share of global insurance premium is less 0.5% (1998) than that of US 24.2 percent
and Japan 21 percent. The private players from India and abroad are well aware
that only 25 percent of the insurable population have been covered by insurance
by existing c
Group A and Group B Shares The listed shares are divided into two categories:
Group A shares (also referred to as cleared securities or specified shares) and
Group B shares (also referred to as non-cleared securities or non-specified shares).
For Group A
Management National Bank for Agricultural and Rural Development is wholly
owned by central government, hence it is managed by the central government
constituted management board.
Working Result National Bank for Agricultural and Rural Development operates
4th end of 1995-96. The gross net resources mobilized by Unit Trust of India
through open ended schemes were Rs 7092 crore and closed ended schemes were
Rs 3.85 crore in the year 2002-03. The Growth performance of the Unit Trust of
India has been explaine
Capital Industrial Development Bank of India was started with initial paid up
capital of Rs. 100 crores and now it can raise further capital with the help of issue
of shares, debentures and accept deposits from public.
Objectives The main objectives of th
Bank of India, scheduled banks. Insurance companies, investment trust and cooperative banks. Industrial finance corporation of India can raise further capital
with the help of issue of bonds, debentures, accepts deposits from public and
advance from RBI.
needs and some others are emotional needs. Peoples needs are limited; however,
no one would choose to live at the level of basic human needs if they want to
enjoy a better standard of living. This is because human wants (desire for the
consumption of good
25% The following further particulars are available. (i) Raw materials remain in
shares 5 weeks. (ii) Cash in processing 4 weeks. (iii) Finished goods in own house 6
weeks. (iv) Credit period to customers 8 weeks supplie 4 weeks. (v) Lag in payment
rates are Mumbai Inter-Bank Offer Rate (MIBOR) and Mumbai Inter-Bank Bid Rate
(MIBID). MIBOR will be the indicator of Landing Rate for loans which MIBID will be
the landing rate of receipts.
Share Market India has a well developed share market system, whi
1955 as a Public Ltd. Companies under the companies act. It is only development
bank which has participation by foreign investors.
Capital Paid up share Capital of Industrial Credit and Investment Corporation of
India is Rs. 25 crore, which was contribute
of policy-holders against misuses and embezzlement of funds by private insurance
companies. Secondly, the object of nationalization was to direct investment of
funds in government securities, leaving a meager part for the private sector.
What marks and di
Government of India has also decided to sell dated securities (of 5 year maturity
and 10 maturity) on an auction basis. The purpose of this Government decision is:
(i) to develop dated securities as a monetary instrument with flexible yields; (ii) to
Employment - Issues and Challenges Business Cycles Phases Management of
Cyclical Fluctuations - Fiscal and Monetary Policies.
Unit V Macro Economic Environment - Economic Transition in India - A quick
Review - Liberalization, Privatization and Globalizati
this reason, convertible debentures are issued at a time when it is difficult to raise
capital either by equity or fixed interest securities. There are three ways in which a
company may raise capital in the primary market.
PUBLIC ISSUE By far the most imp
banks and financial institutions in the money market, on the other. 4. Certificate of
deposits(CDs): The CDs are another important instrument of money market. They
are issued by banks in multiples of Rs. 25 lakhs subject to a minimum amount of
certificates or other instruments, or in any other manner and which according to
the definitions contained in the Non-Banking Financial Companies (Reserve Bank)
Directions, 1977 or as the case may be, the Miscellaneous
dematerialized securities and exchange of any security in dematerialised segment
for the units of the scheme.
Venture Capital Funds (VCFs) The Union Budget for 19992000 stressed the need
for higher investment in venture capital ac
3. register and regulate the working of mutual funds. 4. promote and regulate
self-regulatory organizations. 5. prohibit fraudulent and unfair trade practices in
securities markets. 6. promote investors education and training of inter
Regional Stock Exchange (RSE)
National Stock Exchange (NSE)
Fig. 13.7 Financial Market
Capital Market Capital market may be defined as on organised mechanism for
effective and efficient transfer of money-capital or financial recourses from the
50) would purchase 20 units. When the price rises to Rs. 50 there was only one
student would buy it. The demand curve, (DD) is downward sloping curve from
left to right showing that as price falls, quantity demanded rises. This inverse
various guidelines regarding proper disclosure for investors protection. These
guidelines are required to be duly observed by the companies making issue of
capital. The guidelines issued by the SEBI broadly cover the requirements
regarding issue of capita
Development Financial Institutions (DFI)
New Issues Market
Old Issues Market
IFCI ICICI SFCs IDBI IIBI UTI
Fig. 13.8 Capital Market in I
building, plant and machinery and other fixed equipments, which are used in the
business concern. 2. Assets based finance Leasing provides finance facilities to
procure assets and equipments for the company. Hence, it plays a important and
prices. Although Income Tax concessions provide incentive to higher income
groups through LIC policies, the insuring public does not get the real value of its
long-term savings because of chronic inflation. Barring risk coverage, the rate of
services such as merchant banking, underwriting, project counseling, credit rating
etc., because, these services are not related to any funds transfer activities.
Non-banking Finance Companies (NBFC) The categories of NBFCs and the na
Certain things become the necessities of modern life. So we have to purchase
them despite their high price. The demand for T.V. sets, automobiles and
refrigerators etc. has not gone down in spite of the increase in their price. These
things have become th
Capital Industrial Reconstruction Bank of India was started with initial paid up
capital of Rs. 50 crore which is contributed by central government, Reserve Bank
of India, SCB and various
financial institutions. Further capital ca
Capital State Finance Corporations will have a paid up capital from Rs. 50 lakhs to
Rs. 5 crore which will be contributed by the respective state government, Schedule
Commercial Bank, Reserved Bank of India and various financial institutions.
Land: It includes all natural resources on the earth and below the earth. Non
renewable resources such as oil, coal etc once used will never be replaced. It will
not be available for our children. Renewable resources can be used and replaced
and is not de
currency preshipment credit. 7. Product equipment finance programme. 8.
Business advisory and technical assistance (BATA).
Management EXIM bank is one of the wholly owned by central government,
hence, the entire management is controlled by the central gov
Financing lease Financing lease is also called as full payout lease. It is one of the
long-term leases and cannot be cancelable before the expiry of the agreement. It
means a lease for terms that approach the economic life of the asset, the total
Sukhmoy Chakravarty Committee on the Review of the working of the Monetary
System, the RBI has initiated a series of money market reforms. The Narasimhan
Committee report on the Working of the Financial System in India, (1991) also
made important recommen
markets. ABN-Amro Bank N.V. Abu Dhabi Commercial Bank Ltd. American
Express Bank Ltd. Antwerp Diamond Bank N.V. Arab Bangladesh Bank Ltd.
Bank International Indonesia Bank of America NA Bank of Bahrain and Kuwait
BSC Bank of Ceylon Barclays Bank PLC BNP