Sunday, May 24, 2020

Stock Exchanges Role In Markets Finance Essay - Free Essay Example

Sample details Pages: 23 Words: 6940 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? The Stock Exchange is an organized market for purchase and sale of listed industrial and financial securities. The securities traded on stock exchanges include shares and debentures of Public Limited Co.s, Govt. Securities, etc. According to the Securities Contracts (Regulation) Act, 1956, Stock exchange is an association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling business in buying, selling and dealing securities.  [1] Stock market refers to the market provided by different stock exchanges to the securities which include share, debenture, bond and other Government securities. It is a market place where buyers and sellers of shares and securities admitted to dealings, can do business at competitive open prices, both for equities and debt instruments.  [2] Participants The securities market, thus, has essentially three categories of participants, namely the iss uers of securities, investors in securities and the intermediaries and two categories of products, namely the services of the intermediaries and the securities, including derivatives. The issuers and investors are the consumers of services rendered by the intermediaries while the investors are consumers of securities issued by issuers. Those who receive funds in exchange for securities and those who receive securities in exchange for funds often need the reassurance that it is safe to do so. This reassurance is provided by the law and custom, often enforced by the regulator. The regulator develops fair market practices and regulates the conduct of issuers of securities and the intermediaries so as to protect the interests of investors in securities. The regulator ensures a high standard of service from intermediaries and supply of quality securities and non manipulated demand for them in the market.  [3]  While the corporate sector and governments together raised a sum of Rs. 22 6,911 crore during 2001-02, the household sector invested 4.3% of their financial savings through the securities market during 2000-01.  [4] Corporate Sector: The 1990s witnessed emergence of the securities market as a major source of finance for trade and industry. The share of capital market based instruments in resources raised externally increased to 53% in 1993-94, but declined thereafter to 31% by 2000-01.  [5] Governments: Along with increase in fiscal deficits of the governments, the dependence on market borrowings to finance fiscal deficits has increased over the years. The state governments and the central government financed about 14% and 18% respectively of their fiscal deficit by market borrowings during 1990-91. In percentage terms, dependence of the state governments on market borrowing did not increase much during the decade 1991-2002. In case of central government, it increased to 69.4% by 2001-02.  [6] Households: Household sector accounted for 89% o f gross domestic savings during 2000-01; 53% of their savings were in financial assets. The share of financial savings of the household sector in securities (shares, debentures, public sector bonds and units of UTI and other mutual funds and government securities) is estimated to have gone down from 22.9% in 1991-92 to 4.3% in 2000-01.  [7] A Brief History The AMSTER DAMBERUS is the worlds oldest Stock Exchange, where corporate stocks were dealt in 1585 A.D. Thereafter, dealings in stocks started in London (1675), Brussels (1801), Paris Bourse Stock Exchange (1808), and New York Stock Exchange (1810) and so on.  [8]  Though the historical records relating to securities market in India is meagre and obscure, there is evidence to indicate that the loan securities of the East Indian Company used to be traded towards close of the 18th century. By 1830s, the trading in shares of banks started. The trader by the name of broker emerged in 1830 when 6 persons called themselves a s share brokers. This number grew gradually. Till 1850, they traded in shares of banks and securities of the East India Company in Mumbai under a sprawling Banyan Tree in front of the Town Hall, which is now in the Horniman Circle Park. It is no surprise that the majestic Phiroze Jeejeebhoy Towers is located at the Horniman Circle. In 1850, the Companies Act introducing limited liability was enacted heralding the era of modern joint stock company which propelled trading volumes.  [9] After a boom due to the increase demand of cotton and thus the incorporation of various companies in India during the American Civil War the number of brokers, which had increased during the civil war to about 250, declined. During the civil war, they had become so influential and powerful that even the police had only salams for them. But after the end of the civil war, they were driven from pillar to post by the police. They moved from place to place till 1874 when they found a convenient place, which is now appropriately called Dalal Street after their name. They organized an informal association on or about 9th July 1875 for protecting their interests. On 3rd December 1887, they established a stock exchange called Native Share and Stock Brokers Association. This laid the foundation of the oldest stock exchange in India. The word native indicated that only natives of India could be brokers of the Exchange. In 1880s a number textile mills came up in Ahmedabad. This created a need for trading of shares of these mills. In 1894, the brokers of Ahmedabad formed The Ahmedabad Share and Stock Brokers Association. The 1870s saw a boom in jute prices, 1880s and 1890s saw boom in tea prices, then followed coal boom. When the booms ended, there were endless differences and disputes among brokers in eastern India which was home to production of jute, tea and coal. This provoked the establishment of The Calcutta Stock Exchange Association on June 15, 1908. Then followed the proli feration of exchanges, many of them even do not exist today. The rest is history. Control of capital issues was introduced through the Defence of India Rules in 1943 under the Defence of India Act, 1939 to channel resources to support the war effort. The control was retained after the war with some modifications as a means of controlling the raising of capital by companies and to ensure that national resources were channeled to serve the goals and priorities of the government, and to protect the interests of investors. The relevant provisions in the Defence of India Rules were replaced by the Capital Issues (Continuance of Control) Act in April 1947.  [10] Though the stock exchanges were in operation, there was no legislation for their regulation till the Bombay Securities Contracts Control Act was enacted in 1925. This was, however, deficient in many respects. Under the constitution which came into force on January 26, 1950, stock exchanges and forward markets came under th e exclusive authority of the central government. Following the recommendations of the A. D. Gorwala Committee in 1951, the Securities Contracts (Regulation) Act, 1956 was enacted to provide for direct and indirect control of virtually all aspects of securities trading and the running of stock exchanges and to prevent undesirable transactions in securities.  [11] In 1980s and 1990s, it was increasingly realized that an efficient and well developed securities market is essential for sustained economic growth. Without venturing into a detailed discussion at this stage, it would suffice if the researcher just says that the securities market fosters economic growth to the extent it augments the quantities of real savings and capital formation from a given level of national income and it raises productivity of investment by improving allocation of investible funds. The extent depends on the quality of the securities market. In order to improve the quality of the market, that is, to i mprove market efficiency, enhance transparency, prevent unfair trade practices and bring the Indian market up to international standards, a package of reforms consisting of measures to liberalise, regulate and develop the securities market is being implemented since early 1990s. This has had various beneficial implications.  [12] Regulatory Framework The four main legislations governing the securities market are: the SEBI Act, 1992 which establishes SEBI to protect investors and develop and regulate securities market; the Companies Act, 1956, which sets out the code of conduct for the corporate sector in relation to issue, allotment and transfer of securities, and disclosures to be made in public issues; the Securities Contracts (Regulation) Act, 1956, which provides for regulation of transactions in securities through control over stock exchanges; the Depositories Act, 1996 which provides for electronic maintenance and transfer of ownership of demat securities. The two exclusive legislations that governed the securities market till early 1992were the Capital Issues (Control) Act, 1947 (CICA) and the Securities Contracts (Regulation) Act, 1956 (SCRA). The CICA had its origin during the war in 1943 when the objective was to channel resources to support the war effort. Control of capital issues was introduced through the Defence of India Rules in May 1943 under the Defence of India Act, 1939. The control was retained after the war with some modifications as means of controlling the raising of capital by companies and to ensure that national resources were channeled into proper lines, i.e., for desirable purposes to serve goals and priorities of the government, and to protect the interests of investors. The relevant provisions in the Defence of India Rules were replaced by the Capital Issues (Continuance of Control) Act in April 1947. This Act was made permanent in 1956 and enacted as the Capital Issues (Control) Act, 1947. Under the Act, t he Controller of Capital Issues was set up which granted approval for issue of securities and also determined the amount, type and price of the issue. This Act was, however, repealed in 1992 as a part of liberalization process to allow the companies to approach the market directly provided they issue securities in compliance with prescribed guidelines relating to disclosure and investor protection.  [13] Though the stock exchanges were in operation, there was no legislation for their regulation till the Bombay Securities Contracts Control Act was enacted in 1925. This was, however, deficient in many respects. Under the constitution which came into force on January 26, 1950, stock exchanges and forward markets came under the exclusive authority of the Central Government. The Government appointed the A. D. Gorwala Committee in 1951 to formulate legislation for the regulation of the stock exchanges and of contracts in securities. Following the recommendations of the Committe e, the SCRA was enacted in 1956 to provide for direct and indirect control of virtually all aspects of securities trading and the running of stock exchanges and to prevent undesirable transactions in securities. The authorities have been quite sensitive to requirements of the development of securities market, so much so that the last decade (1992-2003) witnessed nine special legislative interventions, including two new enactments, namely the Securities and Exchange Board of India (SEBI) Act, 1992 and the Depositories Act, 1996. The SCRA, the SEBI Act and the Depositories Act were amended six, five and three times respectively during the same period. The developmental need was so urgent at times, that the last decade witnessed five ordinances relating to securities laws. Besides, a number of other legislations (the Income Tax Act, the Companies Act, the Indian Stamps Act, the Bankers Book Evidence Act, the Benami Transactions (Prohibition) Act etc.) having bearing on securities marke ts have been amended in the recent past to complement amendments in securities laws. The legal reforms began with the enactment of the SEBI Act, 1992, This was followed by repeal of the Capital Issues (Control) Act, 1947 in 1992 which paved way for market determined allocation of resources. Then came the Securities Laws (Amendment) Act in 1995 followed by the Depositories Act in 1996 to provide for the establishment of depositories in securities with the objective of ensuring free transferability of securities with speed, accuracy and security. The Depositories Related Laws (Amendment) Act, 1997 amended various legislations to facilitate dematerialization of securities. The Securities Laws (Amendment) Act, 1999 was enacted to provide a legal framework for trading of derivatives of securities and units of CIS. The Securities Laws (Second Amendment) Act, 1999 was enacted to empower SAT to deal with appeals against orders of SEBI under the Depositories Act and the SEBI Act, and agai nst refusal of stock exchanges to list securities under the SCRA. The next intervention is the SEBI (Amendment) Act, 2002 which enhanced powers of SEBI substantially in respect of inspection, investigation and enforcement. The latest and the ninth legislative intervention namely the Securities Laws (Amendment) Bill, 2003 was introduced in the Parliament to amend the SCRA to provide for demutualization of stock exchange. Repeal of Capital Issues (Control) Act, 1947 It is believed that a liberalized securities market helps promote economic growth. The more liberalized a securities market is, the better is its impact on economic growth.  [14]  Interventions in the securities market were originally designed to help governments expropriate much of the seigniorage and control and direct the flow of funds for favoured uses. These helped governments to tap savings on a low or even no-cost basis. Besides government used to allocate funds from the securities market to competing ente rprises and decide the terms of allocation. The result was channelisation of resources to favoured uses rather than sound projects. In such circumstances accumulation of capital per se meant little, where rate of return on some investments were negative while extremely remunerative investment opportunities were foregone. This kept the average rate of return from investment lower than it would otherwise have been and, given the cost of savings, the resulting investment was less than optimum. As a part of the liberalization process, the CICA was repealed by an Ordinance on May 29, 1992 paving way for market determined allocation of resources. With this the office of Controller of Capital Issues was abolished and the cost of rationing the resources was saved. The Act earlier required a firm wishing to issue securities to obtain prior approval from the government, which also determined the amount, type and price of the issue. Now the eligible firms comply with the specified requireme nts and access the market to raise as much resources and at such terms as the market can bear. In the issues made through book building, the investors have freedom to subscribe for the securities at the prices they consider appropriate. SEBI Act, 1992: The SEBI Act, 1992 establishes SEBI with statutory powers for (a) protecting the interests of investors in securities, (b) promoting the development of the securities market, and (c) regulating the securities market. Its regulatory jurisdiction extends over corporates in the issuance of capital and transfer of securities, in addition to all intermediaries and persons associated with securities market.  [15]  It can conduct enquiries, audits and inspection of all concerned and adjudicate offences under the Act. It has powers to register and regulate all market intermediaries  [16]  and also to penalize them in case of violations of the provisions of the Act, Rules and Regulations made there under.  [17]  SEBI has f ull autonomy and authority to regulate and develop an orderly securities market. As observed by the Supreme Court in the words of J. Sinha on behalf of a three judge bench in the case of Swedish Match AB v. SEBI  [18]  the purpose and objective behind the introduction of SEBI was, Establishment of independent regulatory agencies and need for expert regulations were long felt primarily as a response to the growing complexity in human affairs and trade and business in particular. It was felt that a regulator who was aware of the realities of that field should be ready to regulate that field. Demand for regulators who were not mere Government officials but people who are experts in the field came up. Regulations framed by an expert body like SEBI was felt to be an effective substitute for government regulation. The evolution in respect whereof can be traced back to the Great Depression of 1930s. As a part of the new deal, several expert bodies were established like the Federa l Communications Commission and Securities Exchange Commission. In the Indian context, this rationale was invoked for the establishment of an expert body to regulate the securities market after the Securities Scam in 1992. Securities Contracts (Regulation) Act, 1956: It provides for direct and indirect control of virtually all aspects of securities trading and the running of stock exchanges and aims to prevent undesirable transactions in securities. It gives central government/SEBI regulatory jurisdiction over (a) stock exchanges through a process of recognition and continued supervision, (b) contracts in securities, and (c) listing of securities on stock exchanges. As a condition of recognition, a stock exchange complies with prescribed conditions of Central Government. Organised trading activity in securities takes place on a specified recognised stock exchange. The stock exchanges determine their own listing regulations which have to conform to the minimum listing criteria set out in the Rules. Depositories Act, 1996: The Depositories Act, 1996 provides for the establishment of depositories in securities with the objective of ensuring free transferability of securities with speed, accuracy and security by (a) making securities of public limited companies freely transferable subject to certain exceptions; (b) dematerialising the securities in the depository mode; and (c) providing for maintenance of ownership records in a book entry form. In order to streamline the settlement process, the Act envisages transfer of ownership of securities electronically by book entry without making the securities move from person to person. The Act has made the securities of all public limited companies freely transferable, restricting the companys right to use discretion in effecting the transfer of securities, and the transfer deed and other procedural requirements under the Companies Act have been dispensed with. Companies Act, 1956: It deals with issue, allotment and transfer of securities and various aspects relating to company management. It provides for standard of disclosure in public issues of capital, particularly in the fields of company management and projects, information about other listed companies under the same management, and management perception of risk factors. It also regulates underwriting, the use of premium and discounts on issues, rights and bonus issues, payment of interest and dividends, supply of annual report and other information.  [19] A Functional Approach to the Markets Need for a Stock Exchange The Stock Exchange is a key financial institution which plays an important role in the course of the issue and sale of various types of securities. This is an institution and a pivot around which every activity of the national capital markets revolve. It is continuously engaged in the capital mobilization process. The Stock exchange provides opportunity to the fund users for the continuous trading in securities. Through the medium of Stock Exchange, the investors get an impetus and motivation to invest in securities without which they would have had no chance to liquidate their investments or adjust their portfolios. Had there been no institution of stock exchanges many of the savers would have had simply held on to their savings either in cash or in banks. Another consequence of the non-existence of Stock Exchanges would have been lower aggregate savings of the community. The Stock exchange provides safety and liquidity to the investing public and generates a sense to save and put their money in securities instead of investing in small firms whose integrity and competence they would never judge themselves accurately. A stock market is a place where enormous capital is raised, which is generally required to operate the industrial and commercial enterprise of a country. The types of Companies, the concept of listing and the role of Stock Exchange. The word Company is an am algamation of the Latin word Com meaning with or together and Pains meaning bread. Originally, it referred to a group of persons who took their meals together. A company is nothing but a group of persons who have come together or who have contributed money for some common person and who have incorporated themselves into a distinct legal entity in the form of a company for that purpose. Under Halsburys Laws of England, the term company has been defined as a collection of many individuals united into one body under special domination, having perpetual succession under an artificial form and vested by the policies of law with the capacity of acting in several respect as an individual, particularly for taking and granting of property, for contracting obligation and for suing and being sued, for enjoying privileges and immunities in common and exercising a variety of political rights, more or less extensive, according to the design of its institution or the powers upon it, either at the time of its creation or at any subsequent period of its existence  [20]  . Capital refers to the amount invested in the company so that it can carry on its activities. In a company capital refers to share capital. A particular company raises capital by issuing shares to people who on acquiring such shares become members. Shareholder has neither been defined in the Act nor in the Regulations; whereas shares has been defined to mean shares in the share capital of a company carrying voting rights and includes any security which would entitle the holder to receive shares with voting rights but shall not include preference shares.  [21]  The capital clause in Memorandum of Association (MA) must state the amount of capital with which company is registered giving details of number of shares and the type of shares of the company.  [22]  A company cannot issue share capital in excess of the limit specified in the Capital clause without altering the capital clause of the MA.  [23]  Shares in a company are freely transferable, subject to certain conditions, such that no share-holder is permanently or necessarily wedded to a company. When a member transfers his shares to another person, the transferee steps into the shoes of the transferor and acquires all the rights of the transferor in respect of those shares. Public limited companies can be broadly classified into a listed company and non-listed company. Listed Company means a public limited company which is listed on any one or more recognised stock exchange(s) in India and securities (the i.e. shares, debentures etc.) of such company are traded on such stock exchanges. Unlisted Company, therefore, means a company whose securities are not listed on any of the recognised stock exchanges in India. Some of the advantages of a listed companies are :- securities freely transferable easy liquidity of securities easy availability of prices of securities reputation public awareness m ore transparency helps in obtaining loans from banks/institutions helps in marketing its products In order to come out with a Public Issue (the i.e. to offer further securities to public) or make an offer for sale of existing securities to the public, the securities of a public limited company must be listed so as to allow its shares to be traded on any recognised stock exchanges.  [24]  This can be done by issue of Prospectus and complying with all the provisions of Companies Act, 1956, rules regulations issued by Securities Exchange Board of India (SEBI) and other concerned authorities from time to time. The functions performed by the Stock exchange on this account. Each Stock Exchange has its own criteria for listing the securities which should also be met.  [25]  For example, if the company intends to list its securities on The Stock Exchange, Mumbai the post issue capital (the researcher.e. paid up capital after the proposed public issue) of such compan y should be at least Rs. 10 crores.  [26] After the successful completion of the issue, the company finalizes the basis of allotment with the regional stock exchange. If the company has proposed to list its securities with more than one stock exchange, then the basis of allotment should be finalized with the stock exchange which is situated in the state in which registered office of the company is situated (regional stock exchange). The Company enters into a listing agreement with the concerned stock exchanges and on receipt of permission from the concerned stock exchange(s), the company is listed and securities are thereafter traded on such stock exchange(s). Such companies have certain obligations with respect to the stock exchanges where their securities are listed. These obligations have been arrived from the listing agreement which the company enters with each of the stock exchanges. SEBI, through its SEBI (Central Listing Authority) Regulations, 2003 has provided fo r establishment of a self-regulatory authority Central Listing Authority (CLA). The functions of CLA will include processing the application made by any body corporate, mutual fund or collective investment scheme for the letter of recommendation for listing; and making recommendations as to listing conditions. The CLA may also perform any other function as may be specified by SEBI from time to time. Transfer of shares Members can sell their shares to any person, either directly or indirectly. This can be done through a duly executed share transfer deed.  [27]  The shares of the listed companies are traded on stock exchanges on which they are listed. The transactions are done through brokers/sub-brokers who buy/sell the securities on behalf of their clients. On receipt of the share certificates (alongwith the share transfer form), the purchaser has an option either to resell the securities through a broker in the stock market or to send the same to the company for registra tion of transfer. If he opts to send the share certificates to the company for registration of transfer, he has to sign the share transfer form and fill in such other particulars as prescribed under the form. However the trend has changed and the transfer of shares is no more such a cumbersome task, due to the introduction of Dematerialization of Shares. These procedures are now electronically processed and undertaken by various authorized depositories.  [28] Role of Stock exchanges in Capital Markets Stock Market An indispensable institution View of the Apex Court As observed by a five judge bench , the history of stock exchanges in foreign countries as well as in India shows that the development of joint stock enterprises would have never reached its present stage save for the facilities which the stock exchanges have provided for dealing in securities. They have a very important function to fulfill in the countrys economy.  [29]  The Supreme Court has also h ighlighted upon how this function is performed in the following words of J. Shah: A Stock Exchange fulfils a vital function in the economic development of a nation: its main function is to liquefy capital by enabling a person who has invested money in say a factory or a railway to convert it into cash by disposing of his share in the enterprise to some one else. Investment in joint stock companies is attractive to the public, because the value, of the shares is announced day after day in the Stock Exchanges, and the shares quoted on the Exchanges are capable of almost immediate conversion into money. In modern days a company stands little chance of inducing the public to subscribe to its capital, unless its shares are quoted in an approved Stock Exchange. All public companies are anxious to obtain permission from reputed exchanges for securing quotations of their shares and the management of a company is anxious to inform the investing public that the shares of the company will b e quoted on the Stock exchange.  [30] Briefly the role that Stock Exchanges perform in the development and functioning of capital markets would be: It provides ready market for securities. It provides liquidity. It ensures easy negotiability. It helps in the distribution of new securities. It helps in Capital formation process. It performs the role of an intermediary performing an informative an educative role for the investors. Economic Growth A well functioning securities market is conducive to sustained economic growth.  [31]  There have been a number of studies, starting from World Bank and IMF to various scholars  [32]  , which have established robust relationship not only one way, but also the both ways, between the development in the securities market and the economic growth. As analyzed and put forth by Mercereau  [33]  the securities market fosters economic growth to the extent that it-(a) augments the quantities of real savings a nd capital formation from any given level of national income, (b) increases net capital inflow from abroad, (c) raises the productivity of investment by improving allocation of investible funds, and (d) reduces the cost of capital.  [34] It is reasonable to expect savings and capital accumulation and formation to respond favorably to developments in securities market. The provision of even simple securities decouples individual acts of saving from those of investment over both time and space and thus allows savings to occur without the need for a concomitant act of investment. If economic units rely entirely on self-finance, investment is constrained in two ways: by the ability and willingness of any unit to save, and by its ability and willingness to invest. The unequal distribution of entrepreneurial talents and risk taking proclivities in any economy means that at one extreme there are some whose investment plans may be frustrated for want of enough savings, while at t he other end, there are those who do not need to consume all their incomes but who are too inert to save or too cautious to invest the surplus productively. For the economy as a whole, Bhagwati  [35]  argues, productive investment may thus fall short of its potential level. In these circumstances, the securities market provides a bridge between ultimate savers and ultimate investors and creates the opportunity to put the savings of the cautious at the disposal of the enterprising, thus promising to raise the total level of investment and hence of growth. The indivisibility or lumpiness of many potentially profitable but large investments reinforces this argument. These are commonly beyond the financing capacity of any single economic unit but may be supported if the investor can gather and combine the savings of many. Moreover, the availability of yield bearing securities makes present consumption more expensive relative to future consumption and, therefore, people might be indu ced to consume less today.  [36] The composition of savings may also change with fewer saving being held in the form of idle money or unproductive durable assets, simply because more divisible and liquid assets are available. International Linkage The securities market facilitates the internationalization of an economy by linking it with the rest of the world. This linkage assists through the inflow of capital in the form of portfolio investment. Moreover, a strong domestic stock market performance forms the basis for well performing domestic corporate to raise capital in the international market.  [37] Eatwell, thus argues, that the domestic economy is opened up to international competitive pressures, which help to raise efficiency. It is also very likely that existence of a domestic securities market will deter capital outflow by providing attractive investment opportunities within domestic economy.  [38]  Any financial development produces allocational improve ment over a system of segregated investment opportunities. The benefits of improved investment allocation are such that Eatwell defines economic development as reduction of the great dispersion in social rate of return to existing and new investments under domestic entrepreneurial control.  [39]  Instead of emphasising scarcity of capital, he focuses on the extra-ordinary distortions commonly found in the domestic securities markets of the developing countries. The distortions in the real sectors such as monopoly power, tariff protection, import quotas, credit rationing add salt to injury. In the face of great discrepancies in rate of return, the accumulation of capital does not contribute much to development. A developed securities market successfully monitors the efficiency with which the existing capital stock is deployed. Contributions to the Financial Sector In as much as the securities market enlarges the financial sector, promoting additional and more sophisticated financing, it increases opportunities for specialisation, division of labour and reductions in costs in financial activities.  [40]  The securities market and its institutions help the user in many ways to reduce the cost of capital. They provide a convenient market place to which investors and issuers of securities go and thereby avoid the need to search a suitable counterpart. The market provides standardized products and thereby cuts the information costs associated with individual instruments. The market institutions specialize and operate on large scale which cuts costs through the use of tested procedures and routines.  [41] There are also other developmental benefits associated with the existence of a securities market. The securities market provides a fast-rate breeding ground for the skills and judgment needed for entrepreneurship, risk bearing, portfolio selection and management.  [42] An active securities market serves as an engine of general financial de velopment and may, in particular, accelerate the integration of informal financial systems with the institutional financial sector.  [43]  Securities directly displace traditional assets such as gold and stocks of produce or, indirectly, may provide portfolio assets for unit trusts, pension funds and similar FIs that raise savings from the traditional sector.  [44] The existence of securities market enhances the scope, and provides institutional mechanisms, for the operation of monetary and financial policy.  [45] Regulation and Liberalization- The Path to Reform Reforms since 1990s The researcher makes a dhobi list of reforms undertaken since early 1990s. Instead let me discuss only a few major reforms. a. Control over Issue of Capital: As discussed earlier  [46]  , one of the major initiatives of liberalisation was the repeal of the Capital Issues (Control) Act, 1947 in May 1992. b. Establishment of Regulator: A major initiative of regulation was esta blishment of a statutory autonomous agency, called SEBI, to provide reassurance that it is safe to undertake transactions in securities. As the researcher discussed at an earlier occcasion  [47]  the SEBI Act, 1992 introduced a regulator in the lattice of the Capital Markets. c. Screen Based Trading: A major developmental initiative was a nation-wide on-line fully-automated screen based trading system (SBTS) where a member can punch into the computer quantities of securities and the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party. SBTS electronically matches orders on a strict price/time priority and hence cut down on time, cost and risk of error, as well as on fraud resulting in improved operational efficiency. It allowed faster incorporation of price sensitive information into prevailing prices, thus increasing the informational efficiency of markets. It enabled market participants to see the full market on real-time, making the market transparent. It allowed a large number of participants, irrespective of their geographical locations, to trade with one another simultaneously, improving the depth and liquidity of the market over 10,000 terminals creating waves by clicks from over 400 towns / cities in India. It provided full anonymity by accepting orders, big or small, from members without revealing their identity, thus providing equal access to everybody. It also provided a perfect audit trail, which helps to resolve disputes by logging in the trade execution process in entirety. The SBTS shifted the trading platform from the trading hall of an exchange to brokers premises. It was then shifted to the PCs in the residences of investors through the Internet and to hand-held devices through WAP for convenience of mobile investors. This made a huge difference in terms of equal access to investors in a geographically vast country like India. d. Risk managemen t: A number of measures were taken to manage the risks in the market so that the participants are safe and market integrity is protected. These include: i. Trading Cycle: The trading cycle varied from 14 days for specified securities to 30 days for others and settlement took another fortnight. Often this cycle was not adhered to. This was euphemistically often described as T+ any thing. Many things could happen between entering into a trade and its performance providing incentives for either of the parties to go back on its promise. This had on several occasions led to defaults and risks in settlement. In order to reduce large open positions, the trading cycle was reduced over a period of time to a week initially. Rolling settlement on T+5 basis was introduced in phases. All scrips moved to rolling settlement from December 2001. T+5 gave way to T+3 from April 2002 and T+2 from April 2003. ii. Dematerialization: Settlement system on Indian stock exchanges gave rise to settlemen t risk due to the time that elapsed before trades are settled. Trades were settled by physical movement of paper. This had two aspects. First, the settlement of trade in stock exchanges by delivery of shares by the seller and payment by the purchaser. The process of physically moving the securities from the seller to the ultimate buyer through the sellers broker and buyers broker took time with the risk of delay somewhere along the chain. The second aspect related to transfer of shares in favour of the purchaser by the company. The system of transfer of ownership was grossly inefficient as every transfer involved physical movement of paper securities to the issuer for registration, with the change of ownership being evidenced by an endorsement on the security certificate. In many cases the process of transfer took much longer, and a significant proportion of transactions ended up as bad delivery due to faulty compliance of paper work. Theft, forgery, mutilation of certificates and other irregularities were rampant, and in addition the issuer had the right to refuse the transfer of a security. All this added to costs, and delays in settlement, restricted liquidity and made investor grievance redressal time consuming and at times intractable. To obviate these problems, the Depositories Act, 1996 was passed and as discussed earlier.  [48]  Currently 99% of market capitalization is dematerialized and 99.9% of trades are settled by delivery. iii. Derivatives: To assist market participants to manage risks better through hedging, speculation and arbitrage, SC(R)A was amended in 1995 to lift the ban on options in securities. The SC(R)A was amended further in December 1999 to expand the definition of securities to include derivatives so that the whole regulatory framework governing trading of securities could apply to trading of derivatives also. A three-decade old ban on forward trading, better known as BADLA, which had lost its relevance and was hinde ring introduction of derivatives trading, was withdrawn. Derivative trading took off in June 2000 on two exchanges  [49]  . iv. Settlement Guarantee: A variety of measures were taken to address the risk in the market. Clearing corporations emerged to assume counter party risk. Trade and settlement guarantee funds were set up to guarantee settlement of trades irrespective of default by brokers. These funds provide full novation and work as central counter party. The Exchanges /clearing corporations monitor the positions of the brokers on real time basis. Various measures taken over last decade or so have yielded considerable benefits to the market, as evidenced by the growth in number of market participants, growth in volumes in securities transactions, increasing globalization of the Indian market, reduction in transaction costs, and compliance with international standards. In terms of number of trades, NSE is the third largest exchange in the world. The researcher is not going in to these details, as my objective is not to boost our performance here except to quote from the Economic Intelligence Unit 2003 study: Top of the Country class, as might be expected is Singapore followed by Hongkong and, somewhat surprisingly, India where overall disclosure standards have improved dramatically, accounting differences between local and US standards have been minimized and the number of companies with a majority of independent directors has risen significantly. Corporatisation and Demutualisation of a stock exchange The Finance Minister, during his Budget Speech for the year 2002-03, had mentioned that corporatisation of stock exchanges would be completed during the year to implement the Governments proposal to segregate ownership, management and operation of stock exchanges.  [50] Corporatisation and Demutualisation of a stock exchange is essentially a conversion from a not for profit entity to a for-profit company. The company so constituted may be a listed or an unlisted closely held public company.  [51]  Demutualisation involves the segregation of members rights into distinct segments of ownership rights and trading rights. The relationship between members and the stock exchange is altered with members retaining their trading rights and acquiring ownership rights in the stock exchange. These ownership rights have a market value and the benefits of limited liability. Professional management, availability of capital through public/ private issues and management accountability are some of the benefits of demutualisation.  [52] SEBI constituted the Group on Corporatisation and Demutualisation of Stock Exchanges (the Group) in order to review and examine the present structure of stock exchanges. Examine the various legal, accounting and tax issues associated with the corporatisation of stock exchanges. Recommend specific steps that need to be taken for implementation of the above. Advise on the consolidation and merg er of stock exchanges. The Group submitted its report on 28 August 2002 and made the following salient observations and recommendations: Stock Exchanges are converted to companies limited by shares from associations of persons/ companies limited by guarantee. Amendments are made to the Income-tax Act, 1961, so that past accumulated profits of the stock exchanges are not subject to tax. Amendments would also be required in the Indian Stamp Act, 1899, and Sales Tax Laws to allow a tax-free transfer of assets from the old entity to the demutualised new entity. The current system of permission to trade on the basis of ownership of a trading card is replaced by a system where money is deposited to obtain trading rights. Shareholders, brokers and the investing public are equally represented on the governing board of the demutualised exchange. A uniform model for corporatisation and demutualisation would have to be adopted by all stock exchanges. The merger of stock exchanges is a co mmercial decision that would be left to the stock exchanges. The Group is of the view that the corporatisation and demutualization of stock exchanges would help the consolidation of stock exchanges. If the recommendations of the Group are adopted and suitable legislative changes are carried out to implement the recommendations, the stock exchanges will be required to submit a scheme of demutualisation to SEBI by an appointed date. Non-compliance in this regard would result in temporary or permanent lapse of recognition granted to an existing stock exchange. To put these recommendations into effect the Securities Laws (Amendment) Bill, 2003 was introduced in the Parliament to amend the SCRA to provide for Corporatisation and Demutualization of stock exchange. Don’t waste time! Our writers will create an original "Stock Exchanges Role In Markets Finance Essay" essay for you Create order

