTCEI).

17- Commercial Bank: Commercial banks that are subsidized are able to provide to the cattle
market. SEBI also supervises businesses and their activities. They not only aid enterprises with
capital planning, but also with the acquisition of shares by overseas investors. Banking dealers
are assisting certain Indians in obtaining new cash, which is bringing financial markets to life. It
also assists newly founded businesses with syndication and stock issue.

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Non-banking financial companies (NBFCs) are non-financial commercial enterprises that are not
regulated.

The Reserve Bank of India has imposed further restrictions on its operations.

New Capital -

For funding, a special law has been enacted that sets the maximum limit for bidders at 40%.

19.Forwardtradingin IndianCapitalMarket: Forward trading has been successfully extended since

June 9, 2000 with the introduction of BombayStockExchangeonatrialbasis.

It helps investors identify the true colors of existing companies.

Badloys changes the contract from one period to another, where the buyer who is indebted to the
seller does not execute and maintains the contract for any purpose and pays a bad fee if objected
(determined by the exchange of shares).

Currently, SEB informal transactions are prohibited.

21. Restrictions on Fund Investment: There are limits on other futures funds in the market.

They cannot invest more than 10% of their investment capital in any one company and mutual
funds should not invest more than 10% in one company Issuance of Company Shares.

22- Public Education: The press and mass media have played an important role in promoting the
Indian capital market and continue to highlight securities prices on a daily basis.

Mutual funds and commercial banks are required to allocate a percentage of their assets.

To inform the general public about the developments in the Indian financial market.

23- Government Stock Market: In the wake of the stock market crash, the Central Government
has banned the trading of corporate securities as well as government securities.

In other words, government securities have their own markets and are not traded along with
corporate securities on the exchange.

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When he was the Finance Minister, Dr.

24- Future Trading in Indian Money Market: Future Trading is an agreement to buy or sell a
financial asset at a specified price at a future date.

The agreement allows both parties to transfer from one person to another due to price
fluctuations.

With this it was minimized.

In every futures contract, there is a seller and a buyer.

And if one person makes a profit from the business, another person may try to reduce his loss in
another contract.

As a result, the futures market allows traders to minimize their risks and losses when trading
financial products.

There are different forms of ‘financial future’.

25- Penalty for Trade Insurance in the Indian Capital Market: The SEBI Act was amended in
2002 to make insider trading a clear violation.

The penalty rate is Rs. 1 lakh per day, up to a maximum of Rs. 25 crores.

26- Settlement Period in Indian Capital Market: After removal of the replacement, SEBI adopts
T + 2 approach .....- To settle transactions in the Indian Capital Market.

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As a result, all transactions in the capital market must be completed within two days after the
trading day.

All policies are optimized in all stock markets in India.

If the current trend continues, we can expect our stock market to be more correlated with the
markets of industrialized nations in the future.

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 CONCLUSION

Capital market is playing its important role in the development of Indian economy. Indian capital
market suffered bruises in the last part of the nineties owing to the manipulative trade practices
of unscrupulous brokers and other participants, it has been witnessing fine times in the recent
past, thanks to many favorable conditions contributing to it. With the kind and the quality of
human skills possessed by India’s financial Industry, it is quite imperative that there is need to
provide sound capital foundation for the stock market. However, it is important to note that the
stock trading is not a panacea for all that ails the Indian stock market if the recent experience of
some of corporate and banks abroad is of any indication. It is to be noted with happiness that
Government of India has successfully introduced the derivative trading in the stock exchanges.
There are very many issues, which require immediate and urgent attention of the planners
concerned.

Bibliography

1. Majeed Pasha and T.N Murthy, “Financial Institutions and Services” SciTech Publications,
Chennai, 2010, pp 13.1-13.17
2. Simcha, S.L.N. The capital Market of India, Varo & Co., Bombay 1960.
3. SEBI Report on reallocation of shares in the matter of IPO irregularities,2007
4. Machiraju, H R (1995): The Working of Stock- Exchanges in India, New Age International
Publishers, New Delhi.
5. Bhole, L.M. Financial Institutions and Markets, TATA McGraw Hill, New Delhi, 1999,
pp.376-395.
6. Survey Report of NCAER-SEBI (2011)

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