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Capital Market Practice in India
SECTOR OVERVIEW 2007-08
In the preceding year, correction in a bullish market subsequently followed by bear market rallies was never apprehended to result in a widespread pessimism. Indian stock markets have really been on doldrums and is still trying to achieve a optimal and stable position. However, the apparent crisis has not stopped significant industrial sectors of Corporate India showing growth. The well said idiom “ Necessity is the mother of Invention” has significantly manipulated the key players of Indian capital market to innovate new financial instruments, investment strategies and alike. In the last year, Indian companies have used American Depository Receipts (ADRs), Overseas listing on AIM, SGX, LSE, etc, Global Depository Receipts (GDRs), Convertible Alternative Reference Securities (CARs), Foreign Currency Exchangeable Bonds (FCEBs) and Qualified Institutional Placements (QIPs).
Its Is not only SEBI who has contributed to the development of innovating by increasing the scope and application of its regulations, but other regulatory bodies like RBI, FIPB, etc have made significant contributions . With liberalization of FDI & ECB Policies, FII investments in the capital markets, which began in January 1993, increased from USD 1 million at end-March 1993 to USD 66.6 billion at end-March 2008. In addition, venture capitalists invested around USD 928 million in 80 deals for entrepreneurial companies in India in 2007. This was a 166 per cent increase over the USD349 million invested in 36 deals in 2006 – easily the highest total on record for the region.
Capital Market Practice
With Investment Bankers and Merchant Bankers ...