Capital Markets

Cover
Contents
Chapter 1 Financial Markets
	Definition
	Location
	Role
	Functions
	Constituents
	Financial Instruments
	Indian Financial Market
	Global Financial Markets
	Review Questions
Chapter 2 Capital Market Money Market
	Indian Capital Market—Evolution and Growth
	Constituents of Indian Capital Market
	New Financial Institutions
	New Financial Instruments
	Capital Market Doldrums
	Measures of Reactivation
	Measures of Investor Protection
	Recent Initiatives in the Indian Capital Market
	Indian Capital Market—Major Issues
	Rebound in Indian Capital Market
	Review Questions
Chapter 3 Capital Market Instruments Meaning
	Types
	Preference Shares
	Equity Shares
	Non-Voting Equity Shares
	Convertible Cumulative Preference Shares (CCPS)
	Company Fixed Deposits
	Warrants
	Debentures and Bonds
	Global Debt Instruments
	Review Questions
Chapter 4 Regulation of Indian Capital Market Genesis
	The Factors
	The Regulatory Framework
	Committees on Regulatory Framework
	Review Questions
Chapter 5 Derivatives Market
	Meaning of Derivatives
	Growth of Derivatives Market—Factors
	Limitations of Derivatives Market
	Functions of Derivatives Market
	Categories of Derivatives
	Forward Contract Vs. Futures Contract
	Option Based Derivatives
	Futures and Options—Participants
	Benefits of Derivatives
	Risks in Derivatives Market
	Capital Standards for Derivatives
	Regulating Derivatives Market
	Advent of Derivatives Market in India
	Review Questions
Chapter 6 SEBI—Functions and Working
	Genesis
	Features of the SEBI Bill
	Objectives
	Management
	Powers and Functions
	Regulatory Role
	Role and Relevance
	Review Questions
Chapter 7 Investor Protection
	Loss of Confidence of Small Investor—Causes
		Rights of Investors
		Facilities by BSE
		Ombudsman
		Review Questions
Chapter 8 Insider Trading
	Nationale
		Insiders—Categories
		Insider Information
		Connected Persons
		Need for Control
		Prohibition of Insider Trading
		Investigation by SEBI
		Action by Corporates
		Review Questions
Chapter 9 Stock Exchange
	History of Stock Exchanges
	Meaning
	Definition
	Functions/ Services/ Features/ Role
	Stock Exchange and Commodity Exchange Distinguished
	World’s Stock Exchanges
	Organization Structure
	Mode of Organization
	Stock Exchange Traders
	Jobbers and Brokers
	Jobbers Vs. Brokers
	Weaknesses
	Regulation of Stock Exchanges
	Steps in Stock Trading
	Mechanics of Settlement
	Systems of Stock Trading
	Specialists
	Recent Developments
	Interconnected Stock Exchange of India (ISE)
	Indonext
	Review Questions
Chapter 10 Indian Stock Exchange
	The Bombay Stock Exchange (BSE)
	For New Companies
	For Companies Listed on Other Stock Exchanges
	For Companies Delisted Already and Seeking Relisting of this Exchange
	Safety of market
	Opportunities for Foreign Investors
	Shortages and Objections
	Derivatives Trading
	Calcutta Stock Exchange
	The National Stock Exchange of India Limited (NSE)
	Review Questions
Chapter 11  Primary Market
	NIM and Secondary Markets—An Interface
		Services of NIM
		NIM Vs. Secondary Market
		Review Questions
Chapter 12 Methods of New Issue
	Methods of Marketing Securities
		Stock Option or Employees Stock Option Scheme (ESOP)
		Bought-out Deals Vs. Private Placements
		Review Questions
Chapter 13 Intermediaries in New Issues Market
	Intermediaries in NIM
	Merchant Bankers/Lead Managers
	Underwriters
	Bankers to An Issue
	Brokers to an Issue
	Registrars to an Issue and Share Transfer Agents
	Debenture Trustees
	Review Questions
Chapter 14 SEBI Guidelines on Primary Market
	SEBI Guidelines for Listed and Unlisted Companies
		Review Questions
Chapter 15 Listing
	Security Listing
	Security
	Stock Exchange