Research Paper Topics on Surrogacy

Research Paper Topics on SurrogacyIt is getting progressively regular for kids brought into the world with an inability to be embraced by same sex couples. In certain states where enactment and court decisions are agreeable to the privileges of the kids, guardians are currently given the choice of having a kid with a disability.In the course of investigating this point, I have discovered that numerous individuals need to think about research paper subjects on surrogacy. They are for the most part keen on comprehending what research papers are composed, what data is accessible and how you can get included. You will find that there are a couple of distributions that give this data, anyway most data is simply found on the Internet.With the quantity of new families who decide to receive a handicapped kid from abroad, there is an enormous interest for data regarding the matter. In the mid 1990's, there were just a bunch of American-conceived youngsters with Down disorder being set with su pportive families. Presently, this has changed drastically. There are currently the greater part a million infants brought into the world with Down disorder, more than anyplace else in the world.However, with the interest for examine paper themes on surrogacy, you may find that there isn't a very remarkable market for these sorts of articles. That is the reason the destinations that offer this sort of data are so popular.You can likewise visit your neighborhood library and read their bulletins. Despite the fact that these can contain just essential data, they are an astounding spot to begin your exploration. In any case, when you start to examine the subject all the more completely, you ought to most likely proceed onward to progressively particular websites.Some of these will permit you to enter in your hunt terms to get all the outcomes surprisingly fast. On the off chance that you need to make your hunt significantly simpler, you can utilize an opposite phone index to look throug h the outcomes. Obviously, the Internet presents a few different diverse research paper themes on surrogacy. The decision is yours with respect to which to pick.

Thursday, May 21, 2020

Essay Topics for Middle School Reviews & Guide

<h1> Essay Topics for Middle School Reviews &amp; Guide </h1> <p>Now write to illuminate which occasion you like. Most center school understudies abstain from meetings to generate new ideas and start scanning for test subjects the second they get the task. Consider what you could do so as to make your school increasingly delightful. All year school is definitely not a smart thought. </p> <p>Imagine that you're the head of your school. Clarify why you particularly get a kick out of a particular educator. There are a few center school understudies who want to discuss the subjects that are specific to their age. Offer certain guides to show that what it is that you're stating is valid. </p> <h2>The Essay Topics for Middle School Stories </h2> <p>The significant thing is to pick one that meets the prerequisite you have. For instance, suppose you select the absolute first subject from our rundown. </p> <p>Our model exposition scholars have sufficient abilities in look into and approach the most refreshed research materials and along these lines you can be ensured to discover the article you are scanning for in our database. You're ensured the correspondence article will be what you've requested. A flourishing procedure article will be point by point enough so a peruser will have all the data required to complete the endeavor. Composing a difficult arrangement exposition can be hard, especially on the off chance that you are the individual picking the point. </p> <p>SATs should be disposed of. School tests aren't successful. Yearly driving tests should be compulsory for the underlying five years subsequent to getting a permit. They ought to be obligatory over a specific age. </p> <h2> What You Can Do About Essay Topics for Middle School Beginning in the Next Five Minutes</h2> <p>Third, choosing an interesting point is a significant expertise you have to ace to have a high evaluation. Picking a point can be amazingly precarious procedure particularly for the individuals who are curious about a particular sort of composing. Truly, picking a subject isn't easy. Choosing the right subject will permit you to guarantee a tranquil methods for paper composing. </p> <p>Second, you should consider the intrigue you have regarding the matter. Since you'll be entrusted to introduce broad information and clarification regarding the matter, you should make ensure that the subject you've picked have applicable and sound references. At the point when understudies thoroughly analyze aspects of music, they have to contemplate the hidden contentions they're making and work to find explicit proof that will help them demonstrate their focuses. It's obviously that you ought to pick a subject that you view as fascinating. </p> <h2> Details of Essay Topics for Middle School </h2> <p>Creating interpretive papers is a piece of your center school profession, and that implies you have to figure out how to make them appropriately. Center schoolers are every so often mentioned to create descriptive papers in math classes. Our authors are very capable in English and will ensure that every single one of the gauges are clung to. Our capable authors can manage pretty much any type of composing task, alongside Math and Physics issues and a mess more. </p> <p>Studies have exhibited that constant sitting can bring about antagonistic effects on the health of understudies. Assume your point is the estimation of mental wellbeing care. There are bunches of subjects out there, with a lot of data coasting all over the place. For instance, understudies may expound on the upsides of a veggie lover diet. </p> <h2>Ruthless Essay Topics for Middle School Strategies Exploited </h2> <p>When you form an exposition, expounding on the subject issue is only the beginning. If so, you could have an awesome starting to your informative exposition. Of the entirety Of the predominant school exposition points, no theme was chosen. You might be approached to choose an appropriate point for your article paper and you're running low on thoughts. </p> <p>When composing an examination paper, you'd be sure to address all the similitudes between the two subjects. There are numerous assortments of papers, it isn't hard to dispense with an eye on the entirety of your composing assignments. Our model article may likewise assist you with understanding how to utilize different style of composing. A fabulous expressive exposition will be stacked with subtleties. </p> <p>An over the top measure of cash is definitely not something to be thankful for. At the point when you need to pick a theme to expound on, it tends to be somewhat troublesome on the grounds that most of individuals can't generally consider something they believe is sufficiently fascinating to expound on. Open talking is perhaps the greatest dread we have in everyday life, except after you understand that most of individuals are scared by it, it's less difficult to loosen up a little and focus at work close by regardless of what kind of discourse you should give. Each individual seems to have one. </p> <p>It's easy to find their contact subtleties on the web. Bearings for Writing Think about the importance of encountering a cell phone. </p>

