Capital Markets of India: An Investor's Guide (Wiley Finance)

The book is a good indicator of India's promise. The strong growth of the Indian economy in recent years has attracted much foreign investment. But if you want to invest directly, instead of through a mutual fund, the book has detailed explanations of the Indian financial structure. Much attention is given to Mumbai, the financial capital. How its stock exchange and the National Stock Exchange operate, and various indices defined on the major companies. There is already a comprehensive set of indices, and a classification of industry sectors. Derivatives also exist, since 2000. The book defines the major ones, and shows that these usually have deep liquidity. Something needed by most investors. In many ways, while India is still a developing country, its financial markets are quite sophisticated. Capital Markets of India: An Investor's Guide......Page 6 Contents......Page 10 List of Figures......Page 14 List of Tables......Page 16 Preface......Page 20 Acknowledgments......Page 26 About the Author......Page 30 GROWTH OF FOREIGN INVESTMENT......Page 32 IMPROVED FOREIGN INSTITUTIONAL INVESTOR (FII) INTEREST AND ACCESS TO THE PUBLIC MARKETS......Page 36 RISING DOMESTIC INVESTMENT DEMAND......Page 40 MARKET RISKS......Page 42 SUMMARY......Page 48 CHAPTER HIGHLIGHTS......Page 50 FOREIGN INVESTMENT......Page 51 TAX CONSIDERATIONS FOR FIIS......Page 57 CHALLENGES FOR U.S. HEDGE FUND FIIS......Page 60 FINANCIAL INSTRUMENTS AVAILABLE TO FIIS......Page 64 INVESTMENT LIMITS......Page 79 BROKERAGE FEES......Page 82 FII APPLICATION PROCEDURES......Page 83 SUMMARY OF FII INVESTMENT......Page 87 CHAPTER HIGHLIGHTS......Page 88 MINISTRIES AND DEPARTMENTS ADMINISTERING FDI......Page 90 APPROVAL PROCESS FOR FDI......Page 92 INDUSTRIAL SECTOR PREFERENCE......Page 94 SUMMARY......Page 95 CHAPTER HIGHLIGHTS......Page 96 THE SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)......Page 97 DISCLOSURE AND TRANSPARENCY RULES......Page 100 EXCHANGE SURVEILLANCE......Page 101 STOCK EXCHANGE RISK SYSTEMS......Page 106 MARKET-EMBEDDED SAFEGUARDS TO CONTROL ABNORMAL STOCK AND MARKET BEHAVIOR......Page 107 MARGIN CONTROLS......Page 113 ADDITIONAL RISK CONTROLS FOR DERIVATIVES......Page 120 STOCK EXCHANGE CENTRAL COUNTERPARTY ROLE......Page 122 GUARANTEE FUNDS......Page 124 INSPECTION OF BROKERS’ BOOKS......Page 129 SUMMARY......Page 130 CHAPTER HIGHLIGHTS......Page 132 INDIA’S STOCK EXCHANGES......Page 134 EXCHANGE TRADING RUDIMENTS......Page 137 EXCHANGE TRADING SYSTEMS......Page 143 TRADING FEATURES OF THE EXCHANGES......Page 144 EXCHANGE SETTLEMENT SYSTEMS......Page 150 APPROVED CLEARING BANKS......Page 155 EXCHANGE CLEARINGHOUSES......Page 156 CUSTODIANS......Page 161 DEPOSITORIES......Page 163 SUMMARY......Page 166 CHAPTER HIGHLIGHTS......Page 168 INDIAN DERIVATIVES MARKET FUNDAMENTALS......Page 169 BSE DERIVATIVES PRODUCTS......Page 175 NSE DERIVATIVES PRODUCTS......Page 182 SUMMARY......Page 189 CHAPTER HIGHLIGHTS......Page 190 INDIAN DEBT MARKET FUNDAMENTALS......Page 191 MARKET INFRASTRUCTURE......Page 200 MARKET STRUCTURE......Page 203 DEBT TRADING......Page 206 CLEARING AND SETTLEMENT......Page 210 RISK MANAGEMENT......Page 214 BROKERAGE RATES......Page 215 REFERENCE RATES......Page 216 SUMMARY......Page 218 CHAPTER HIGHLIGHTS......Page 220 BSE-SPONSORED INDEXES......Page 221 NSE-SPONSORED INDEXES......Page 239 SUMMARY......Page 256 Appendix A: Facts and Figures about India......Page 258 FUN FACTS ABOUT INDIA......Page 272 Appendix B: India’s Unique Numbering System......Page 276 Appendix C: The Indian Time Zone......Page 280 Appendix D: BSE and NSE Derivatives Underlying Stock Details......Page 282 Appendix E: Economic Statistics......Page 290 Appendix F: Order Types......Page 294 Appendix G: NSE and BSE Equity Classifications......Page 296 Appendix H: Exchange Trading and Clearing Holidays......Page 298 Appendix I: Index Constituents......Page 302 Appendix J: Calculation of NSE Option Base Prices......Page 386 ADR/GDR: ORDINARY ARBITRAGE......Page 388 Appendix L: Major Financial Institutions in India......Page 392 Appendix M: Contact Information for Important Financial Services Institutions......Page 396 Appendix N: Further Sources of Information......Page 408 Notes......Page 412 Acronyms and Abbreviations......Page 414 Glossary......Page 416 Index......Page 428 About the author India's capital markets Growth of foreign investment Improved FII interest and access to the public markets Rising domestic investment demand Market risks Summary Foreign portfolio investment in India Foreign investment Tax considerations for FIIs Repatriation of investment funds Challenges for US hedge fund FIIs Financial instruments available to FIIs Investment limits Brokerage fees FII application procedures Trading and settlement-related issues Summary of FII investment Foreign direct investment Ministries and departments administering FDI Foreign investment through global depository receipts (Euro issues) Approval process for FDI Industrial sector preference Summary Safety and integrity The regulator and market safeguards The Securities Exchange Board of India (SEBI) Market safety and safeguards Disclosure and transparency rules Exchange surveillance Stock exchange risk systems Market-embedded safeguards to control abnormal stock and market behavior Margin controls Additional risk controls for derivatives Stock exchange central counterparty role Guarantee funds Inspection of brokers' books Summary The equity market The stock exchanges, trading and settlement India's stock exchanges Exchange trading rudiments Exchange trading systems Trading features of the exchanges Exchange settlement systems Approved clearing banks Exchange clearing houses Custodians Depositories Settlement preparation for short selling Summary Derivatives BSE derivatives NSE derivative products Summary The India debt market Indian debt market fundamentals Market infrastructure Market structure Debt trading Clearing and settlement Risk management Brokerage rates Reference rates Summary Indices: general market and sector-specific* BSE-sponsored indices NSE-sponsored indices Appendix A: facts and figures about India Appendix B: India's unique numbering system Appendix C: the Indian time zone Appendix D: BSE and NSE derivatives underlying stock details Appendix E: economic statistics Appendix F: order types Appendix G: NSE and BSE equity classifications Appendix H: exchange trading and clearing holidays Appendix I: index constituents Appendix J: calculation of NSE option base prices Appendix K: ADR/GDR vs. ordinary share arbitrage: an example Appendix L: major financial institutions in India Appendix M: contact information for important financial service institutions.

