Indian debt market: Need for development

Why there is need for developing the Indian debt market when there are many others issues to be sorted in the financial sector like derivative market, new products etc.The reason particularly is changing dimension of Indian economy that have arises over the last 17 years with the starting of economic reforms.

The Indian debt market is one of the largest markets in Asia and largest in South Asia. It has relatively big size in terms of market capitalization, trading volumes and outstanding securities. Debt market movement works as a leading indicator since it provides risk free rate of interest which has multiplier impact in the market.

Game changer in Indian Financial Market: The Current Decade

Introduction

The primary purpose of this article is to cover innovation in financial product, introduction of new financial product in this decade and regulatory change in the same period which changed the shape of Indian financial market. We have seen that in the last few years, many steps were taken by regulatory body to do such thing which made Indian financial market at par to world developed financial market. So current decade is really considered as one of the major decade in setting up milestone for India in area of finance.

The Existing Takeover Code

Takeover Code concerns itself with the various regulations that an investor has to follow in case he acquires a substantial stake or control in the company. (Acquiring Control and Acquiring a substantial stake may not necessarily be the same because a substantial acquisition may take place even when there is no change in control. For example an investor acquiring 15% stake in a company (a substantial stake) may still not acquire control because of the presence of another investor with 50% stake). The Code is detailed in SEBI (Substantial Acquisition of Shares and Takeovers) Regulations 1997. These are also called as ‘SAST Regulations’ or ‘Takeover Code’. These govern only the listed companies. Under these regulations, if an investor acquires a substantial stake or control in the company (hereby referred to as ‘Trigger points’), then he is compulsorily required to publicise this information by way of a ‘public announcement’ followed by an ‘open offer’ for buying a certain minimum public holding. The minimum limit of making an open offer stands at about 20%. In other words the acquirer will make a public offer to buy a certain percentage (minimum 20%) of the equity capital of the company.

EU BANK STRESS TESTS

The much talked about test, the EU test of banks' ability to withstand financial shocks, is being highly criticized as too easy after only 7 out of 91 failed. European Union policymakers and regulators voiced relief at results but some market analysts and many media commentators derided the whole exercise in which all listed banks passed as lacking in credibility. There was skepticism about EU regulators' conclusion that banks need only a total of 3.5 billion Euros ($4.5 billion) in extra capital.

Only five small Spanish banks, Germany's state-rescued Hypo Real Estate and Greece's Atebank failed outright. More than a dozen others scraped through with just over the required 6 percent of Tier 1 capital in the most stressful scenario and are likely to come under market scrutiny. However, the wealth of data disclosed by banks representing 65 percent of assets, and the commitment of banks, regulators and governments to follow-up action may well outweigh doubts about the stringency of the tests.

Maruti Setting trends for its competition

Zoom away into the future that seems to be the motto of the Automobile manufacturers of India today. With the advent of technology, rapid changes are being made in the automobile industries which have lead to tremendous increase in the profits of these organizations. Updating outdated management system can reap significant benefits for the Automotive Industry. With the implementation of e-resource ERP, the most reliable, low-cost ERP solution available in the Indian market today, companies are producing products which can effectively compete in the International market and at the same time eliminating problems that occur in the areas of management, administration, production and operations.

Financial Inclusion in India

Financial inclusion is delivery of banking services at an affordable cost to the vast sections of disadvantaged and low income groups.As banking services are the nature of public good,it is essential that availability of banking and payment services to entire population without discrimination is the prime objective of the public policy.

Concept of Money

The population of High Net worth Individual (HNI) in India has increased from 84,000 to 1.26 lakh. An individual is considered to be HNI if his total investible wealth is $ 1million. If we take an estimate of Indian population to be 1.25 billion it comes to 0.01008%. Good isn’t it showing the enormous amount of progress that we have made?

I have not written this piece to praise or condemn India’s growth. The thing that worries me is that if this is how we measure growth and development we are on a road to perdition. We need to look towards growth in measures more than monetary. We need to look beyond the tradition ways of wealth. I will here try to analyze the concept of money.

Differential Voting Right Shares – Playing Different Roles

As the name suggest, Differential Voting Right (DVR) shares provide different right of ownership as compares to ordinary shares. They have been allowed to issue in India since 2001.Since then only 4 companies had issued shares with DVRs shares.

Shares with DVRs shares are considered as a new product in the equity market. There have been numerous benefits both to the companies and to the investors who do not exercise their voting rights. If we look from the investor point of view, then they can earn better return in lieu of surrendering their voting rights whereas a company can issued equity without diluting their equity stake.

Challenges for Reserve Bank of India

The market is waiting for action of RBI on its coming annual monetary policy on 20nd April 2010.Analysts expecting that firm actions to be taken by RBI against inflation.

India right now has one of the highest inflation rate in the world and RBI seems to be behind the curve despite it started action of exiting its monetary policy ahead of other central banks.As per the weekly data by The Economist,out of 42 major economies only Venezuela seems to have more pressing inflation problem than India.

Are we Ready for Many Small States?

Whenever I get a Call from my Friends at Hyderabad, Only two common Questions , How is Cold at Delhi, How is your MBA Going and they receive every time only a common question from this side, and that is pretty obvious one. Yes, your guesses are very much true, “What has happened with regards to Telangana”. Many of my friends at Delhi ask me “Hyderabad is part of?” I am really bewildered to answer this, because I myself is not sure is it part of Andhra, or Telangana, or will it be a Union territory.