Tuesday, May 19, 2020

College Essay Topics

College Essay TopicsIn most cases, the students taking the ACT college entrance exam will be required to write a group of essays to achieve college credit. College essays may seem intimidating for the students, but it is actually easier than you think, and they should not be overly anxious about writing them. With practice, they can become quite enjoyable and will be very beneficial.One thing that most students are concerned with is the topic of the essay. The topic of the essay is obviously very important, and having a clearly defined topic is important for the students to learn to do. It will help them determine the proper format of the essay and can help them avoid getting sidetracked from the main subject matter.One of the first steps in writing an essay is to make sure that the students understand how to write a topic well and use the appropriate format to fit their needs. It is always a good idea to read over several different essay topics so that they can have an idea on what they are going to be writing about. This is very important because when they begin to get a feel for writing essays, they will be able to focus on the main theme of the essay rather than having to worry about the details of each individual topic.One of the biggest concerns for college students when they first start writing essays is how they will keep the writing style consistent throughout the essay. There are a number of different styles and knowing what kind of style to use can help to keep the student on the right track. Not only does the use of proper style help to stay consistent with the writing style throughout the essay, but it also helps to ensure that the essay flows well.If the college students are uncertain of how to write an essay, there are a number of different resources that they can turn to for advice. Most professors and college instructors are always looking for new and innovative ways to teach their students to write better essays. They will be able to point out different ideas that they may have not noticed before, and they will be able to use this to their advantage by using them in their own essays.Once they have an idea of how to write essays, it is easy for college students to turn to guides to help them through the process. These guides usually include a variety of different styles of essay, as well as some tips on how to organize the information. They can also give students tips on choosing the best topic, as well as provide other helpful tips and techniques for students to consider as they prepare to write an essay.When writing an essay, many students are concerned about trying to come up with the best topic for the essay topics. What is even more frustrating is the fact that there are many different types of topics, and it can be very difficult to figure out which one is best. In order to make sure that the essay topics are of a quality, the students need to spend a little time doing research about each topic in order to be sure t hat they choose the proper ones.The issues that are covered in high school are not something that can be done away with. Students should take the time to write an essay on some topic that they are interested in, as it will help them to establish some knowledge. The essay can help to show the student's ability to think logically.

Argumentative Essay Topics For Middle Schoolers

Argumentative Essay Topics For Middle SchoolersThe persuasive essay topic for middle schoolers requires some practice. There are some elements of the essay, which need to be applied in order to make it very effective. Therefore, you have to prepare a number of strategies in order to achieve success.The key to writing a persuasive essay is to begin with an opening sentence. The opening should capture the attention of the reader and then describe the basic message of the entire essay. A starting sentence will give you the opportunity to shape the flow of the entire essay.There are two types of persuasive essay topics for middle schoolers. One of these is a personal essay and the other is about the classroom. Most middle school students prefer personal essays as they involve less writing and are easier to edit. However, you should always remember that you are trying to convince the readers that your viewpoint is true.In order to write a persuasive essay about the classroom, you need to work on the presentation of facts. For instance, if you are writing about how to improve the learning environment in your class, you need to first outline the situation. Then you need to explore the problem, find the cause, and analyze the solution. When you put all these together, you will provide an effective argument for why change will benefit your students.The biggest mistake made by middle school students when writing a persuasive essay is putting too much emphasis on the argument. They focus on the material itself instead of the story that the material is telling. Once you get into the story, you should make sure that the reader gets engaged in it. In other words, do not let the reader read your essay for its entertainment value alone.Middle school students usually forget that they are writing an essay. They tend to give the emphasis to the statement instead of on the content. In order to be successful, you should write your essays like a story.Finally, there are many ways to research for persuasive essay topics for middle schoolers. You can search the Internet or look at magazines that offer writing advice. Another option is to look for the topic online. All you need to do is type 'Writing an Essay Topic for Middle Schoolers' in your search engine and you will find millions of websites that would be good sources of information.Once you choose a topic for your persuasive essay, you can start your research. This means spending time on blogs, article sites, and other online discussion forums. By looking at the works of other writers, you will learn what makes a good writing style and therefore will be able to use the style for your own essay.

