Indian Securities Market and Telecom Industry
1:
INDIAN SECURITIES MARKET
1.1.a) INTRODUCTION
As per Securities Contracts (Regulation) Act, 1956 , the term “Securities” include: (1) Shares, scrip’s, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or body corporate:(a) Derivatives;
(b) Units of any other instrument issued by any collective investment scheme to the investors in such schemes;
(c) Security receipt as defined in clause (zg) of section 2 of the Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002;
(d) Units or any other such instrument issued to the investors under any mutual fund scheme;
(e) Any certificate or instrument (by whatever name called), issued to an investor by any issuer being a special purpose distinct entity which possesses any debt or receivable, including mortgage debt, assigned to such entity, and acknowledging beneficial interest of such investor in such debt or receivable, including mortgage debt, as the case may be;
(2) Government securities,
(a) Such other instruments as may be declared by the Central Government to be securities; and
(3) Rights or interest in securities.
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1.1.b) IMPORTANCE OF SECURITY MARKET
Securities markets provide a channel for allocation of savings to those who have a productive need for them. As a result, the savers and investors are not constrained by their individual abilities, but by the economy’s abilities to invest and save respectively, which inevitably enhances savings and investment in the economy. The securities markets in India have witnessed several policy initiatives, which has refined the market micro-structure, modernized operations and broadened investment choices for the investors. The main reforms and changes carried out in the market in last 2 decades explained in the following pages.
1.1.c) PARTICIPANTS AND FUNCTIONS
Transfer of resources from those with idle resources
INDIAN SECURITIES MARKET
1.1.a) INTRODUCTION
As per Securities Contracts (Regulation) Act, 1956 , the term “Securities” include: (1) Shares, scrip’s, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or body corporate:(a) Derivatives;
(b) Units of any other instrument issued by any collective investment scheme to the investors in such schemes;
(c) Security receipt as defined in clause (zg) of section 2 of the Securitization and
Reconstruction of Financial Assets and Enforcement of Security Interest Act,
2002;
(d) Units or any other such instrument issued to the investors under any mutual fund scheme;
(e) Any certificate or instrument (by whatever name called), issued to an investor by any issuer being a special purpose distinct entity which possesses any debt or receivable, including mortgage debt, assigned to such entity, and acknowledging beneficial interest of such investor in such debt or receivable, including mortgage debt, as the case may be;
(2) Government securities,
(a) Such other instruments as may be declared by the Central Government to be securities; and
(3) Rights or interest in securities.
1
1.1.b) IMPORTANCE OF SECURITY MARKET
Securities markets provide a channel for allocation of savings to those who have a productive need for them. As a result, the savers and investors are not constrained by their individual abilities, but by the economy’s abilities to invest and save respectively, which inevitably enhances savings and investment in the economy. The securities markets in India have witnessed several policy initiatives, which has refined the market micro-structure, modernized operations and broadened investment choices for the investors. The main reforms and changes carried out in the market in last 2 decades explained in the following pages.
1.1.c) PARTICIPANTS AND FUNCTIONS
Transfer of resources from those with idle resources