印度现代化股市分析的墨尔本assignment范例

印度现代化的股市也许是在过去的二十年印度经济最大的变化。这场创新的影响已经十分深远,它被许多人认为是最有效的印度经济自由化先驱-这一进程在1990年由P V Narasimha Rao and Manmohan Singh开创。   印度现代化的资本市场同时也是一个企业,政府和社会一起来率先创建出屏障变化然后通过彼此的交流互动帮助其更快的实现的典型例子。有趣的是,它也是经济学新制度主义与凯恩斯主义模型的典型实例对比。在1990年以前,印度的资本市场是一个伴随在权力下运行的印度政府的高度监管部门,从而表现出一个完美的凯恩斯模型!然而,这被证明是非常不利于印度的经济的,因为它开始面临严重的国际收支问题,印度的外汇储备减少,政府几乎无法持续进口融资达3周。Narasimha Rao政府在1990年启动了现代化的进程,第一步,是对股票市场的管制。再逐渐地,市场走向经济学新制度主义形式的监管。当达到了另一个极端,私人股东开始利用该系统开始在印度股市进行一系列臭名昭著的诈骗。这要求有一定的预防措施和防护规定。于是印度股市最后确定在这两者的中间,一个经济学新制度主义与凯恩斯主义监管措施健康的混合。   印度现代化股市的分析-Analysis Of The Modernisation Of Indian Stock Markets    The modernization of Indian Stock Markets is perhaps, the biggest change that hit the Indian economy in the last two decades. The effects of this innovation has been truly far-reaching and it is deemed by many as arguably the most effective forerunner of liberalization of the Indian economy – a process started by P V Narasimha Rao and Manmohan Singh in 1990.   The modernization of India’s capital markets is also a classic example of an innovation where Business, Government & Society come together to first create barriers for the change and later, help in faster implementation through their interactions with each other. It is also interestingly, a classic case of Smithian vs. Keynesian models of regulation. Before 1990, the capital markets in India was a highly regulated sector, with the Indian Government exercising undue power, thereby exhibiting a perfect Keynesian model! However, this proved to be highly detrimental to the Indian economy as it started facing serious balance of payments problems and India’s foreign exchange reserves reduced to the point where the Govt. could barely finance imports worth 3 weeks. The Narasimha Rao Govt. in 1990, initiated the process of modernization and the first step towards this, was deregulation of the stock markets. Gradually, the market moved towards a Smithian form of regulation. As this reached the other extreme, private shareholders started exploiting the system and there was a series of infamous scams in the Indian stock market. This called for preventive measures and protective regulation. The Indian stock market finally settled somewhere at the middle, with a healthy mix of Smithian and Keynesian regulatory measures.   In this report, we first enlist the salient features of this innovation and take a quick look at its social impact. We look at how the new measures implemented, deregulated the stock market and encouraged more private participation, opening up the Indian stock market to the ‘aam aadmi’. This is followed by a study the process by which the innovation was implemented. Here we look at the events that led to the implementation of this measure, identify the key stakeholders involved and enumerate the three major steps leading to the implementation of this innovation. Next, we look at the barriers that it faced from all three quarters (Business, Govt. & Society) and also, explain the steps taken to overcome these barriers. In this section, we discuss how factors like colonialism, Fabian Socialism, Protectionism, bureaucracy, Red tapism, insider trading, private monopoly etc. proved to be stumbling blocks in the path of modernization. Then the outcomes of this measure are critically analyzed, its effectiveness assessed and what could have been done to make it further effective, is discussed. Here we introduce the concept of “hasty liberalization” and finally, we conclude with a discussion on the key takeaways and inferences from this study.   In short, the study of modernization of Indian stock markets and its effects is a good story that brings out the effects of interactions among Businesses, Governments and Society with respect to a rather significant public innovation and more importantly, the role of regulation in the corporate world.   Major Reforms in the Indian Capital Market   Free pricing was introduced which meant that issuers of securities were allowed to raise capital without requiring any consent from any authority either for making the issue or for pricing it. However issuer of capital were required to meet the SEBI guidelines for Disclosure and Investor Protection which covered the eligibility norms for making issues of capital at par and premium by various companies.   With the removal of capital issue control and free pricing there was an unprecedented upsurge of activity in the primary capital market. It exposed the inadequacies of the regulations. Thus SEBI strengthened the norms for public issues in April, 1996 without curtailing the freedom of issuers to enter the market and freely price their issues. Aim was to increase transparency for effective investor protection. Issuers of capital were now required to disclose information on various aspects like track record of profitability, risk factors, etc.   There was modernisation of trading infrastructure by replacing the open outcry system with on-line screen based electronic trading. 23 stock exchanges with 8000 trading terminals were spread throughout the country which improved the liquidity of Indian capital market and better price discovery.   Trading and settlement cycles were shortened from 14 days to 7 days. The efficiency of secondary market was enhanced by rolling settlement which was enhanced on T+5 bases. At April 1, 2002 the settlement cycle was shortened to T+3 for all listed securities, which was further changed to T+2.   Measures like margining system, intra-day trading limit, exposure limit and setting up of trade/ settlement guarantee fund were undertaken or strengthened to ensure safety and integrity of market   Securities which were held in physical form were dematerialised and their transfer was done through electronic book entry.   All listed companies were required to furnish stock exchange and publish quarterly unaudited financial results for the purpose of continuous disclosure. For enhancing the same SEBI amended the Listing Agreement to incorporate the Segment Reporting, Accounting for Taxes on Income, Consolidated Financial Results, Consolidated Financial Statements, Related Party Disclosures and Compliance with Accounting Standards   There was increased integration between Indian and International capital market. FIIs such as mutual funds, pension funds and country funds were allowed in the Indian markets. Indian firms could now raise capital through issues of Global Depository Receipts (GDRs), American Depository Receipts(ADRs), Euro Convertible Bonds(ECBs), etc.   SEBI removed the influence of brokers in functioning of stock exchange by denying them from being officer bearers of an exchange or hold the position of President, Vice President, Treasure, etc.   Apart from stock exchanges, various intermediaries, such as mutual funds, stock brokers and sub-brokers merchant bankers, portfolio managers, registrars to an issue and share transfer agents, underwriters, debenture trustees, bankers to an issue, custodian of securities, venture capital funds and issuers have been brought under the SEBI’s regulatory purview.   Regulations were put in place for governing substantial acquisition of shares and takeovers of companies. The process was made more transparent to protect the interest of minority shareholders   Trading in derivative products such as stock index future stock index options and futures and options in individual stocks were also introduced   社会影响-Social Impact   The dematerialisation led to greater participation of public in Indian Stock Markets. Removal of Barriers provided apt environment for innovative companies like TCS and Infosys to grow, as they could now easily raise capital from public as well as foreign investors. The freeing of market led to increased competition as there were more number of private as well as foreign companies entering the market, and it helped in raising the infamous Hindu Growth Rate. Investors become more cautious and involved into analysing financial market because, the added benefits came with the risk of scams by fraudulent companies. In all it increases the risk appetite of Indian public who traditionally involved in risk averse options like Fixed Deposits in Bank, saving schemes of post office etc.   创新过程-Process of Innovation [i]    In June 1991, India was in the midst of severe fiscal and external imbalances which had generated Double digit inflation and put the country on the verge of defaulting on its external debt obligations. Manmohan Singh as a finance minister in PV Narsimha Rao government pushed forward the idea of Economic liberalisation, the modernisation of Indian stock exchange was a part of this larger plan. The main reasons that led to reforms in Indian capital markets are as follows:-