Saturday, May 16, 2020

Why Everyone Is Wrong About Best Presentation Topics for Students

<h1>Why Everyone Is Wrong About Best Presentation Topics for Students </h1> <h2> Best Presentation Topics for Students - What Is It? </h2> <p>A conspicuous trait of the Fair is that separated from the typical administrations, Academic Pathway Planning, Pre-Departure direction and Test Preparation administrations are likewise given. Innovation may now and then bomb you. Undergrads have only a couple of long periods of class week after week and a lot of daytime hours to examine. They ought to be required to wear regalia. </p> <h2> Here's What I Know About Best Presentation Topics for Students</h2> <p>Therefore, it's your commitment to introduce either side of the issue regardless of any place your assessments lie. To abstain from losing your crowd and accepting a lower grade, you should begin with pondering once again a couple of cool introduction recommendations to pick a perfect point. The crowd ought to comprehend and make a psyc hological image of the subject or message right away. Guarantee it is reasonable for everyone. </p> <p>Do you might want to do an extremely long introduction, or hop straight into an issue. Presently you're stressed and will dish out a lot of your innovative time trying to pick the most reasonable subject and not practicing your introduction. There's no assurance that you will find an extraordinary subject to investigate, however you can attract motivation to deliver your own thought. An introduction for 5 minutes can get somewhat testing as you would need to cover a decent arrangement of things in only 300 seconds, and you can be able to utilize just 500550 words. </p> <h2>Ok, I Think I Understand Best Presentation Topics for Students, Now Tell Me About Best Presentation Topics for Students! </h2> <p>Consider the fundamental focuses that you need to have in your research project. Scholars utilized quite certain subtleties from the offered sources with a combination of jargon. You may believe that fascinating exposition titles do the entirety of the wo rk, empowering you to include evident models and offer normal thoughts. It's additionally astute to continually work to support your composing style and produce your paper appealing to peruse and easy to navigate.</p> <h2>Things You Should Know About Best Presentation Topics for Students </h2> <p>Do a basic research on the point to figure out how much data is accessible. To kick you off, we've arranged an exhaustive assortment of 100 subjects to make them think. In case you're thinking that its difficult to decide on the ideal subject, you may give the essayist a rundown of your absolute best ones and leave it to them to pick. </p> <p>Whatever theme you consider, remember that it should be a subject on which loads of studies or insightful articles are distributed. Since there are a ton of exceptional subjects, it might be very extreme for you to find appropriate themes for introduction assignments. Remember your theme should be a subject on which a few investigations or academic articles are distributed. Following are a couple of the proposed human science article point for those understudies that can't pick an extraordinary subject for their task. </p> <p>These angles must be thought of. In spite of the fact that you may feel nauseous at the idea of showing a few themes, use these methodologies to permit it to be ateaching triumph rather than a study hall disaster. Getting more customers, increasing your transformation deals and in any event, modifying the way of your profession are only a portion of the points of interest that you'll get by having an executioner PowerPoint introduction. Ther e is in like manner a choice of assessing the activity of kids with the guide of criticism given by the site. </p> <p>You may likely discover many travel photographs on the web yet kindly guarantee you have the consent of the copyright proprietors. Your days off ought to have a great deal of photographs and numerous pastimes have a lot of photographs out there. Understudies should effectively partake in instructional recordings to have the option to acquire a familiarity with the substance. </p> <h2>The Debate Over Best Presentation Topics for Students </h2> <p>Keep at the top of the priority list, you're the facilitator. In case you're in rush and don't possess a period for making PowerPoint Presentation by your own, you may utilize our first class direction. A brilliant introduction should trigger the crowd to consider over and break down your thoughts. Why consistently individual needs a dental specialist. </p> <p>You've been mentioned to give an introduction. In case you're as yet questionable about your introduction, keep perusing to find an assortment of connecting with introduction points. There various ways you may keep introduction engaging and influential. You ought to make sure to make your PowerPoint introduction successful and significant. </p> <h2> Details of Best Presentation Topics for Students </h2> <p>Your crowd individuals are keen on being engaged as much as they might want to gain some new useful knowledge. Unpracticed speakers are in this manner incredibly liable to endeavor to embed parts and a ton of focuses in their talks, accepting that they're basic to keep everybody alert and intrigued. The crowd will plainly be in a situation to tell in the occasion you simply blindly go for it. Your crowd will be able to relate on the grounds that no one is resistant from tending to administrators and individual workers who drive you up the divider. & lt;/p>

Choosing Nursing School Research Paper Topics

<h1>Choosing Nursing School Research Paper Topics</h1><p>While there are various distinctive nursing school inquire about paper points that you can browse, finding the ideal theme for your specific research paper is the way to accomplishment in your course. Finding a point that is both proper and appropriate for the degree of study that you are embraced just as being consistent with your very own insight and thinking aptitudes will be the most significant piece of the entire process.</p><p></p><p>Nursing school investigate paper themes ought to be fit to the particular territories of study that you have decided to attempt, yet on the off chance that you are uncertain about whether you are going to seek after the degree around there or not, at that point you ought to have the option to discover exactly how much substance is expected to suit your own needs. You will likewise have the option to evaluate whether it will be an investigation that y ou can completely focus on or in the event that you should let another person handle most of the work.</p><p></p><p>If you are uncertain about whether you can finish the substance on a specific subject, at that point you might need to consider re-appropriating a portion of the work. It is anything but difficult to pursue a nursing school examine paper that doesn't expect you to do a large portion of the work. In any case, before you consent to any such understanding, you ought to consistently ensure that you comprehend what is anticipated from you and that you can convey the elevated requirement of work that is anticipated from you.</p><p></p><p>Nursing school examine paper themes can be very tremendous and envelop a scope of subjects from life structures and physiology, to medication and technical disciplines. These subjects will all incorporate a plenitude of data, so it can frequently be elusive the kind of detail that you require w ithout additionally surrendering data that you as of now have. Nursing school look into paper themes ought to have the option to furnish you with everything that you require without the need to forfeit a lot of data that you as of now have.</p><p></p><p>A significant factor that ought to be considered is the subject of the paper. It is normally best to pick a subject that you can invest a ton of energy in and that you appreciate. It might merit considering going for a profession in nursing that expects you to devote your extra time to explore or significantly progressively specialized subjects, for example, biology.</p><p></p><p>If you have settled on a choice that you might want to do this course, at that point you likely could be pondering picking the main subject that rings a bell. Nonetheless, it is in every case best to begin by choosing what precisely you might want to do before you pick a point. You will locate that in the wake of doing some underlying exploration and finishing an article regarding the matter, you will presumably have the option to choose which nursing school inquire about paper themes that you might want to pick from.</p><p></p><p>The web based nursing school look into paper points that you will have the option to finish can likewise be customized to your particular research prerequisites. You will frequently find that the subjects that you have picked can be completely custom fitted to your own needs and necessities. Your learning style and composing style are frequently going to be the deciding components with regards to whether your selection of points will be reasonable for you or not.</p><p></p><p>Nursing school explore paper subjects can regularly be an extraordinary method of boosting your scholarly exhibition. In any case, you ought not generally pick the principal point that you find, as there will be a lot of material accessible th at you would never run over in talks or class and this is the reason it is savvy to get some underlying examination so as to discover what precisely you are searching for. All things considered, what is the purpose of picking a point that you don't even like!</p>