	Recognized Stock Exchange
	Legal Provisions
	Steps
	Legal Significance
	Refusal of Listing
	SEBI Powers
	Listing and Corporate Governance
	Particulars to be Furnished
	Listing Agreement
	Stock Exchange Powers
	Listing—Benefits
	Consequences of Non-listing
	New Entry Norms for Unlisted Companies
	Listing—Suspension / Withdrawal
	Review Questions
Chapter 16 Underwriting
	Definition
	Types
	Mechanics of Underwriting
	Benefits/Functions
	Indian Scenario
	Underwriting Agencies
	Obstacles
	Underwriter
	Underwriting Agreement
	SEBI Guidelines
	Variants of Underwriting
	Grey Market
	Review Questions
Chapter 17 Book-Building
	Concept
	Characteristics
	The Process
	Allocation Procedure
	Case I—Initial Public Offer (IPO) Issue
	Illustration
	Case II—Additional Issue by Listed Company
	Illustration
	Case III—Offer by Unlisted Company
	Illustration
	Reverse Book-building
	Review Questions
Chapter 18 Over the Counter Exchange of India (OTCEI)*
	Genesis
	OTCEI Vs. Other Stock Exchanges
	Over-the-Counter
	Need and Objectives
	Features
	Benefits
	Securities Traded
	Players
	Members and Dealers
	Sponsorship
	Admission of Members—Conditions
	Admission of Dealers—Conditions
	Registrars and Custodians
	Central Clearing Bank
	Monitoring Agencies
	Trading Mechanism
	Settlement Procedure
	Slow Growth of OTCEI—Causes
	Revamping OTCEI
	Working of NASDAQ
	Changing Role of OTCEI
	Major Changes in OTCEI Functioning
	New Norms
	Utility of OTCEI’s New Listing Norms to Entrepreneurs
	OTCEI MOU with NASSCOM
	Revision in Composite Index
	Clearing and Settlement
	Technology
	Review Questions
Chapter 19 Stock Market Index Meaning
	Features
	BSE INDEX
	BSE-SENSEX
		2. BSE-TECk Index
		3. BSE-PSU Index
		4. BSE-100 Index
		5. BL-250 Stock Index
		6. BSE BANKEX
		7. S&P CNX Nifty
	S&P CNX Nifty Vs. BSE Sensitive Index
	Dow Jones Indices
	NASDAQ Stock Market Indices
	NASDAQ Index Calculation Description
	Other Index Descriptions
	S & P 500 Index
		1. S&P Global 1200
		2. S&P Global 1200 Sector Indices
	Hang Seng Index
	DAX Index
	Straits Times Index
	KOSPI
	FTSE
	MSCI (Morgan Stanley Capital International Inc) Index
	India Index Services Ltd (IISL)
	Review Questions
Chapter 20 Stock Market Trading Mechanism
	Jobbers and Brokers
	Jobbers Vs Brokers
	Stock Exchange Dealings
	Speculative Dealings
	Share Prices—Factors
	Regulating Speculation
	The Securities Contracts (Regulation) Act
	Magin Trading
	Trading of Securities—Steps
	Margins
	Badla System
	Current Trading System—Problems and Palliatives
	Review Questions
Chapter 21 Depository Services
	Depository
	Bank and Depository—Comparison
	Depository Participant (DP)
	Depository (Demat) Services
	Services/Functions
	Demat (Beneficiary) Account
	Dematerialization
	Electronic Settlement of Trade—Procedure
	Demat of Debt Instruments
	Safety System for Demat
	Shortcomings of Demat System
	Indian Depository
	Role of CDSL
	Constitution
	Major Tasks
	Benefits
	Role of NSDL
	Depository Stock Exchanges
	Legal Framework
	Review Questions
Chapter 22 Speculation
	Speculation Vs. Gambling
	Investors Vs. Speculators
	Types of Speculators
	Review Questions
Chapter 23 On-line Stock Trading
	Meaning
	Features
	Current Scenario
	Internet Trading—Alternatives
	Internet Trading—Some Issues
	Regulating Internet Stock Trading
	IPOs on the Internet—Indian Experience
	E-IPO Prospectus
	E-Commerce Act and Internet Stock Trading
	Review Questions
Chapter 24 Debt Market
	Advantages
	Risks on Debt
	Issuers Profile
	Types
	Role of Bond Market
	Price Determination—Factors
	Yield of Bond
	Yield and Price
	Secondary Debt Market
	Repos and Normal Buy or Sell
	Broken Period Interest
	Guidelines for Issue of Debt Instruments
	Review Questions
Index