while China Has Taken Center Stage For Global Investors Over The Past Decade, The Majority Of Individuals And Institutions Alike Have Overlooked The Opportunity To Invest In A Largely Underappreciated, Under-invested, Dynamic, And Reforming Economy: India. Since The Early 1990s, India's Government Has Promoted Reforms That Have Created Sustainable 7 1/2 To 8 Percent Annual Growth, With No Slow-down In Sight. But While The Investment World Is Now Beginning To Pay Serious Attention To India, The Level Of Exposure To This Market Continues To Be Relatively Minor, And The Average Investor's Knowledge Of India Is Minimal.

capital Markets Of India Addresses The Basics Of Becoming A New Investor In The Indian Markets, Explaining How The Market Operates And How You Can Get Involved. It Provides The Necessary Information About Indian Financial Institutions, Such As The Stock Exchanges And Regulatory Structure; The Strength Of These Institutions; The Safety And Integrity Of The Market; And The Trading And Settlement Process. The Author Explains The Reforms That Have Taken Place And The Advantages That They Bring To The Market, While Also Outlining Market Risks.

this Detailed Guide Not Only Offers Basic Information About How The Markets In India Work, But Also Provides The Contacts And Facts To Help Individuals With Their Own Investing Plan. It Explains How To Make Investments In The Market, The Restrictions Or Requirements For Foreigners Investing In The Domestic Markets, And The Exact Procedures To Follow To Address These Requirements.

capital Markets Of India Also Provides You With An Overview Of The Products Available In This Market—including Equity And Derivative Products As Well As Stocks Underlying The Various Derivative Products—along With Descriptions Of Government And Private Debt Markets And Various General Market And Sector-specific Indexes, Together With Their Component Companies. In Addition, A Set Of Useful Appendixes Provides Names, Descriptions, And Web Site Addresses Of Key Market Institutions; Names, Addresses, And Phone Numbers Of Important Market Participants; And Many More Valuable Facts.

india Presents A Compelling Investment Opportunity To The Savvy Investor. Capital Markets Of India Shows Both Individual And Institutional Investors How To Take Full Advantage Of It.

Capital Markets in India : An Investor's Guide aims to provide the first comprehensive book on investing in the India markets. India is right now at the forefront of globalization. The book's focus is on the equity market, but it also addresses derivatives, fixed income, and foreign direct investments. Chapter topics include facts about the Indian economy; the Foreign Institutional Investor (FII) regulations, registration process, and applications; detail about the market regulation and the regulator; the very important market safeguards built into the Indian market systems; and lists of companies ranked by various criteria such as capitalization, turnover, industry, and earnings. The book even supplies investors and traders with contact information for many of the key institutions and market players. Readers will not only gain basic information about how the markets in India work, but also the contacts and facts to help them with their own investing plan. "Capital Markets of India addresses the basics of becoming a new investor in the Indian markets, explaining how the market operates and how you can get involved. It provides the necessary information about Indian financial institutions, such as the stock exchanges and regulatory structure; the strength of these institutions; the safety and integrity of the market; and the trading and settlement process. The author explains the reforms that have taken place and the advantages that they bring to the market, while also outlining market risks."--Jacket