Nothing Special   »   [go: up one dir, main page]
Scribd Logo
Upload

Welcome to Scribd!

  • 166 views

    Madurai Kamaraj University: Capital Market Efficiency and Development of Capital Market in India

    Uploaded by

    chanus92
    The document discusses capital market efficiency and the development of capital markets in India. It defines capital market efficiency as the ability of security prices to quickly incorporate all relevant information. It describes the three forms of market efficiency and provides data on the performance of India's primary and secondary capital markets between 2011-2017. Overall resources mobilized through the primary market increased significantly during this period. Several indicators of the secondary market such as market capitalization and turnover also witnessed steady growth. The conclusion states that India needs continued innovation and reforms to further reduce costs and risks in the capital market and make it a world-class system on par with global standards.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Madurai Kamaraj University: Capital Market Efficiency and Development of Capital Market in India

    Uploaded by

    chanus92
    166 views11 pages
    The document discusses capital market efficiency and the development of capital markets in India. It defines capital market efficiency as the ability of security prices to quickly incorporate all relevant information. It describes the three forms of market efficiency and provides data on the performance of India's primary and secondary capital markets between 2011-2017. Overall resources mobilized through the primary market increased significantly during this period. Several indicators of the secondary market such as market capitalization and turnover also witnessed steady growth. The conclusion states that India needs continued innovation and reforms to further reduce costs and risks in the capital market and make it a world-class system on par with global standards.

    Original Description:

    Capital Market

    Original Title

    Capital Market

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses capital market efficiency and the development of capital markets in India. It defines capital market efficiency as the ability of security prices to quickly incorporate all relevant information. It describes the three forms of market efficiency and provides data on the performance of India's primary and secondary capital markets between 2011-2017. Overall resources mobilized through the primary market increased significantly during this period. Several indicators of the secondary market such as market capitalization and turnover also witnessed steady growth. The conclusion states that India needs continued innovation and reforms to further reduce costs and risks in the capital market and make it a world-class system on par with global standards.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    166 views11 pages

    Madurai Kamaraj University: Capital Market Efficiency and Development of Capital Market in India

    Uploaded by

    chanus92
    The document discusses capital market efficiency and the development of capital markets in India. It defines capital market efficiency as the ability of security prices to quickly incorporate all relevant information. It describes the three forms of market efficiency and provides data on the performance of India's primary and secondary capital markets between 2011-2017. Overall resources mobilized through the primary market increased significantly during this period. Several indicators of the secondary market such as market capitalization and turnover also witnessed steady growth. The conclusion states that India needs continued innovation and reforms to further reduce costs and risks in the capital market and make it a world-class system on par with global standards.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 11

    MADURAI KAMARAJ UNIVERSITY

    (University with potentials for excellence)

    UGC- HUMAN RESOURCES DEVELOPMENT CENTRE


    and
    SCHOOL OF BUSINESS STUDIES
    REFERESHER COURSE IN BUSINESS STUDIES AND COMMERCE
    (From 16.11.2018 To 06.12.2018)

    CAPITAL MARKET EFFICIENCY AND


    DEVELOPMENT OF CAPITAL MARKET IN INDIA

    Presented By

    Dr. M.BHARATH, Ph.D.,


    Assistant Professor in Commerce,
    (Deputed from Annamalai University)
    THIRU.VI.KA. Government Arts College,
    THIRUVARUR – 610 003
    OBJECTIVES
    The following are the objectives of the study as;

    To know the concept of the capital market efficiency.


    To highlight the trends in the capital market in India
    INTRODUCTION

     Companies are long term funds in the forms of debt and


    equity from the capital markets.
     Finance managers should, therefore, know the ways in
    which securities are traded and priced in the capital
    markets.
     They should also know the procedures followed in issuing
    securities.
     Securities will be fairly priced in the capital markets if they
    are efficient.
    CAPITAL MARKET EFFICIENCY

     Capital Market facilitates the buying and selling of securities, such as shares and
    debentures or bonds.
     They perform two valuable functions viz.,
    Liquidity
    Fair Price of Security
     The security prices have been observed to move randomly and unpredictability.
     The efficiency of security prices depends on the speed of price adjustment to any
    available information.
     The more is the speed or quick of adjustment, the more efficient will be the
    security prices.
     The capital market efficiency may, therefore, be defined as, “the ability of
    securities to reflect and incorporate all relevant information, almost
    instantaneously in their prices.”
    FORMS OF MARKET EFFICIENCY

