New Century Publications

Home  |    About Us  |   NEW ARRIVALS  |    Order Form  |    Join Mailing List  |    Contact Us

Search For

Complete Catalogue - 2015-2016
in PDF format

    Economics and Commerce
Accounting Standards / Auditing
Banking, Finance and Insurance
Business Environment
Capital Market
Climate Change
Disaster Management
Economic History
Economic Planning in India
Economic Reforms in India
Employment and Labour Welfare
Energy Security
Environment and Economics
Food Security
Foreign Direct Investment (FDI)
Foreign Exchange/Currency
Foreign Trade/External Sector
Global Financial Crisis/Global Recession
Goods and Services Tax (GST)
Governance / E-governance
Human Development
Indian Economy: General
Indian Industry, Small and Medium Enterprises, Public Sector
Information and Communication Technology (ICT)
Infrastructure and Urban Development
International Trade
Islamic Studies
Labour Economics
Micro Finance/Self-help Groups (SHGs)/Micro Credit
Monetary/Credit Policy
Panchayati Raj
Public Finance, Fiscal Federalism, Government Budgeting, Taxation
Regional Development
Research Methodology
Rural Development and Poverty
Skill Development
Social Services/Human Welfare
Urban Planning
Water Resources
Consumer Behaviour, Advertising and Consumer Protection
Corporate Governance
Human Resource Management (HRM)
Human Resources Development (HRD)
Management - General
Management Ethics
Mergers and Acquisitions
Quality Management / TQM
Retail Management
Risk Management
Supply Chain Management
Working Capital Management
    Political Science
Defence and Security
European Union
Foreign Policy
Government and Politics
Human Rights
International Relations
Minority Studies
North Africa
South Asia
United States
West Asia
    Food Standards
Food Science
General Reference
    Women Studies
Women and Law
Women Empowerment
Women Studies / Gender Studies
Indian History
Economic Laws
Intellectual Property Rights (IPRs)
Law - General
    Education - General
Human, Economic and Environmental

Capital Market and Financial System in India
By Asheesh Pandey

First Published : 2014
ISBN : 9788177083651
Pages : 234
Binding : Hardbound
Size : 5 x 9
Price : US$ 44

The financial system of a country promotes savings by providing a wide variety of financial assets to the general public. Savings collected from the household sector are pooled together and allocated to various sectors of the economy for raising production levels. If the allocation of credit is judicious and socially equitable, it can help achieve the twin objectives of growth and social justice.

An understanding of financial markets—as part of the financial system—is important as they are at the core of the transmission mechanism of monetary policy. In India, financial markets have been developed with a specific emphasis on increasing allocative efficiency of resources and promoting financial stability. Financial markets in India comprise, in the main, money market, Government securities market, capital market, corporate debt market, credit market, and foreign exchange market.

Capital market plays a very important role in the development of financial system of any economy. It is a market where financial assets such as equities/debts are traded over a long period of time.

Although the capital market in India has a long history, it remained on the periphery of the financial system for a long time. Various reforms undertaken since the early 1990s by the Securities and Exchange Board of India (SEBI) and the Government have brought about a significant structural transformation in the Indian capital market. As a result, the Indian equity market has become modern and transparent.

The equity market has witnessed widespread development in infrastructure and its functioning is comparable to international standards. It has seen significant increase in growth and diversity in composition since early 1990s.

1. Indian Economy: An Overview
1.1 Human Resources
1.2 Economic Planning
1.3 Agriculture and Rural Development
1.4 Industry and Infrastructure
1.5 Fiscal Policy
1.6 Money, Credit and Prices
1.7 Financial Institutions and Financial Markets
1.8 Employment and Labour Welfare
1.9 Environmental Concerns
1.10 Foreign Trade

2. Financial Sector of India: Pre-Reforms Period
2.1 State Control of Financial Sector
2.2 Nationalisation of Imperial Bank of India (1955)
2.3 Nationalisation of Life Insurance Business (1956)
2.4 Nationalisation of Commercial Banks (1969 and 1980)
2.5 Nationalisation of General Insurance Business (1973)
2.6 Rethinking on State Domination of Financial Sector
2.7 Committee on Financial System, 1991
2.8 Approach to Financial Sector Reforms

