CONTENTS
1. Introduction to Capital Markets 1
1.1 Introduction to Capital Markets
1.2 Constituents of the Capital Markets
1.3 Markets Since the Liberalisation of the Indian Economy
(Brief History of Development of Markets)
1.4 Actions taken by the Government Related to the Markets
1.5 Some Statistical Data and Further Developments
1.6 The Latest Developments
1.7 Summary
1.8 Keywords
1.9 Self-assessment Questions
2. Securities and Exchange Board of India (SEBI) 19
2.1 Introduction
2.2 Objectives of SEBI
2.3 The Role Assigned to SEBI
2.4 The Functions of the B oard
2.5 SEBI Guidelines for Issue of Debt Instruments
2.6 SEBI and Individual Investor
2.7 What SEBI does with its Powers
2.8 Case Studies
2.9 Summary
2.10 Keywords
2.11 Self-assessment Questions
3. Money Markets 47
3.1 Introduction to Money Markets
3.2 Participants in Money Markets
3.3 Instruments in Money Markets
3.4 Summary
3.5 Key Words
3.6 Self-assessment Questions
4. Mutual Funds 69
4.1 Introduction
4.2 Technical Jargons Used
4.3 Net Asset Value (NAV)
4.4 Asset Management Company (AMC)
4.5 Types of Schemes Offered by the Mutual Funds
4.6 Regulatory Aspects
4.7 The Case of US-64
4.8 Summary
4.9 Key Words
4.10 Self-assessment Questions
5. Merchant Banking 93
5.1 Introduction to Merchant Banking
5.2 Activities of Merchant Bankers
5.3 Issue Management
5,4 Underwriting
5.5 Guidelines for IPOs
5.6 What is Book Building?
5.7 SEBI Guidelines for Merchant Bankers
5.8 Summary
5.9 Key Words
5.10 Self-assessment Questions
6. Recent Developments 111
6.1 Introduction
6.2 Rolling Settlement
6.3 Derivatives in Stock Markets
6.4 Depository and Dematerialisation and The National Securities Depository
(NSDL)
6.5 Non-Voting Shares (NVS)
6.6 Bonus Debentures of HLL
6.7 E-Tradirtg
6.8 Stock Lending Mechanism
6.9 Employees Stock Options Plan (ESOP)
6.10 Sweat Equity
6.11 Summary Key Words Self-assessment Questions
6.12 Key Words
6.13 Self - Assessment Questions
7. Stock Exchanges 129
7.1 Introduction
7.2 Introduction to Stock Exchanges
7.3 Importance and Operations of Depositories
7.4 Dematerialisation- Process and Operation
7.5 Introduction to National Stock Exchange
7.6 Stock Market Indices
7.7 Stock Holding Corporation of India Ltd. (SHCIL)
7.8 Summary
7.9 Key Words
7.10 Self-assessment Questions
8. Venture Capital 151
8.1 Introduction
8.2 Characteristics of V.C.
8.3 Stages of Venture Capitol Financing
8.4 SEBI Venture Capital Funds Regulation
8.5 Problems with VCs in the Indian Context
8.6 Current Trends
8.7 Summary
8.8 Key Words
8.9 Self-assessment Questions
9. Credit Rating 175
9.1 InUoduction and Need of Credit Rating
9.2 Credit Rating
9.3 Factors that Contributed to the Growth of Credit Rating 9.4 Factors Considered by Credit Rating Agencies while Rating an Instrument
9.5 Flow Chart of Rating Process
9 6 CRISJL's Long Term Rating Symbols
9.7 Resent Developments
9.8 Summary
9.9 Key Words
9.10 Self-assessment Questi ons
10. Share Buy-Back 189
10.1 Introduction
10.2 The method and the Obligations of the Company in Share Buy-Back
10.3 The Effects of the Buy-Back
10.4 Types of Share Buy-Backs
10.5 Conclusion
10.6 Summary
10.7 Keywords
10.8 Self-assessment Questions
11. Portfolio Management and Financial Engineering 207
11.1 Functions of Portfolio Management and Advantages of Portfolio Management
for Individuals
11.2 Types of Portfolio Management
11.3 Qualities of Portfolio Manager
11.4 Steps in Portfolio Management
11.5 Criteria for Portfolio Decisions and Factors that influence Portfolio Decisions
11.6 SEBI Regulations Governing Portfolio Management Activities
11.7 Code of Conduct - Portfolio Manager
11.8 Financial Engineering
11.9 Factors Responsible for the Growth of FE
11.10 Tools of Financial Engineering
11.11 Categories of Financial Eng ineers
11.12 Products Developed by Financial Engineers
11.13 Summary
11.14 Keywords
11.15 Self-aSsessment Questions
12. Corporate Governance 223
12.1 Introduction and Historical Perspective
12.2 Background for Formation of Birla Committee
12.3 Mandatory Recommendations of Birla Committee
12.4 Some Recent Developments
12.5 Clause 49 of the Listing Agreement
12.6 Case Study
12.7 Summary
12.8 Keywords
12.9 Self-assessment Questions
13. Mergers and Takeovers 239
13.1 Introduction
13.2 Procedure of Mergers and Takeovers
13.3 Case Studies in Hostile Takeovers
13.4 Summary
13.5 Keywords
13.6 Self-assessment Questions
14. Lease and Hire Purchase 261
14.1 Introduction to Lease Finance
14.2 Sources of Funds for the Finance Companies
14.3 Contents of Lease Agreement
14.4 Sale and Lease Back Transactions
14.5 Hire Purchase
14.6 Summary Regulations Governing NBFCs Issued by RBI
14.7 Latest Developments
14.8 Summary
14.9 Keywords
14.10 Self-assessment Questions
15. Housing Finance 273
15.1 Introduction and Background
15.2 National Housing Bank
15.3 Procedure for Disbursement of Loans by HFCs
15.4 Securitisation and Housing Finance
15.5 New Developments in Housing Loans
15.6 Summary
15.7 Keywords
15.8 Self-assessment Questions
Appendix A: Suggested Reference Books 289