     Finance theory refers to three forms of market


    efficiency:
     Weak Form of Efficiency - Security prices reflect all PAST
    information.
     Semi - Strong Form of Efficiency - Security prices reflect all
    PUBLICALLY information.
     Strong Form of Efficiency - Security prices reflect all
    PUBLISHED AND UNPUBLISHED (PUBLIC AND PRIVATE)
    information.
    CAPITAL MARKET IN INDIA
     Pivotal role in the growth of an economy and development of the overall
    financial system.
     Resources mobilisation and allocation Companies and Governments raise
    long term funds.
     Includes Financial Institutions, Commercial Banks, Insurance Companies,
    Stock Exchanges, Co-operative Banks, Investment Trust or Companies etc.
     Two Segments of the Capital Market Viz: Primary Market and Secondary
    Market.
     Primary Market / New |Issues Market - Securities which are issued to the
    public for the first time (equity and debt).
     Secondary Market – Resale of securities and securities have already been
    issued through the new issue market are traded in the market .
    PERFORMANCE OF PRIMARY MARKET

    Table 1 Resources Mobilization From the Primary Market (Rs.in Crores)


    Year
    Name of the
    Securities
    2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

    Dept. 4791 2217 15042 6912 4232 23893

    Equity 11647 7446 3313 3872 18260 24432

    Private
    156634 237405 177561 221348 388988 419388
    Placement

    Source: Hand Book of Statistics on the Indian Securities Market, 2017(SEBI), and
    RBI Annual Report, 2017.
    PERFORMANCE OF SECONDARY MARKET

    Table 2 Secondary Market – Select Indicators for BSE and NSE


    Year
    Indicators 2011- 2012- 2013- 2014- 2015- 2016-
    2012 2013 2014 2015 2016 2017
    No. of Listed BSE 5133 5211 5336 5624 5911 5834
    Companies NSE 1646 1666 1688 1733 1808 1817
    Market BSE 6214941 6387887 7415296 10149290 9475328 10788709
    Capitalisation
    NSE 6096518 6239035 7277720 9930122 9310471 10618012
    (Rs. In Crores)
    Turnover (Rs. BSE 667498 548774 521664 854845 740089 998267
    In Crores) NSE 2810893 270829 2808488 4329655 4234983 5455913
    Price Earnings BSE 17.8 16.9 18.3 19.5 19.3 20.6
    Ratio (%) NSE 18.7 17.6 18.9 22.7 20.9 21.6
    Source: Hand Book of Statistics on the Indian Securities Market, 2017(SEBI), and RBI
    Annual Report, 2017.
    CONCLUSION
    India being an emerging economy needs innovation and reforms in the
    capital market. Innovation and reforms not only add value in the existing
    technology and system but also lead to decrease in the cost of capital
    and moderate the risk exposure of the capital market instruments. There
    has been a revolutionary change over a period of time. In fact, on
    almost all the operational and systematic risk management parameters,
    settlement system, disclosures, accounting standards, the Indian Capital
    Market is at par with the global standards. The goal of SEBI is to make
    the Indian Capital Market truly world class, competitive, transparent and
    efficient. Let us dream to make our Indian Capital Market a benchmark
    for the rest of the world.
    THANK YOU
    MADURAI KAMARAJ UNIVERSITY
    (University with potentials for excellence)

    UGC- HUMAN RESOURCES DEVELOPMENT CENTRE


    and
    SCHOOL OF BUSINESS STUDIES
    REFERESHER COURSE IN BUSINESS STUDIES AND COMMERCE
    (From 16.11.2018 To 06.12.2018)

    SUSTAINABLE TRIBAL TOURISM IN TAMILNADU


    WITH REFERENCE TO KODAIKANAL

    Presented By

    Dr. M.SARAVANAN, Ph.D.,


    Assistant Professor in Commerce,
    (Deputed from Annamalai University)
    Government Arts College,
    KARUR

    You might also like