CAPITAL MARKET MATURE IN INDIA<br />	      Rahul Tank				<br />
INTRODUCTION<br />    Capital Market is a market in which securities are traded. Capital markets include the stock and bon...
Financial Innovation in Global Capital Market<br />Sudden spurt in financial innovation seen in recent years.<br />World f...
Capital Market of USA<br />    It is considered as a very strong and developed capital market. It is the largest in the wo...
Turnover velocity of various exchange<br />
INDIAN CAPITAL MARKETS – AN OVERVIEW<br />
Reforms in the Indian Capital Markets<br />Derivative Trading<br />Mutual Funds<br />Dematerialization of Securities<br />...
Political<br />Economical<br />Social<br />Technological<br />Environmental<br />Legal<br />PESTEL Analysis: India Vs. US<...
Maturity: A distant dream?<br />
Macro Economic Factors<br />Financial Literacy<br />FLEC (US), FSA Campaign (UK)<br />Bureaucratic Hurdles<br />Stringent ...
Necessary Products<br />India VIX – Real Time Calculation<br />Forex – Currency Options<br />Bond Market – Interest rate f...
Aashish Singhee<br />
REITs<br />
A FLIP SIDE<br />
Barings BankStrength to Bankruptcy<br />
<ul><li> Loopholes in Risk management System
Nick Leeson– Man who was turned Bank upside down
He was an Operations manager, General Manager with Authority to Hire Traders and Back office staff
They performed 2 types of trading :</li></ul> 	 1. 	Transacting futures and options orders for clients or for other 	firms...
By end of 1993, A/C 88888 was 23 Million GBP negative
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Capital market mature in india

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Capital market mature in india

  1. 1. CAPITAL MARKET MATURE IN INDIA<br /> Rahul Tank <br />
  2. 2. INTRODUCTION<br /> Capital Market is a market in which securities are traded. Capital markets include the stock and bond markets.<br />The different types of financial instruments are :<br />Equity instruments<br />Credit market instruments<br />Insurance instruments<br />Foreign exchange instruments<br />Derivative instruments<br />
  3. 3. Financial Innovation in Global Capital Market<br />Sudden spurt in financial innovation seen in recent years.<br />World financial markets are intertwined in their performances.<br />It has led to the development of new financial centers like Singapore, Middle-East (Dubai), Hongkongetc.<br />
  4. 4. Capital Market of USA<br /> It is considered as a very strong and developed capital market. It is the largest in the world.<br />The list of stock exchanges in USA in given below: <br />New York Stock Exchanges<br />NASDAQ<br />Philadelphia<br />Boston Stock Exchanges<br />American Stock Exchanges<br />Chicago Stock Exchanges<br />New York Board of Trade<br />
  5. 5. Turnover velocity of various exchange<br />
  6. 6. INDIAN CAPITAL MARKETS – AN OVERVIEW<br />
  7. 7.
  8. 8. Reforms in the Indian Capital Markets<br />Derivative Trading<br />Mutual Funds<br />Dematerialization of Securities<br />Technological Advancements<br />FII’s<br />
  9. 9. Political<br />Economical<br />Social<br />Technological<br />Environmental<br />Legal<br />PESTEL Analysis: India Vs. US<br />
  10. 10. Maturity: A distant dream?<br />
  11. 11. Macro Economic Factors<br />Financial Literacy<br />FLEC (US), FSA Campaign (UK)<br />Bureaucratic Hurdles<br />Stringent Rules<br />Corruption <br />Lack of Participation<br />Market Reach & Infrastructural Issues<br />Low Per Capita Income (`44,345)<br />
  12. 12. Necessary Products<br />India VIX – Real Time Calculation<br />Forex – Currency Options<br />Bond Market – Interest rate futures<br />Freight Index<br />Weather Derivatives<br />Credit Derivatives<br />
  13. 13. Aashish Singhee<br />
  14. 14. REITs<br />
  15. 15. A FLIP SIDE<br />
  16. 16. Barings BankStrength to Bankruptcy<br />
  17. 17. <ul><li> Loopholes in Risk management System
  18. 18. Nick Leeson– Man who was turned Bank upside down
  19. 19. He was an Operations manager, General Manager with Authority to Hire Traders and Back office staff
  20. 20. They performed 2 types of trading :</li></ul> 1. Transacting futures and options orders for clients or for other firms within Barings organization. <br /> 2. Arbitraging price difference between Nikkei futures traded on the SIMEX and Japan’s Osaka’s exchange<br /> 3. Hedging <br /><ul><li>By end of 1992, A/C 88888 was under water by 2 Millions GBP
  21. 21. By end of 1993, A/C 88888 was 23 Million GBP negative
  22. 22. By 1995, A/C 88888 was 827 Million GBP which made a BIG HOLE in Balance Sheet of Barings Bank </li></li></ul><li>Amaranth Hedge FundWhat happens when your Friendly Banker becomes - PREDATOR<br />
  23. 23. <ul><li> JP Morgan was prime broker (Clearing Firm)
  24. 24. Amaranth Bet on energy future Markets
  25. 25. JP Morgan was aware of the market
  26. 26. Friend turned Foe
  27. 27. Amaranth Hedge Fund sold to JP Morgan for </li></ul> $1.2 Billion<br /><ul><li> JP Morgan made $725 Million for its deal </li></li></ul><li>CONCLUSION<br />
  28. 28. Thank you !!!<br />Aashish Singhee<br />

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