3. Financial Sector of India: Post-reforms Period
3.1 Committee on the Financial System, 1991
3.2 Developing and Strengthening Financial Infrastructure
3.3 Financial Regulation and Supervision
3.4 Financial Openness
3.5 International Security Standards
3.6 Migration to Basel II Norms
3.7 Accounting and Auditing Standards
3.7.1 Marking-to-market
3.8 Technological Solutions for Financial Services
3.9 Legal Reforms for Strengthening Financial Sector
3.9.1 Recent Acts Enacted by the Parliament
3.9.2 Credit Information Companies (Regulation) Act, 2005
3.9.3 Government Securities Act, 2006
3.9.4 Payment and Settlement Systems Act, 2007
3.10 Committee on Financial Sector Reforms, 2008
3.11 Committee on Financial Sector Assessment (CFSA), 2009
3.12 Achievements of Financial Sector Reforms
3.13 Areas of Concern
4. Capital Market: Evolution and Present Structure
4.1 Capital Market: Meaning and Significance
4.2 Capital Market in the Pre-1991 Period
4.3 Securities and Exchange Board of India (SEBI)
4.3.1 Objectives
4.3.2 Powers and Functions
4.3.3 Organisational Strengthening of SEBI
4.4 Summing Up
5. Capital Market Reforms
5.1 Trading Infrastructure in Stock Exchanges
5.2 Corporatisation and Demutualisation of Stock Exchanges
5.3 Depository System, Dematerialisation (Demat) and Rematerialisation
5.3.1 Depository System
5.3.2 Dematerialisation (Demat)
5.3.3 Rematerialisation
5.4 Introduction of Free Pricing
5.5 Strengthening of Disclosure Norms
5.6 Transparency and Efficiency
5.7 Shortening of Settlement Cycle
5.8 Growth of Service Providers
5.9 Protection of Investors
5.10 Portfolio Investment Flows
6. Capital Market Instruments
6.1 Ordinary Shares
6.2 Preference Shares
6.3 Debentures
6.4 Types of Orders
6.4.1 Market Order
6.4.2 Limit Order
6.4.3 Stop-Loss Order
6.4.4 Stop-Limit Order
6.4.5 Fill or Kill Order
6.4.6 Market if Touched (MIT)
6.4.7 Good Till Cancelled (GTC)
6.4.8 Day Order or Good for the Day
6.5 Financial Derivatives
6.5.1 Emergence of Complex Financial Products
6.5.2 Meaning of Derivatives
6.5.3 Reasons for the Popularity of Derivatives
6.6 Variants (or Types) of Derivative Contracts
6.6.1 Forwards/Forward Contracts
6.6.2 Futures/Future Contracts
6.6.3 Options
6.6.4 Swaps
6.6.5 Swaptions
6.7 Participants in the Derivatives Market
6.7.1 Hedgers
6.7.2 Speculators
6.7.3 Arbitrageurs
6.8 Economic Role of Derivatives
6.9 L.C. Gupta Committee on Derivatives Trading in India
6.9.1 Investor Protection
6.9.2 Derivative Products
6.9.3 Use of Derivatives by Mutual Funds
6.9.4 SEBI Related Issues
6.10 Amendment of Securities Contract Regulation Act
6.11 Measures to Protect the Rights of Investors in the Derivatives Market
6.12 Recent Developments in the Derivatives Market
7. Price Multiples: Review of Literature
7.1 Review of Literature for Matured Markets
7.2 Literature on Emerging Markets including India
8. Equity Valuation: Theoretical Framework
8.1 Concept of Valuation
8.2 Approaches to Valuation
8.2.1 Discounted Cash Flow Valuation (DCF)
8.2.2 Contingent Claim Valuation
8.2.3 Technical Analysis
8.3 Relative Valuation
8.3.1 Reasons for Popularity
8.3.2 Drawbacks of Relative Valuation
8.3.3 Basic Steps in Relative Valuation
8.4 Prominent Price Multiples
8.4.1 Price Earnings Ratio
8.4.2 Book Value Multiples
8.4.3 Price to Sales Ratio
9. Integration of Financial Markets
9.1 Heterogeneous Nature of Financial Markets
9.2 Meaning of Financial Integration
9.3 Dimensions of Financial Market Integration
9.3.1 Domestic Financial Integration
9.3.2 Regional Financial Integration
9.3.3 Global Financial Integration
9.4 Measures of Financial Integration
9.5 Benefits and Risks of Financial Integration
9.5.1 Benefits
9.5.2 Risks
9.6 Need for Integration of Domestic Financial Markets
9.7 Measures Taken for Integration of Financial Markets
9.7.1 Free Pricing
9.7.2 Widening Participation
9.7.3 New Instruments
9.7.4 Institutional Measures
9.7.5 Technology, Payment and Settlement Infrastructure
9.8 Segment-wise Integration
9.8.1 Integration of the Government Securities Market
9.8.2 Integration of the Credit Market
9.8.3 Integration of the Foreign Exchange Market
9.8.4 Stock Market Integration
10. Capital Market and Global Financial Crisis
10.1 Causes of Global Financial Crisis
10.1.1 Global Macro Imbalances
10.1.2 Under-pricing of Risks
10.1.3 Loose Monetary Policy of US
10.1.4 Relaxation of Lending Standards
10.1.5 Regulatory Shortcomings
10.2 Severity and Impact of the Crisis
10.2.1 Impact on Global Capital Market
10.2.2 Impact on US Dollar
10.2.3 Impact on Equity Markets
10.3 World Level Remedial Measures
10.3.1 Bailout Packages
10.3.2 G-20 Decisions, April 2009
10.4 Impact of the Crisis on India
10.5 Remedial Measures Taken by the Government
10.5.1 Policy Response by RBI
10.5.2 Assessment of Policy Response
Glossary of Capital Market Terms




Dr. Asheesh Pandey is currently Assistant Professor of Finance at Jaipuria Institute of Management, NOIDA. He is also the Programme Director for PGDM (Services) at the same Institute. He holds M.Com., MBA (Finance) and Ph.D. degrees from University of Delhi. With around 13 years of industry, research and teaching experience, he regularly contributes research papers in the area of finance to national and international journals including Vision, Management of Labour Studies, AAMJAF and AJFA.

Dr. Asheesh has also participated and presented papers in various national conferences and seminars. His research interest includes equity valuation, portfolio management, financial derivatives and corporate finance.

4800/24, Bharat Ram Road, Ansari Road, Daryaganj, New Delhi - 110 002 INDIA
Tel. : 91-11-23247798, 65396605, 43587398; Fax : 91-11-41017798; Mobile: 9811266355
E-mail :
A creation of : Crux Infotech